The True Cost of Slow Computers (2020 Update)

April 7, 2020

Have you ever wondered what the true cost of slow, outdated workstations and laptops are to an organization?

Here’s some quick stats: It’s been estimated at 5.5 days per year, per employee. That works out to 2.75% of someone’s time, based on an average of 200 work days per year (or 13 minutes per day). Add to this the cost of slow servers, and the problem is dramatically exacerbated. Just to keep this simple, though, let’s break this down a little bit for a typical organization with some aging workstations:

Average Salary – $60,000

Average Hourly Labor Rate (Fully Burdened) – $43/Hour

Time Wasted Due to Slow Computer – 2.75%

Annual Cost of Time Waste – $1,892 per employee

Annual Opportunity Cost of Time Waste – $3,784 per employee

Total Annual Cost of Slow Computer – $5,676 per employee

 

Based on numbers alone, it’s obvious the hardware infrastructure of IT networks does not get better with age. So why exactly do your clients continue to hold onto old hardware? 

It should be glaringly obvious that operating system and application delays add up to lost productivity and ultimately, a liability and risk for your clients. Not only is this frustrating to the person using such programs and the MSP resolving to fix them, but the delays that it causes truly make a difference in everyone’s day-to-day.

The main reasons cited were that business owners “feared new computers would be incompatible with existing internal business applications”, and  “believed computers weren’t running crucial business applications”, or were simply concerned about cost.

Being a MSP that actively seeks to help this issue means you are monitoring systems to ensure that they are always in running and in warranty. The research shows that most small and medium businesses (SMBs) could make significant cost savings just by updating their PCs, but that most continue to hang on to older computers based on a false sense of reliability. 70 per cent of the SMBs surveyed have one of these older PCs. 

Microsoft’s remedy to this is recommending a device modernization strategy, which frankly doesn’t differ significantly from the ALM system our 7000+ partners leverage. The key idea is implementing a recurring, scalable process to monitor aging assets and their warranties, and constantly have a finger on the pulse for renewal and revenue opportunities for the MSP and client. Integrated Asset Lifecycle Management application that helps IT Service Providers sell more & service less by automating the reporting on the age and warranty status of all devices. 

Asset Lifecycle Management provides our partners the ability to proactively monitor and manage hardware refresh as well as warranty renewal sales improving the services, performance, security and budgeting capabilities for clients.

Here’s a look at the pros and cons associated with using ALM and Warranty Master: 

– Kait Huziak

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