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The Gartner Group

Total Cost of Ownership: The Impact of System Management Tools
by: D. Cappuccio, B. Keyworth, W. Kirwin

Summary

    TCO models vividly show that with distributed systems, labor costs far exceed the initial acquisition costs of the computing equipment. Furthermore, the costs escalate rapidly as PCs and LANs become the defacto infrastructure.

    Our data shows that on an annual basis, a networked PC costs about $13,200 per node annually for hardware, software, support and administrative services and end-user operations. By utilizing best-of-breed system management tools, coupled with a management enabled platform, the TCO of distributed PC/LAN-based systems can be reduced by more than $2,000 (15 percent) annually.

    One of the most painful truths to emerge from the distributed computing model of the 1990s is that support costs have escalated well past anyone's expectations. Enterprises are finding that hidden costs - e.g., non-technical, non-IS personnel attempting to resolve EUC or LAN problems - can be as much as 24 percent of the entire IS budget.

    End-user time spent on non-job-related PC activities accounts for more than 40 percent of a PC's total cost More than 50 percent of IT expense lies outside the IS organization.

    Desktop management leads to a $225 annual reduction in technical support and user operations costs. A comparable cost reduction of $220 annually comes from the ability to discover and inventory the desktop components. An up-to-date inventory helps a number of constituencies, including the help desk, asset managers, auditors, service providers and IS planners.

    Remote control technology had the largest cost reduction, saving over $400 annually in technical support, administration and end-user costs. The reduction in peer support is significant, with more than $200 savings per user annually projected by using remote control instead of local labor to troubleshoot systems and teach users remotely.

    Ultimately, PCs and users will be able to heal themselves, taking advantage of adaptive technology that learns the patterns of events and anticipates and corrects problems before they happen. The lowest cost event is one that does not happen.

    Most enterprise cannot delay taking the recommended steps to reduce distributed computing TCO Vendors are releasing products specifically aimed at reducing technical support, administration and end-user operating costs.

    The time to begin investing in distributed system management technology is now.

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