Huge Cost Inefficiencies

Organizations have spent millions of dollars through its IT and operations sometimes without even knowing where the money has gone. From software licensing issues to inefficiencies with IT service management, the enterprise is losing revenue. There are 4 culprits within an organization’s technology that contributes to huge cost inefficiencies—software, hardware, downtime and distractions of technology.

The Hidden Cost of Technology

Software is typically over- or under-licensed by approximately 30%, which could translate to millions worth of savings. While an initial discovery could uncover these cost savings, unless it is managed with a robust software asset management program and governed by a strict procurement policy, unexpected software costs soar and become excessive.

While it is expected that hardware is that capital cost, the lifetime cost for repair and maintenance of a single PC is as high as $2,162.89*. There is also the additional $128.09 attributed to the loss of productivity incurred per user per PC due to unforeseen downtime such as for shutdowns, reboots and hours. If you view the cost based on 5,000 PCs or 5,000 users, that’s over 10 million spent on the average life of those PCs. Assuming four years as the average lifecycle, those 5,000 machines cost 2.5 million every year. Adding the loss productivity cost, that’s another $160,000 annually.

Downtime Leads to Lost Revenue

Increased incorrect use of technology or failed technology exposes organizations to risks such as downtime on critical applications. In large organizations (with more than 2,500 users), the average downtime has increased by 69% from 8.7 to 14.7 hours per month**.

*According to Gartner.  **According to Harris Interactive
***According to MyJobGroup