Looking Beyond Acquisition: Total Cost of Ownership and the Role of Enterprise-Class Devices
A Motorola Solutions Whitepaper
www.motorolasolutions.com
Introduction
The high cost of using
consumer-grade hardware
for enterprise-class needs
For companies investing in mobile technology,
consumer-grade PDAs and smart phones have
undeniable appeal. At one-half to one-third the
price of enterprise-grade hardware, buyers may
be tempted to accept the high failure rate, thinking
they would have to replace a consumer-grade
device three times over (which feels unlikely)
before they could justify the cost of buying a
more rugged, enterprise-class device.
This simple analysis can be deceiving — and
ultimately expensive. Hardware acquisition and
replacement costs pale in comparison to the true
costs of a device failure in a business setting. For
consumer-grade devices, more than 90% of the
total cost of ownership (TCO) comes after the
initial hardware purchase (figure 1).1
By far the largest contributors to TCO in a
business setting are the lost productivity, and more
significantly, the lost revenue opportunities, that
result when a mobile device fails. Depending on
your industry, a device failure can result in:
- a second trip to complete a service call,
doubling the cost of service
- a missed sale
- a delay in payment on goods you’ve delivered
- gaps in regulatory compliance
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