Website updating costs
The more money allocated for direct IT expenditures, such as operations and administration, the less money will be wasted on lost productivity and downtime. Because of declining IT budgets over the last few years, organizations have been forced to hold back on new purchases and temporarily band-aid ailing IT systems.
However, pinching pennies on proper infrastructure and management procedures will cost you dearly in the long run.
Use the decision tree below to help determine whether the software costs should be capitalized or expensed.
Nearly two-thirds of small businesses and organizations are expected to buy new IT equipment this year, replacing one in four office computers.
Most organizations believe their direct costs end at the point of purchase.
However, research shows that a computer’s base price typically represents less than 20% of its TCO, with technical support, maintenance and labor costs accounting for the remaining 80%.
In fact, Gartner recently found that a well-managed computer is 37% less expensive than the example above, often saving several thousand dollars per PC, per year.Whether you have an internal IT staff or work with outside service providers, someone still spends time hiring, procuring and managing those relationships.Estimate the # of hours spent on IT oversight and multiply by the appropriate hourly wage.Here are several important ways you can reduce TCO and increase efficiency: Includes initial hardware and software purchases or lease costs, along with software licensing, subscriptions, maintenance contracts, extended warranties, set-up fees, supplies, materials and spare parts.Estimate the # of hours that person (s) spends directly managing IT and multiply by their hourly wages.