The way that people – especially the owners of small- and medium-sized businesses (SMBs) – speak about total cost of ownership (TCO) would make you think that the term has been around forever.
However, the concept of TCO, as it exists now, did not really come into being until the end of the last century, when the IT revolution started to pick up speed.
What Is TCO?
Once upon a time, the cost of owning a product did not go very far beyond its purchase price. But in the case of machines, things can get a little more complicated, as they must be installed, repairs are sometimes needed – and they consume materials and electricity. In the case of sophisticated devices, you often need to pay people to teach you and your staff how to use them.
TCO nowadays refers to a device’s purchase price plus all the extra implementation and management costs needed in order to keep it going.
Before you buy an IT-related product for your company, you have to do a little financial planning to understand what a device is going to cost you in the long run. After all, if you keep your office tech’s TCO low, or find ways to reduce it, you could end up freeing up budget for innovation.
The Real Cost of IT Solutions
One of the first mainstream media references to the term can be found in a New York Times article from 1995 about using PCs at work.
The article talks about how the hardware and software in a typical client-server system “amounts to at most 30 percent of the cost,” with the rest comprising “configuration, network management, training, support and other intangible expenses.”
Even back in the mid-1990s, before offices had become the hub of modern technology that they are now, analysts had already understood that TCO would become important – especially for SMBs.
Vanquishing Your TCO Printing Demons
Although the idea of accurately calculating TCO sounds like a financial headache, SMB owners will be relieved to learn that when it comes to printing TCO, help is at hand.
As explored in a previous article on this site, Samsung Printing Solutions devices are optimized to help SMBs keep TCO down with lower power consumption and maintenance costs.
The company has won awards from Buyers Laboratory for its printers’ energy efficiency, while Industry Analysts Inc. has recognized the company for its MFPs’ reliability in passing the one million pages test. After all, reliable devices require you to make fewer calls to engineers – costing you less money for repairs and reducing costly hold-ups in the production process.
And with the RemoteCall app, available on the Android-based Smart UX Center, you can even get remote assistance from experts. This useful troubleshooting tool often eliminates the need to call out an engineer – instead letting you resolve problems faster and more effectively.
Consumables and spare parts are also more affordable with Samsung. Jonghyuk Bae, president of Woo Jung Copy Center in Jeonju, Korea, recently explained, “Toner, consumables and replaceable parts are all much more economical than those of rival companies. And despite this cost-efficient package, Samsung doesn’t compromise on resolution quality or scanning speed.”
Getting TCO Right
Even now, a time when TCO has become a buzzword for all IT decision makers, some people are still only looking at up-front price before buying. However, successful SMBs know that when deciding on new IT platforms for their organizations, it is vital to assess all costs involved in that platform’s entire lifecycle – both direct and indirect.
Companies like Samsung Printing Solutions have long realized this, paying attention to SMBs’ needs and overheads when developing products and solutions. Reducing your company’s TCO matters – and that is why its remains Samsung’s number one target.
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