Since the first Gartner report and the rise of the concept of total cost of ownership (TCO) for desktop PCs, things have changed in the desktop market. For one thing, on the local front, technology costs have declined over the past few years while speeds and capacities have improved, and new products have been released to market.

Gartner says that as hardware has become less expensive and more powerful, technology infrastructure has become more complex and organisations are keeping their PCs longer. In addition, new technologies such as wireless LANs (WLANs) are changing people's work styles. The company therefore has updated its TCO study.

Gartner notes: "TCO consists of direct and indirect costs. Direct costs include the capital costs of acquisition, administration and operations (for example, service desk and maintenance). These costs are generally within the IT budget and can be directly attributed to the PC. Indirect costs reside outside the IT budget in downtime and end-user operations (for example, self-support, peer support and casual learning). Our latest updates confirm that changing OS platforms only has a minor impact on desktop TCO and that decreasing hardware costs have been offset by higher indirect costs. On the other hand, implementing desktop management solutions can deliver huge benefits."

The latest TCO model found that the annualised TCO for a PC kept for three years is roughly the same as for one kept for four, five or six years. However, the costs shift from direct capital and IT costs to indirect end-user costs. In addition, the incremental TCO of Wi-Fi varies depending on the type of user and the OS. Windows XP handles Wi-Fi considerably better, resulting in a lower TCO than Windows 2000.

It also mentions the ROI calculation concerning the TCO of notebooks vs desktop PCs. For users who work outside the traditional office environment, the additional cost of a notebook can be justified if the laptop facilitates even a few additional hours of work every week. And finally, a new cost that has arisen recently is the cost of disposing of PCs at the end of their lives. See below: South Africa's 1st ISO-compliant e-waste company launched.



But that is not all

And there are yet more issues affecting TCO. Gartner has also noted that the security holes we all hear so much about also increase the TCO of Windows clients.

"For most companies, deploying a patch means bringing it in house, testing it with a range of typical hardware and critical software, creating new desktop images, updating documentation and help desk scripts, and installing (and often reinstalling) the patch on all their PCs. In many cases, the IT department has had to install the patches manually or rely on users to install the patches themselves. PCs that did not get the patches in time were often compromised, resulting in machines that had to have worms manually removed or even lost data, and the PCs frequently had to be re-imaged."

The analyst company reports that this increases the TCO. "It has not been unusual for managers in organisations without patch management or software distribution tools and processes to report that operations labour costs increased by 15% to 20% because of patch deployment and PC remediation. Companies with PCs that are already considered to be 'well-managed' generally report smaller TCO increases on smaller base costs, making manageability an important factor."

Gartner continues: "We estimate that Windows security vulnerabilities have increased desktop TCO on the order of $200 per user per year, or about 4% for unmanaged PCs. Although that sounds low, hardware costs and many other line items did not increase at all, and, while the overall effect on TCO is low, the effect on certain components is much more significant. The operations category, which accounts for the direct IT labour costs, reflects an increase of 17,2% for an unmanaged PC, which translates into $109 per user per year, or greater than $270000 for our 2500-PC sample environment."



Choose carefully

Of course, selecting the right desktop for the job has a substantial impact on the costs of the system over time. This goes further than merely choosing the right components or software for your computer, to making sure the right system is delivered to the appropriate people. For example, a user with primarily clerical activities does not need a top-of-the-range machine. Providing this user with more than needed will result in the company wasting money on the purchase price and support for features the users do not need. On the other hand, the frustration and time lost by power users equipped with under-performing machines is as wasteful.

Reon Coetzee, marketing manager at Rectron, says: "Although PCs feature the same basic components, they are actually quite unique when it comes to the different marketplaces or level of users they cater for. Chances are that a young gamer is definitely not going to load the latest release of Flight Simulator on mom's PC that she uses to surf the Web and send e-mails."

Defining what the users will need their system for is the first step in ensuring they get what they need without wasting money. A machine tailored to specific requirements is more likely to last longer and assist the user in being more productive - critical issues for those companies planning on keeping PCs for longer.

Coetzee adds that, even though many people would like to rely on their old PC that runs Windows 95 for business use - especially small businesses - they would be mistaken. "Old technology is not good enough when running a business, albeit a small one. Small business generally requires more than the basic user requirements, such as mobility as well as stronger processing speeds and memory."

To cater for the increasing needs of business (as far as their IT is concerned), vendors have started adding more features to their systems to cater for this market. IBM's latest desktop model, the ThinkCentre A51p for example, incorporates advanced performance graphics and enhanced processing power aimed at SME customers looking to run multiple applications simultaneously without overwhelming the PC.

Ronnie Moodley, brand manager at IBM Personal Computing Division, says the A51p comes packaged with IBM ThinkVantage Technologies, tool-less housing and new design features, including innovative front airflow cooling.

"It combines power, security and ease-of-use to minimise dependence on IT staff or user intervention for basic tasks such as deployment, backup and security," says Moodley. "In fact, with the IBM Embedded Security Subsystem - consisting of an integrated security chip and downloadable IBM Client Security Software - IBM PCs are the most secure in the industry, with a hardware and software-based solution that allows users to manage multiple passwords with one master password and keep data secure from hackers or theft."

Moodley says the A51p also includes IBM Rescue and Recovery, a one-button backup and recovery solution that can easily restore previously saved data, settings and applications after a software failure, or help retrieve files that were not backed-up before the failure occurred.

From the Gartner studies, it is clear that one's choice of PC and the associated components makes an enormous difference to the TCO over the life of the system. This is further emphasised by Gartner findings that the annual TCO for a PC kept for three years is roughly the same as one kept for four, five or six years. Choosing your PC with a long-term view is therefore critical for companies aiming at curtailing costs - and that includes most of them.



AcerPower F2 - practical features with expandability

The AcerPower F2, the latest entry-level PC offering from multinational PC brand Acer, offers basic functionality without unnecessary complications ensuring solid performance and maximum value.



The F2 ships with the latest Intel Pentium 4 or Celeron processor, built-in LAN and high-performance memory, delivering superior desktop level performance. It also offers a choice of optical and hard drives, a 20-bit compatible soundcard and amplifier, a 3,5-inch floppy disk drive, Windows XP Professional and Norton AntiVirus. Customers can choose from a range of Acer CRT or LCD monitors and Acer offers users a 3-year warranty, the first year being an on-site warranty, as well as a second and third year carry in warranty, with the option to upgrade to 3 year on site warranty.

Other features include:

1. Six USB 2.0 ports (two on the front) facilitating fast connection to multiple peripherals.

2. Two PS/2 ports are supplied for connecting a keyboard and mouse, while the Ethernet (RJ-45) port enables access to the Internet via an office network.

3. Parallel and serial ports supporting a range of legacy devices using these types of cables are included.

4. Front and rear-access audio jacks simplify the connection of headphones, microphones and line-in audio sources.

5. Three PCI slots maximise options to expand functionality.

6. Drive bays for future expansion.

7. Two DIMM slots for upgrading memory to 2GB of RAM.



South Africa's first ISO-compliant e-waste company launched

The launch of African Sky today marks the advent of South Africa's first ISO 14001- and ISO 9000-compliant electronic waste recycling company. This burgeoning market is the world's fastest growing and potentially most dangerous problem (Wall Street Journal, 23 September 2004).

With a solid Black Economic Empowerment (BEE) infrastructure (African Sky is 52% owned by BEE investment specialist Vuthela Services) and an international relationship with world-leading refinery Citiraya, African Sky is poised to entrench itself in the business of recycling electronic waste (e-waste) such as defunct computers, cellphones and switchboards.

Allan Werth, CEO of African Sky, says there is huge potential for the South African market. "In addition to providing an e-waste recycling service to local companies, we are ideally positioned to work with Citiraya due to South Africa's attractive combination of affordable labour and First World capability," he says.

The world's biggest processor of corporate e-waste, Citiraya was established in Singapore in 1989. It holds recycling contracts with electronics giants such as Intel, Nokia and Hewlett-Packard, commanding a 70% share of the corporate market for scrapped electronics that manufacturers themselves collect and pass on for recycling.

Using its state-of-the-art factory in Benoni, African Sky disassembles the equipment, recycling the plastic and metal components of e-waste locally. The electronic components are shipped to Citiraya where all base materials are recycled. According to Werth, 96% of electronic equipment can be built from recycled material.

African Sky has already set up agreements with cellular service providers, banks, medical equipment suppliers, IT companies and blue-chip corporations in South Africa. "In terms of these agreements, we will manage our customers' total e-waste requirements from collection to sorting and recycling," Werth says.

In addition to addressing the negative impact of e-waste on the environment, African Sky will ensure that its customers comply with e-waste regulations and legislation. The company's processes already conform to existing South African environmental pollution legislation, and it is working with government to guarantee that it complies with future legislation, which is expected to be in line with stringent European Union (EU) requirements.

Johnny Clegg, director of African Sky and a founding member of Vuthela Services, says both organisations are committed to protecting the local environment. "Electronic components are full of toxins, and most electronic junk ends up choking landfills as these poisons seep into the ground. Fortunately, countries around the world are making manufacturers more accountable for their products when they fall out of use and into the global waste stream."

Commenting on the business drivers behind e-waste recycling, Clegg says the EU passed a directive in 2003 forcing electronics manufacturers to take back and recycle up to 75% of the products they sell. "South Africa will soon follow suit, and local companies with international ties are already expected to comply with these requirements," he says.



HP offers five years' guaranteed reliability, upgradability and support

Tarsus Technologies has announced HP's updated DC7100 business desktop. Says Jason McMillan, HP PSG product manager at Tarsus Technologies, "The HP DC7100 has become known as the best choice desktop for the corporate environment because of the stable and long life cycle HP has committed to with this range, as well as the extensive hardware reliability and compatibility testing HP conducts before bringing a new model to market.



"This commitment to a stable configuration base and extensive quality control ensures that hardware drivers are kept common across the different models in the DC7100 range and that internal IT support staff only ever need to be familiar with one set of hardware and driver software," McMillan says.

"Investment protection is becoming one of the key considerations when corporates procure any form of business-centric IT hardware today," McMillan says. "A major benefit brought to the party by the DC7100 in terms of investment protection is the fact that HP has committed to a minimum of five years' support on the DC7100 range. Essentially, this means that the previous iteration of the DC7100 will be supported for the next five years and that parts and upgrades will be available for the same period.

"Besides investment protection, HP's five year commitment ensures that a clear upgrade path is provided for any corporate buying a DC7100 range desktop today. This means that corporates are able to use their computing assets for longer and simply upgrade when more performance is required, rather than buying a replacement computer. This factor greatly assists IT departments in keeping spending down and frees up additional capacity in the overall IT budget, to improve other business critical parts of the company's IT infrastructure.

"HP has chosen to update the DC7100 with the latest technology available today, a factor which ensures that corporates truly get that little bit extra out of their business desktops. While the updated range has only been available for a short time, the demand we have experienced thus far is testimony to the fact that the updated range will surely carry on the legacy of being a firm and reliable favourite of the South African corporate space," McMillan concludes.

http://www.tarsus.co.za