Is your organization managing or mangling its technology assets

Is your organization managing or mangling its technology assets? With the amount of valuable data that resides on computer hardware ever increasing and the cost of technology related activities remaining  a significant component of information technology IT budgets,  organizations need to consider several vital points when setting  policies and establishing procedures for managing technology. In the January 2007 issue of Strategic Finance, an article by Ron Mano ma·no    n. pl. ma·nos  A hand-held stone or roller for grinding corn or other grains on a metate. [Spanish, hand, mano, from Latin manus, hand; see manner.]  and me  titled "Do You Know Where Your Computers Are?" posed the following question: "Are companies tracking these technology  assets?" We simply stated that "many aren't." Now I'll explore that question and its answer in this article by  revealing the results of a survey that asked various entities to  disclose their current technology asset management practices. These results and supporting research form the basis of several  recommendations that may help your organization better manage and  safeguard technology assets and lower total cost of ownership TCO 1 Total Cost of Ownership The cost of using a computer. It includes the cost of the hardware, software and upgrades as well as the cost of the inhouse staff and/or consultants that provide training and technical support. See ROI. .    Total Cost of Ownership     The cost of acquiring technology assets is only one element of  their total cost. Take Apple's iPad, for example. Business and technology analyst Jack Gold stated in his March 4, 2011, article,  "iPad 2: Apple's Missed Business Opportunity," on  VentureBeat.com that "while the end-user sees a price tag of $500  to $800 per device, they are often unaware of the true cost of deploying  an iPad into the organization. This TCO is a direct result of what  companies must do that individuals don't have to. They have to pay  for infrastructure, deployments, device management and technical  support." The TCO model includes both direct and indirect costs Indirect costs are costs that are not directly accountable to a particular function or product; these are fixed costs. Indirect costs include taxes, administration, personnel and security costs. See also Operating cost. Table 1 shows how Gartner, the IT research group that popularized the management  accounting term in the technology area in 1987, described the components  of TCO in its 2010 research article, "Desktop Total Cost of  Ownership: 2011 Update." Table 1: Components of TCO  GARTNER'S TOTAL COST OF OWNERSHIP   DIRECT    Hardware, Software, and  COSTS     Facilities                                     Hardware                                     Hardware Maintenance                                     Software & Maintenance                                     IT Software                                     Data Center                                     Allocation                                     Electricity, etc. IT Operations                                    Tier 1 Technical                                    Support                                     Tier 2 Technical                                    Support                                     Tier 3 Technical                                    Support                                     Security                                     Desktop Management            Administration                                     Administration                                     Management                                     User Training                                     IT Training                                     Disposal   INDIRECT  End-User Costs  COSTS                                     Training                                     Fixing                                     Downtime    According to according to  prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Gartner, effective asset management can cut the total  costs related to the acquisition, support, and disposal of desktop  hardware over its lifetime by nearly 43% see Table 2. Gartner's cost estimates also show that end-user indirect costs can range from  nearly 48% to 65% of TCO. In 2008, Gartner had altered its TCO model and began utilizing four levels of IT asset management that all have an  impact on how much organizations spend on technology annually. The terms of Gartner's new TCO model are defined next. Table 2: Asset Management Reduces TCO  PC DESKTOP        DIRECT  END-USER  TOTAL COST  SAVINGS  ENVIRONMENT       COSTS     COSTS         OF                                      OWNERSHIP   Unmanaged per     $2,038    $3,757      $5,795  year   Locked and         $1,724    $1,586      $3,310   $2,485  Well-Managed per                                42.9%  year   Source: Gartner Research    Unm  Find out more on  computer accessories,