Effectively Managing the Cost of Technology

Options for Managing Your Technology Investment

To help run your business smoothly, your company will make significant investments in technologies including: servers, desktops, software, networking equipment and peripherals. These represent a significant expenditure for your business. A few simple steps can help assure that you are taking full advantage of programs and making the most effective decisions throughout the lifecycle of the technology.

Here are a few things to consider:

1. Examine Financing Options – In the acquisition phase, look closely at whether purchasing, financing, leasing, or a combination of the three options makes sense for your business. In most cases the cost of services to configure and deploy the technology can also be financed and bundled into one monthly payment. Also, assure that you are purchasing your technology through a reputable company that provides “new and authorized by the manufacturer” sales. This will protect you from problems you might run into down the road and allow you to get updates or enhancements directly from the manufacturer.
   
   
2. Warranty your Purchases – For financing or leasing, consider aligning the term of the agreement to the warranty period for the technology. This guarantees that you are protected from the manufacturer during the period of time you intend to own the technology. Calculate a timeline based on the amount of time you plan on owning the technology to the time that this technology is considered useful for your business. Anticipate growth and business changes and decide whether or not the technology you are selecting today can carry you through these changes.
   
   
3. Other Costs to Consider – Prepare and budget for other costs to support your technology. As an example the average user will pay 2 to 3 times the initial cost of a laser printer over its useful lifetime in just toner cartridges. In this case, you might want to consider a program such as a Managed Print Service that include these costs in the monthly price which will typically lower the total lifetime cost.
   
   
4. Disposal of Outdated Equipment – Considering your company’s strategy around technology disposal or recycling at the front end. There are basically 3 ways to properly dispose of technology at the end of the useful life:

1. Fair Market Value Sale – selling the technology to generate residual cash.
2. Donation – Donate the technology to a school, non-profit, etc.
3. Formal Disposition – this is done through certified companies that assure the effective disposal of the technology including recycling and reuse of certain components. This option will also assure that any data is destroyed and non-recoverable.

It’s important to remember that the total cost of ownership includes much more than the cost of the technology itself. A little planning on the front end is the best way to assure that you are maximizing your investment and have considered the total lifecycle costs of IT for your business.

How All Covered Can Help

If this is an issue for your business, All Covered provides backup consulting and services for small businesses nationwide.

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Tags: technology, information technology, business, small business