9.3 Computer 9.3 Computer System SupportSystem Support

Total Cost of Operating Total Cost of Operating Computer SystemsComputer Systems

Total Costs of Ownership (TCO) – costs of installing, operating & maintaining

• Includes– Purchasing & installing SW upgrades– Diagnosing/repairing HW, SW, network problems– Replacing HW, SW– Electricity & A/C– Training users & tech support– Staffing/running tech support depts

Example 1Example 1Janis Markets, Inc has 96 desktop computers.

In March, Janis spent $64,222 on replacement computer parts. $30,707 on the labor to replace the parts $9229 on SW upgrades, and $6783 on the labor to upgrade the SW. What was the total spent on parts, upgrades, & labor? What was the avg spent per machine?

Tech SupportTech Support • Outsourcing – some companies hire outside

firms for tech support

Example 2Bi-State Forms, Inc has 1864 computer users.

They wish to provide a ratio of tech support personnel to computer users of 1:50. How many tech support people will they need? If tech support people avg salaries of $4800 a month, what should be budgeted for their salaries for the year?

Wrap It UpWrap It Up