By Shahabuddin Amerudin
Conducting a Total Cost of Ownership (TCO) analysis is another important step when considering computer specifications for GIS students. This analysis helps to estimate the total cost of owning and maintaining a computer over a certain period of time, typically several years. Here are the steps to conduct a TCO analysis:
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Identify the costs: Similar to a cost-benefit analysis, the costs of owning a computer include the initial purchase price, as well as ongoing expenses such as maintenance, repairs, and upgrades. In addition, TCO analysis includes other costs such as software licenses, warranties, and energy consumption.
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Estimate the timeframe: Determine the timeframe for the TCO analysis. This may be the expected lifespan of the computer or a specific period of time, such as four years, which is the typical duration of a GIS student’s program.
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Calculate the initial purchase price: The initial purchase price includes the cost of the computer, as well as any necessary accessories such as a case, external hard drive, or monitor.
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Estimate ongoing expenses: Estimate ongoing expenses such as maintenance, repairs, and upgrades over the chosen timeframe. This can be done by researching the typical lifespan of each component of the computer, as well as the expected cost of repairs and upgrades.
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Include software licensing costs: GIS software can be expensive, so it’s important to include the cost of software licensing in the TCO analysis. Consider the cost of the necessary GIS software over the chosen timeframe.
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Include energy consumption costs: Energy consumption can also be a significant cost of owning a computer. Estimate the energy consumption of the computer and the associated costs based on the current energy rates in the area.
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Calculate the total cost: Add up all of the estimated costs over the chosen timeframe to calculate the total cost of ownership.
By conducting a TCO analysis, GIS students can make informed decisions when choosing a computer for their coursework. This analysis helps to estimate the total cost of owning and maintaining a computer over a certain period of time, taking into account all of the associated costs.
The examples without considering energy consumption and the cost of GIS software:
Example 1: Sara is a first-year GIS student at Universiti Teknologi Malaysia. She is considering purchasing a laptop for her coursework. The laptop she is considering has an initial purchase price of RM 3,500, and she expects to use it for four years. She estimates that she will spend RM 1,000 on repairs and upgrades over the four-year period. By adding up all of these costs, Sara estimates that the total cost of ownership of the laptop will be RM 4,500 over the four-year period.
Example 2: Johan is also a first-year GIS student, but he is considering purchasing a desktop computer instead of a laptop. The desktop he is considering has an initial purchase price of RM 5,000, but he expects it to last for six years. He estimates that he will spend RM 1,500 on repairs and upgrades over the six-year period. By adding up all of these costs, Johan estimates that the total cost of ownership of the desktop computer will be RM 6,500 over the six-year period.
While these examples are simplified, they demonstrate how TCO analysis can help GIS students make informed decisions when purchasing a computer for their coursework. By taking into account the expected lifespan of the computer and the estimated cost of repairs and upgrades, students can make a more informed decision about which computer to purchase. Additionally, by including software licensing costs and energy consumption costs in the analysis, students can get a more complete picture of the true cost of ownership over the desired time frame.
Suggestion for Citation: Amerudin, S. (2023). Total Cost of Ownership Analysis: A Guide for GIS Students to Make Informed Computer Purchasing Decisions. [Online] Available at: https://people.utm.my/shahabuddin/?p=6316 (Accessed: 9 April 2023).