How Long Should Your POS Terminal Last?
In recent decades, the concept of ‘Total Cost of Ownership’ has developed into a key criterion for business decision makers, allowing them to better calculate the true value of equipment or systems that are being recommended. This important cost-benefit analysis allows management to arrive at a superior conclusion that has a more positive impact on their organisation over a longer period of time.
Broadly speaking, Total Cost of Ownership (or TCO) considers the purchase price, ongoing maintenance and other related costs, along with factors such as the longevity of the product. Those factors are then weighed against the benefits that are generated by utilising the proposed solution. Other elements can also be anticipated when estimating the TCO, including the staffing requirements, and environmental and social impacts of the proposal.
One particular challenge that arises when calculating the TCO of a system that involves new or advancing technology is estimating the long-term impacts of a previously unknown concept. For instance, can the expected operational life of the proposed innovation be realistically calculated? And how long will it last before the technology involved is again superseded?