Real SMB IT: Understanding Costs
September 16, 2009
You just bought a car.
You know that the purchase price you just paid is not the last word in the costs of operating that car.
You know that there is insurance, licensing, fuel, maintenance that all have to be considered when calculating the full operational cost of that new vehicle.
Unfortunately, too many SME’s don’t take that same due diligence when purchasing IT hardware or software.
Larger software applications can be as expensive as a car, yet we look at the one time purchase price and then forget about the rest.
If you want too truly understand your cost structure in supporting IT, you must include (and maintain!) the same operational costs considerations you made buying the car.
In the case of IT those operational costs can include license maintenance, application or server administration, and end user support among other costs.
And keep a record of those costs!
Five years from now, those operational costs are still going to be there!
Yet too often we think that we spent that money five years ago, nothing has changed!
Well, you may be partly right – maybe nothing has changed, that includes all of those operational costs.
The SMB Takeaway
You won’t be able to truly identify the benefits of an IT investment, if you don’t record its costs over time. Because you can’t manage those costs if you don’t know where they are.
You can get updates to this blog by clicking the RSS icon on the Home Page!