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© 2009 VDC Research Group, Inc.

 

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By preventing the burgeoning costs of 
failure, rugged solutions more than 
make up for their price tag within a five 
year period. 

 

 
 
 
 
 
 
 
 
 

 

There is also the unknown of what the worker could have achieved if they were 
fully productive. These opportunity costs vary depending on industry.  

 

Beyond costs to fix problems, IT departments burdened with fixing devices 
spend less time managing and improving the IT infrastructure.  

 

Soft losses include less implementation of preventative IT actions and less time 
to find better solutions that could improve worker efficiency. 

 

Wireless communication failure causes the worker to spend time reconnecting 
their solution, reloading programs, and reentering data. Session persistence is 
necessary for efficient work. 

 

Wireless communication failure also causes a break in the stream of information 
for backend dispatch systems. Because many make adjustments based on real 
time information, this defeats many of the efficiencies these solutions were 
designed to achieve.  

 

In current recessionary times, VDC recognizes that organizations are looking to 
streamline investments to gain the most bang for the buck. However, ruggedness 
should not be viewed as a ‘luxury-item’ that can be forsaken. By preventing the 
burgeoning costs of failure, rugged solutions more than make up for their price tag 
within a five year period. 
 

 

Exhibit I-2 

Annual TCO Comparison for Notebook Computers: 

Field Mobility Solutions 

 

 

 

 

 

  ANNUALIZED 

COSTS 

 

 

FULLY RUGGED 

NOTEBOOK 

SEMI-RUGGED 

NOTEBOOK 

DURABLE 

NOTEBOOK 

Hard Costs - Deployment Costs 

$1,207.7 

$978.3 

$851.2 

Soft Costs - Operational Costs 

$1,738.3 $2,264.2 $3,717.4 

Total Cost of Ownership 

$2,946.0 

$3,242.5 

$4,568.5 

 

 

 

 

 
*  Assuming a 4 year replacement for fully and semi-rugged notebooks and a 2.5 year replacement for 

durable and consumer-grade notebooks 

 
 

V .  P E R F O R M I N G   AN  A C C U R AT E   TC O   AN A L Y SI S 

 

A TCO model that takes into account the soft costs (i.e. productivity, IT expenses, 
and opportunity loss of failed mobile computers) will provide organizations with a 
more accurate baseline from which they can make mobile and wireless investment 
decisions. While this trend is not new, the recession is adding a new level of 
significance to optimizing every penny.  
 
 

Summary of Contents for Toughbook 19

Page 1: ...LLENGES OF MOBILE COMPUTING DEPLOYMENTS USING TCO ANALYSIS TO IDENTIFY THE IDEAL MOBILE COMPUTING SOLUTION FOR FRONTLINE WORKERS Prepared by David Krebs Director Mobile and Wireless Practice Casey Hol...

Page 2: ...ill provide customers with an accurate baseline from which they can make mobile and wireless investment decisions A critical aspect of any successful TCO analysis needs to include the business element...

Page 3: ...ost of owning a mobility solution can come after the initial purchase This underscores the significance of taking a long term view during the initial selection process Figure A Total Cost of Ownership...

Page 4: ...pplications that can significantly heighten operational efficiencies VDC estimates the total number of mobile workers to have reached 80 million in the United States in 2008 This increasingly mobile w...

Page 5: ...ther reinforcements to protect against drops and spills and integrated mobile broadband radios The result is a blended platform that features a premium price point that can survive semi hazardous non...

Page 6: ...mobile field workers Mobile computers used by these professionals are to varying degrees exposed to a variety of environmental conditions In addition a non deskbound workforce is simply more prone to...

Page 7: ...at work in areas of tiled floors or concrete often demand more active workloads namely not desk work Devices need to be protected against shock to concrete or tiled floors from arm level Depending on...

Page 8: ...with many mobile computing deployments suggests that a there is a large number of users equipped with an inappropriate solution The consequences of these deployments are substantially higher ownershi...

Page 9: ...sts Deployment costs hardware accessories software implementation and training costs Soft costs Operational costs productivity loss opportunity loss and IT support costs of repairs and replacement par...

Page 10: ...0 0 25 50 75 100 1st Year 2nd Year 3rd Year 4th Year 5th Year Figure C Cumulative Mobile Replacement Cycles by Platform Rugged Mobile Computers Non Rugged Mobile Computers Rugged mobile computers are...

Page 11: ...and often frustration for IT staff to support two or three versions of hardware in troubleshooting and purchasing software solutions that work across units Devices bought at subsidized prices at the...

Page 12: ...igned to achieve In current recessionary times VDC recognizes that organizations are looking to streamline investments to gain the most bang for the buck However ruggedness should not be viewed as a l...

Page 13: ...T VDC RESEARCH GROUP VDC Research Group VDC is a technology market research and strategy consulting firm that advises clients in a number of technology markets including Automatic Identification and D...

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