Download Analysis Policy

CYBER SECURITY FOR
EDUCATIONAL LEADERS:
A GUIDE TO UNDERSTANDING AND
IMPLEMENTING TECHNOLOGY
POLICIES
Chapter 2
Total Cost of
Ownership
© Routledge
Richard Phillips and Rayton R. Sianjina
TOTAL COST OF OWNERSHIP (TCO)
 The
“real” cost of technology is a multitude of
expenses.
 The
electricity that runs the computer, the cables
that connect the computers, the tables to set the
technology upon, the Internet access to let the
students explore the global nature of the Internet;
all Total Cost of Ownership, or TCO.
 Costs
© Routledge
are a mix of direct and indirect costs.
TOTAL COST OF OWNERSHIP (TCO)



Indirect costs are administrative expenses not directly
attributable to the technology purchase or technology
operation. Referred to as “overhead costs.”
Direct costs would include equipment acquired for and
directly attributable to the execution of a project.
Estimates of costs above and beyond the actual equipment
purchase lie between 10–25 percent of total cost.
© Routledge
TOTAL COST OF OWNERSHIP (TCO)


Four cost categories: equipment costs, operation and
maintenance costs, equipment disposition costs, and
non-operational costs.
IT specialist has to decide between owning the
equipment or leasing the equipment. Which is more
cost effective to the organization? A 3–5 year effective
life span that may be required to be in operation for 10
years? Or a 5-year upgrade that will have extra
operational costs every 5 years?
© Routledge
TOTAL COST OF OWNERSHIP (TCO)

Operational technology can include equipment racks, wired
and wireless routers, servers for connectivity, email and
video, software and memory for system backup and
protection, RAID and various memory technologies, and
technology management/automation software.
© Routledge
TOTAL COST OF OWNERSHIP (TCO)



Operation and maintenance costs include cost of wiring
and interconnectivity, the cost of maintaining the
technology warranty and possibly an extended warranty,
the cost of software and software licensing, etc.
Electrical = the per hour cost of running a typical computer
and monitor $3 times (X) number of computers in the
system 20, 50, 100 times (X) number of hours 40 hours, 50
hours or 24 hours system runs at full power for a week’s
Times (x) 5 days = estimated electrical cost.
Next, add the cost of running the system at reduced
electrical usage in the overnight hours.
© Routledge
TOTAL COST OF OWNERSHIP (TCO)

IT system security management requires maintaining
an accurate inventory of technology, an accurate
accounting of both potential system threats and
incurred system threats, OS system patch
management, consistent client and information
cleanup and deletions, consistent monitoring for virus
outbreaks, monitoring unauthorized access attempts,
monitoring hacking-related and Malware attacks, and
management of compliance with state and federal laws
and standards.
© Routledge
TOTAL COST OF OWNERSHIP (TCO)



Disposition costs would include
the peripheral costs of operating
the new technology.

Computer tables and computer
chairs would be considered
disposition costs.
The cost of appropriate lighting,
the cost of lighting installation ,
the cost of installing electrical
outlets for the area where the
new technology will be housed,
© Routledge

the cost of the square footage for
the new technology area, the cost
of climate control for the new
technology area, the cost of
peripheral technology for the
new technology area (projector,
Smart board, whiteboard, LCD
screens),
the cost of physical computer
lock-down, and the cost to install
and maintain a security system
for the new technology are all
examples of the disposition costs
that need to be calculated into
the Total Cost of Ownership.
TOTAL COST OF OWNERSHIP (TCO)



Non-operational costs can be defined as all those costs
that are necessary, but not directly connected, to the
operation of the new technology. One of the major nonoperational costs that educational systems tend to
neglect when considering TCO is training.
Insurance: state, federal, and granting agencies require
insurance to protect against theft, damage, and
catastrophic loss.
Technology needs to be audited and inventoried on an
annual basis requiring non-technical personnel to
perform the accounting.
© Routledge
TOTAL COST OF OWNERSHIP (TCO)


IT specialists need to be able to calculate and predict the
cost of unexpected down time in the case of electrical,
technological, or other catastrophic failures and what would
be the cost of temporarily renting or leasing technology to
maintain operations.
Calculating the cost of replacement is often ignored in TCO.
Replacement will require man hours, transportation, and
disposal costs that will need to be paid in order to make
room for new technology.
© Routledge
CONCLUSION
Together with best practices these are the
foundations of sound technology integration in our
schools:

Effective leadership styles

CAI,CMI, and CEI

TCO
© Routledge