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Discover how much your IT operations are really costing your business with our personalised calculator.
Find out your costAs many businesses battle inflation and falling profitability, cost optimisation is crucial. However, it’s all too common for rising costs to be hidden, leaving you unsure of where your money is going. IT is a common culprit for this.
Knowing your total cost of ownership (TCO) can uncover the mystery. It’s a comprehensive metric that calculates the overall cost of a product or service over its entire lifecycle. It’s often used to help businesses understand all the costs that go into running and maintaining their IT operations, including direct costs like purchase price and staff salaries and indirect costs such as maintenance, repairs, upgrades and energy consumption. And, once you know your TCO, it becomes much easier to monitor inflation and find routes to lower costs.
We’ve built a total cost of ownership calculator to uncover how much you’re spending each year on IT, incorporating factors like staff overheads, maintenance costs and more. Just fill in a few details about your IT below, and you’ll get a personalised cost.
Shocked by how much your IT is costing your business? While IT will always require investment to maintain performance and embrace new technologies, there are ways to reduce your TCO and drive cost efficiency.
The most effective, by far, is using outsourcing.
By placing all or parts of your IT operations to a managed services provider, you can get the support you need for business continuity and optimisation without having to cover salaries, overheads, equipment and so on. This also helps you overcome resource gaps. Instead, you’ll just pay a monthly set fee.
IT outsourcing can save businesses up to 70% in long-term operational expenses.
Utilising an IT managed services provider also gives you access to leading expertise and guidance, helping to innovate your IT and make crucial improvements. This means you get more value for IT expenditure.
Speak to us about our managed services packages
The cost our calculator gives you is based on the answers you’ve given us and industry benchmarks. This figure reflects having dedicated IT resource, backfill and cover as required, an IT director/manager. It is also based on your IT staff being in full-time employment, including the cost of pensions, National Insurance and so on.
Due to this, the figure is an estimate rather than an exact measurement.
IT operations require significant investment. While you may be aware of direct costs, like the price to purchase hardware and software or renew licences, many other costs are less apparent. This could include maintenance costs, IT employee benefits, energy costs and so on.
However, these do contribute to your overall expenses. This isn’t necessarily a negative thing, provided you’re getting enough value back. But many businesses face rising costs without getting the performance they want. If systems become outdated or you do not have the resource to adequately run your IT processes, it can result in higher costs around maintenance and declining productivity. This reduces your profitability, while also making it harder to perform effectively.
Calculating IT TCO is crucial for effective IT planning and budgeting. It provides a holistic view of IT spending, allowing you to identify hidden costs and make informed decisions about technology investments.
By understanding the full cost of ownership, businesses can compare different solutions, optimise resource allocation and justify IT expenditures to stakeholders.
TCO analysis can also help identify areas for cost reduction and improve the overall efficiency of IT operations. Ultimately, calculating TCO enables better financial management and maximises the return on IT investments.
TCO is a valuable tool for IT decision-making. By comparing the TCO of different solutions, organisations can choose the most cost-effective option that meets their needs. TCO analysis can justify IT investments by demonstrating the long-term financial benefits.
It can also help prioritise IT projects and allocate resources effectively. Furthermore, TCO can inform technology refresh cycles and help organisations optimise their IT infrastructure for cost efficiency. By considering the full cost of ownership, businesses can make smarter IT decisions that align with their overall business goals.
TCO can be a powerful tool to justify IT investments to management. By presenting a clear and comprehensive TCO analysis, you can demonstrate the long-term financial benefits of the proposed investment. Quantify the potential cost savings, increased efficiency and improved productivity. Compare the TCO of the proposed solution with the status quo or alternative options. Highlight the return on investment (ROI) and how the investment aligns with the organisation’s strategic goals. A well-prepared TCO analysis can strengthen your case and increase the likelihood of securing funding for essential IT projects.
In today’s digital age, IT has become an indispensable component of businesses across all indu...
If you’re looking to lower your total cost of ownership while getting the IT resource your business needs, speak to our expert IT consultants to find out how we can help.
