Total cost of ownership is a model that's constantly sought by businesses in all areas of what they do. Making cost efficient decisions, with a known outcome that saves money over time is often good business.
How this translate into buying mobile devices for your workforce consists of an in depth look into whether buying typically more costly rugged hardware up front, pays dividends over time.
This guide explains how Raptor rugged devices not only improve TCO for your business, but how the return on investment is quicker too.
Fortunately there are many studies conducted by some of the world's most influential analysis companies, in particular VDC and Gartner who have a lot of the answers for us.
VDC, has in fact shown, that buying rugged devices, with a far greater initial purchase price, can save up to 51% when compared to buying non-durable consumer devices.
The differences are largely down to:
Typically rugged devices suffer from far less issues and breakages, which in turn mean less repair costs over their life time.
Costs such as networking/contract purchases needing renewal and software updates required where consumer phones are updated.
Covers theft or loss of desirable consumer phones, loss of business due to hardware failure.
So one might be forgiven for thinking that buying a classic rugged device will save money over time, and in fact it should do. However the story isn't quite that simple.
Many of the savings figures quoted on TCO are based upon 5 year device lifecycles. As you reduce the number of years you keep devices, the savings also decrease. In today's modern business world, 5 years is a long time to be relying on the same technology.
Classic rugged devices are still largely based on out dated operating systems, older technology and also make many other compromises when it comes to their design and usage.
Repair costs and services aren't as cheap as many would believe. It is common for simple repairs to be in excess of £500, with a 6 week turn around for many rugged suppliers.
Of course rugged devices are expected to have a higher initial price. However this can be eye watering, often as much as 3 or 4 times the cost of a consumer device, which can remove accessibility of the technology for some businesses.
Mobile working is no longer the domain of just large corporates, who can afford huge initial cost implications to attain TCO. Most businesses are smaller, need to be more agile and some adopting BYOD mean we're talking about individual workers costs here too. The initial cost of rugged devices is simply too high for these to either afford or have tied up over a 5 year term.
Put short, does the classic rugged TCO model fit the majority of businesses or individual in today's modern world?
There's a clear gap developing here, however there's fortunately also a clear solution developing from a new breed of rugged solution providers.
Hybrid rugged phones are as rugged, if not more rugged than classic rugged devices, however they also don't have the typical compromises that rugged devices bring either.
Device pricing is often comparable to and even lower to consumer options.
Repairs are cheaper, faster, contract-less or TCO options. The new breed of rugged supplier is also agile and changing quickly to customer's needs.
Lower initial costs mean that businesses can achieve real ROI far quicker than 5 years, often in as little as 12 months, giving them options to either save money by adopting longer ownership, or innovating by refreshing mobile devices more quickly.
Software, is easy to keep current than on classic mobile platforms, so ongoing costs are reduced.
Direct to market hybrid suppliers are in control of their whole supply chain, so they can make decisions quickly, provide any kind of service and support they need to, whilst having a local base of experts for help and advice.
As a reseller for many years, we have years of statistics on how most rugged suppliers have performed through our own support desk and we can prove how our Raptor range has at least as good repair statistics.
Raptor devices are typically between half to 3 times less expensive than classic rugged devices, yet they perform at least as well.
They reach ROI in a far lower time span, we buy them back at the end and they enjoy a far greater level of support considering the zero entry fee for that support.
We think it's time to challenge the classic TCO model. Try a Raptor and you'll see!