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Tight budgets and limited expertise often keep small organizations from making effective IT decisions.

However, understanding hidden technology costs can actually help you reduce unnecessary expenditures and reallocate resources to more important business functions.

However, simplifying your IT infrastructure and management processes will increase efficiency, expand productivity and significantly reduce your TCO. As you can see from the pie chart, an unmanaged or poorly managed desktop PC costs more than ,000 per year.

When factoring in associated network costs, such as firewalls, storage, servers, routers, printers and internet connectivity, estimates exceed ,500 per PC annually.

Use the decision tree below to help determine whether the software costs should be capitalized or expensed.

Nearly two-thirds of small businesses and organizations are expected to buy new IT equipment this year, replacing one in four office computers.

For all software project costs exceeding

Tight budgets and limited expertise often keep small organizations from making effective IT decisions.

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Tight budgets and limited expertise often keep small organizations from making effective IT decisions.

However, understanding hidden technology costs can actually help you reduce unnecessary expenditures and reallocate resources to more important business functions.

However, simplifying your IT infrastructure and management processes will increase efficiency, expand productivity and significantly reduce your TCO. As you can see from the pie chart, an unmanaged or poorly managed desktop PC costs more than $5,000 per year.

When factoring in associated network costs, such as firewalls, storage, servers, routers, printers and internet connectivity, estimates exceed $8,500 per PC annually.

Use the decision tree below to help determine whether the software costs should be capitalized or expensed.

Nearly two-thirds of small businesses and organizations are expected to buy new IT equipment this year, replacing one in four office computers.

For all software project costs exceeding $1 million, please download the Software Costs – Capitalize vs.

Expense Form, fill it out, and submit it along with the project charter, signed agreement and supporting documentation to Business Affairs Finance and Facilities for Systems Governance Group (SGG) projects and Capital Accounting for non-SGG projects.

million, please download the Software Costs – Capitalize vs.

Expense Form, fill it out, and submit it along with the project charter, signed agreement and supporting documentation to Business Affairs Finance and Facilities for Systems Governance Group (SGG) projects and Capital Accounting for non-SGG projects.

TCO is often overlooked, and unbudgeted, presenting an inaccurate IT spending analysis.IT spending is really a balancing act between hardware, software and services.According to Gartner, strong PC management is the key to overall cost reduction.The more money allocated for direct IT expenditures, such as operations and administration, the less money will be wasted on lost productivity and downtime. Because of declining IT budgets over the last few years, organizations have been forced to hold back on new purchases and temporarily band-aid ailing IT systems.However, pinching pennies on proper infrastructure and management procedures will cost you dearly in the long run.




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