1. Total Cost of Ownership Richard Greene Operations Director Greater Milwaukee Committee Michael Fatica Director ENTECH

2. About Us  Michael Fatica  www.entech.org www.entech.org  Richard Greene  www.richgreene.net www.richgreene.net

3. What is TCO? Just another TLA?  What are the components of TCO?  What do I need to look out for?  What are some of the hidden costs we forget?  Be mindful: 1 out of 25 financial decision makers realized that costs incurred after initial deployment, comprised the largest component of the IT projects costs.

4. Total Cost of Ownership

5. Direct, Identifiable,Planned

6. Total Cost of Ownership Direct, Identifiable,Planned Ongoing Up-Front

7. Total Cost of Ownership Direct, Identifiable,Planned Ongoing Up-Front Hardware Software Installation Consulting Time

8. Total Cost of Ownership Direct, Identifiable,Planned Ongoing Up-Front Hardware Software Installation Consulting Time Telecom Software Licenses and Upgrades Hardware Upgrades

9. Total Cost of Ownership Direct, Identifiable,Planned Indirect, Hidden,Unplanned Ongoing Up-Front Hardware Software Installation Consulting Time Telecom Software Licenses and Upgrades Hardware Upgrades

10. Total Cost of Ownership Direct, Identifiable,Planned Indirect, Hidden,Unplanned Ongoing Material Up-Front Human Hardware Software Installation Consulting Time Telecom Software Licenses and Upgrades Hardware Upgrades

11. Total Cost of Ownership Direct, Identifiable,Planned Indirect, Hidden,Unplanned Ongoing Material Up-Front Human Hardware Software Installation Consulting Time Telecom Software Licenses and Upgrades Hardware Upgrades Training Informal Learning (Futz Factor) Process Modification

12. Total Cost of Ownership Direct, Identifiable,Planned Indirect, Hidden,Unplanned Ongoing Material Up-Front Human Hardware Software Installation Consulting Time Telecom Software Licenses and Upgrades Hardware Upgrades Training Informal Learning (Futz Factor) Process Modification Infrastructure Office Supplies Space

13. Detailed Planning – It’s a Tool  Create A Detailed Plan  Walk through your project with peers or a nonprofit assistance provider  Look at who is on your board. Are there technical people or people with access to I.T. people?  Document the plan  Create a Budget

14. The Blueberry  $485 Personal Digital Assistant(PDA)  Spent $38,000 in hardware, software and consulting time to interface it with his current system.

15. Review the Implementation Budget

16. What if the Budget Proves it is too costly?  Take a phased approach  Network  Workstation upgrades in first six months  Cabling – Look for a slow time for electricians or use students  Purchase the network switches and use peer to peer for the first six months  Structure the project plan so it lends itself to clear milestones that may be used as phases

17. Why TCO?  To save money  To improve efficiency  To grow a healthier organization  Raise awareness of real costs

18. How?  Consider  The People Factor  The Processes  The Technology

19. How->Technology  Central Administration  Pushing App Installs  Central Virus protection  Remote Access  Disk images  Policy Adherence  Automated updates  Group Policies  User security/access levels STANDARDS

20. How->Processes  Standardization  Hardware & Software  Documentation of everything  Computer Logs  Log Problems and Solutions  One consultant  Avoid volunteer 1-time fixes to major systems  Purchasing  Same vendor, in bulk

21. How->People  Training, training, training  For IT Staff & End Users  Every dollar out of training is three-to-five dollars into support  Provide a consistent technology environment.  “We all run Windows 98 SE”  “We all use OpenOffice 1.0”  “We, therefore, build and foster internal expertise”  Orientation/Training manual

22. Summary  TCO affects your bottom line and therefore your clients and your mission.  All costs have an inherent time frame  Avoid focusing on reducing “sticker shock”  Focus on the reduction of ongoing costs more than up-front costs

23. Q&A