Total Cost of Ownership

Total Cost of Ownership

Dell Relationship Products and Total Cost of Ownership

Dell assists organizations in reducing TCO and increasing return on investment through a number of our product lines. OptiPlexTM  desktops, LatitudeTM  notebooks and Dell PrecisionTM workstations make up Dell's comprehensive portfolio of PCs designed and managed around your organization's IT needs. Dell's enterprise solutions, PowerEdgeTM  servers and PowerVaultTM  storage systems, empower your enterprise to gain business advantage by optimizing your technology infrastructure. And Dell's printing solutions work on all fronts to reduce the total cost of printing for your business.By deploying these products and following Dell's recommendations for managing the technology lifecycle, we can help your organization to lower its total cost of ownership (TCO) over time.

Every organization that uses technology, no matter what size, can benefit by viewing IT expenditures from a Total Cost of Ownership perspective. This means looking beyond the costs of the end-user hardware, and considering other associated costs such as the following:
  • Additional Capital Costs - software, IT support software and network infrastructure.
  • Technical Support Costs - hardware and software deployment, help desk staffing, system maintenance.
  • Administration Costs - financing, procurement, vendor management, user training, asset management.
  • End-user Operations Costs - the costs incurred from downtime and in some cases, end users supporting other end users as opposed to IT technicians supporting them, which can be very costly.

Finding $5.6 Million: A Pioneering Project to Lower TCO

Eastman Chemical took a bold step in the direction of its IT management. With the stated goal of lowering its total cost of ownership, the company turned to Dell to replace 100% of its installed PCs worldwide. Gone were over 540 different kinds of desktops and notebooks. In their place were two standard client configurations comprised of Dell OptiPlex desktops and Latitude notebooks. Using Dell's Custom Factory Integration services, the systems were configured with company-standard software images. The results for Eastman Chemical were dramatic: after standardization, Eastman's annual out-of-pocket acquisition and support costs were reduced by $5.6 million. In the years since, Dell has continuously improved our focus, as well as expanded product and service offerings, to help customers lower TCO.

Dell Lowers TCO

Dell takes a holistic approach to IT management, viewing the process as a continuous lifecycle. The phases of the lifecycle are:

The Dell Direct Model can add value at every phase of the IT lifecycle. As Eastman Chemical's example shows, Dell relationship products, service and support provide end-to-end lifecycle solutions that work to lower TCO through each phase of the product lifecycle. Read on to learn how.

Next: Planning to Lower TCO

Total Cost of Ownership

TCO Fundamentals
Plan
Purchase
Deploy
Maintain & Manage
Replacement Strategies & Service
Relationships Products & Services
Determine Client Product ROI

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