Determining TCO

IT services providers in Los Angeles can help you more accurately determine Total Cost of Ownership (TCO), allowing you to find the option which returns the greatest value for the least expense. There are quite a few hidden costs to consider. Consider a basic server.

Associated Expenses

If you’ve got a server that costs $10k, you’ll end up spending much more to use it over time. First, you’ve got transport, then you must have somewhere you can transport that server to, which likely requires rental. The server must be installed and configured. Throughout the course of its operational life, troubleshooting will be necessary and maintenance and upgrade. You’ll need additional connectivity, which will require cords, wireless solutions, routers, etc.

You’ll need interface software, and then there’s the cost of energy–electricity doesn’t come out of nowhere, after all. Naturally, management of such a device will likely intone acquisition of either an internal tech professional or technology services from a managed service provider (MSP).

Lastly, you’re going to need a backup solution that is three-fold, that is to say, you’ve got three backups on at least two mediums, one of which isn’t located on-site. When all is said and done, you’ll have to replace that $10k server every 3 to 5 years for greatest cost-effectiveness. It’s not untoward to expect a regular lifespan of such a server to have a TCO of, at a minimum, around $200k over five years. So in this instance, TCO is 20 times purchase price.

Tangent Solutions

Meanwhile, IT services providers in Los Angeles can provide the same utility as a server through an outsourced cloud-based option for a fraction of the cost, and that at predictable monthly rates. Additionally, upgrade expenses are reduced as they happen organically within the organization hosting the cloud.

As a further bonus, using cloud computing solutions through an MSP has a high likelihood of reducing your downtime expenses–and these can cost you $100k in an hour, depending on the size of your business. You’ll also increase employee productivity through increased morale via expedited service delivery.

An MSP can help users fix problems and get back to work quicker than onsite personnel who are perpetually caught putting out tech fires. Lastly, you’ll see increased customer confidence through the right MSP.

Upgrading Operations

In total, advantages of using an MSP include:

• Reduced TCO
• Reduced downtime
• Increased employee morale
• Increased customer confidence

IT services in Los Angeles from Advanced Networks can help your business experience these advantages. Contact us now for more cost-effective technology utility.