Total Cost of Ownership is one of the most important factors that companies should consider when purchasing new devices. When it comes to upfront costs, it is easy to compare rugged devices vs. non-rugged ones. After all, rugged Android devices are typically 30-40% more expensive than a regular consumer Android. Nevertheless, the overall value and savings that rugged Android devices bring to your operations may easily justify the high initial cost. In this article, we will take a look at why understanding the total cost of ownership is crucial when you want to reduce company expenses – in the long run. 

The real cost of device downtime for your company

Device and IT downtime refer to a time when a mobile device or computer or any part of the IT system becomes unavailable. It can happen for several reasons including power outages, equipment failure, human-made error. software failure, or many other reasons. In various industries, the costs of downtime can have a damaging effect.

Short term effects of device downtime

Financially, companies won’t feel any negative financial impact with device downtime. Usually, momentary effects will include poor productivity, unsatisfactory customer service, or tasks that will remain undone. Due to their transient nature, short term effects of device downtime can seem trivial. However, long term impact can be more problematic. 

Long-term effects of device downtime

Consistent device downtime can result in huge losses for companies. Short term effects can easily snowball into massive and persistent issues. 

  • Loss of software or application – Apps and software can range depending on what industry your business belongs to. With the loss of your software and apps, your team may be unable to communicate, update data, or more. 
  • Loss of data – Data loss can happen at any time there is downtime. Unfortunately, it can have a major negative impact on your business. Furthermore, the loss of data is the primary reason for a range of regulatory penalties.
  • Poor customer satisfaction – Device downtime can easily interfere with providing the right services to your customers. As a result, it is important to maintain a stable infrastructure to ensure that you do not lose present and potential customers.  

One of the best ways to avoid downtime to use reliable rugged Android devices for your operations. Rugged devices are made to withstand a variety of issues like extreme temperatures, exposure to water, dust, and more. 

Total Cost of Ownership: Buying A Commercial Android Device for Your Business

For this example, we will take a look at the possible benefits and issues when you buy a commercial Android device for your business. 

To assess total cost across the ownership, compare devices based on the expected cost of: 

  • Price after negotiations and discounts
  • Financing
  • Depreciation
  • Fees and taxes
  • Repairs
  • Maintenance
  • Downtime 

Initially, a regular Android device may seem like a better option for your company. However, after evaluating the Total Cost of Ownership, a rugged Android device is a smarter choice. The indirect costs of a regular commercial device in a business operation can add up quickly. Commercial devices may need more repairs and maintenance. 

Over time, these repairs, maintenance, and downtime will pile up to cost your business more. Oftentimes, it is easy to think that cheaper commercial Android devices are the best way to go. However, a rugged Android device can easily last longer, require less maintenance, and can support a variety of needs for your operations. 

Total Cost of Ownership Meaning

According to a short blurb by Investopedia, “total cost of ownership (TCO) is the purchase price of an asset (device) plus the costs of operation.” This means gauging the total cost of ownership (TC) represents taking a look at the bigger picture at what and how much the product is and its value is over time. Total Cost of Ownership is a common term among businesses and individuals who are looking to purchase assets or investments. However, this term originated in the 1980s when companies reviewed their expenses when it comes to software and hardware acquisitions. Today, the Total Cost of ownership is still crucial in any type of business operations.

Total cost of ownership (TCO) analysis can help make critical business decisions.

Rugged Vs Commercial Devices

Total Cost of Ownership plays a crucial role when deciding what type of device your business should use. This is especially true if your operations require your teams to be in a demanding environment. Consumer or personal devices can easily break down when exposed to certain factors. For example, water or dust ingress can cause a mobile handheld to malfunction. Furthermore, malfunction will soon equal downtime – which could mean huge financial consequences.

The answer to choosing between rugged and commercial devices is to understand the actual demands of your business. Overall, teams that require constant connection but also exposed to harsh environments will benefit more when using rugged devices. Conker offers a helpful Total Cost of Ownership Calculator, to help you decide which devices are best for you.