Scoping a Corporate Procurement Strategy for Personal Computers

Introduction

This report looks at the key issues facing Chief Procurement Officers (CPOs) and others responsible for purchasing PCsboth desktops and laptopsin medium and large enterprises.

Scope

*Analysis of how to develop policies that leave companies better equipped to reduce costs while also maximizing productivity and innovation.

*Examination of the various ways in which PCs are utilized as usage patterns can have a significant impact on the total cost of client computing.

Highlights

In a total market (hardware and software) worth around $300 billion, 41% of PCs were bought by companies and organizations employing more than 100 people.

The overall PC policy in an organization is almost always owned by a combination of Human Resources, ICT and Finance Departments, while 'hidden IT' functions in departments and branch offices always play some sort of role in deployment and costs.

For those involved in negotiating budgets and making purchasing decisions, it is not advisable to curtail spending at all costs. Rather successful procurement is a question of supporting the usage policy and securing the lowest cost for the chosen strategy.

Reasons to Purchase

*Make substantial savings and increase productivity by addressing personal computer (PC) procurement issues effectively.

*Understand PC procurement cycles, how to calculate the total cost of ownership, and finance future PC procurement.


Report Highlights

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Overview 1
Catalyst 1
Summary 1
Executive Summary 2
PCs are general-purpose tools with often unpredictable usage patterns 2
Experience of traditional PC procurement will be of limited benefit in the coming years 2
PC sourcing strategies should be formed in partnership with HR and IT departments 2
'Client computing' becomes the relevant procurement framework 2
Diverse inputs and options must be evaluated to maximize client computing ROI 2
Table of Contents 4
Table of figures 5
PC Replacement Cycles 6
A successful PC policy needs to balance issues of freedom and control 6
For PC procurement purposes it is important to classify uses by status and function 7
General-purpose are easier to address than special-purpose devices 7
User expectations for client device differ by generation 7
PC procurement policies need to address much more than the hardware costs 8
The consequences of poor PC procurement policies 8
PC Replacement Cycles And Procurement 9
The 'normal' five-year replacement cycle 9
The recession and the 'elasticity of replacement' 9
The costs of maintaining old and implementing new PCs 10
PC discovery processes 11
Laptop and desktop PC differences 11
Shifts in operating systems and applications force change 11
Green issues in the recycling and disposal of old client devices 12
Calculating the total cost of your organization's PCs 13
Electricity is typically an unmeasured cost 13
The costs of stolen and lost equipment and data 13
PCs, mobile handsets and VDI software - accounting for convergence 13
Cutting support costs through product standardization 13
Multi-national purchasing and currency issues 14
Financing PC Procurement 15
Fair market value and full payout leases 15
'Bring, buy your own' - company PC allowances 16
Managed desktops services 16
Outright purchase 16
Maximizing PC discounts through eAuctions and volume discounts 16
APPENDIX 18
Definitions 18
Methodology 18
Further reading 18
Ask the analyst 18
Disclaimer 18
List of Figures
Figure 1: How recycling and repurposing are creating a new 'disposal channel' 10

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