Why TCO concept is so hot now


Hewlett Packard is upbeat about its Total Cost of Ownership concept, which it believes enables organizations manage costs and improve efficiency.

HP ProCurve Networking Business Country Manager for South Africa, Lorna Hardie, said in today’s competitive world, where every organization managed costs to improve organizational efficiency, Total Cost of Ownership (TCO) was an important concept which needed to be underlined and discussed.

She said that during the recession, customers became more cost-conscious and started opting for products that offer them a better TCO.

“Organizations will continue to look at reducing costs in these times of intense global competition, and this would imply not just the cost of procurement. TCO has become a central consideration so that the reduced cost of ownership becomes a competitive advantage for organizations,” the company said from South Africa.

“In the current economic climate, organizations large and small across all industry sectors are looking for value for money and businesses face difficult choices when aiming to reduce costs and remain competitive. CIOs need to work with industry experts who fully understand the challenges they face and have the experience to deliver best in breed solutions for them”, said Hardie.

She added: “As industry experts, clients look to consultants to identify vendors that will save them money not only on the initial purchase price but on the ongoing cost of managing, supporting and upgrading their equipment”.

Hardie commented that networking solutions must help to reduce TCO by offering the industry’s most comprehensive lifetime warranty, with next-business-day advanced response and best effort replacement for as long as clients own the product.

“A high price/performance ratio means that products deliver the same functionality as other industry vendors, but often at a much lower cost”.

The HP executive recommends free software upgrades and support features such as self-help tools, which are available 24/7 on the web, email and telephone support and central management tools which enable networks to be managed centrally and remotely, freeing up network administrators’ time and saving money on travel costs.

by Savious Kwinika