The Total Cost of Ownership (TCO) benefits of Windows Embedded software

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1 The Total Cost of Ownership (TCO) benefits of Windows Embedded software Share

2 What is TCO? Total cost of ownership (in this context) is the total price in money, time, and resources for owning and using software. TCO is considered to be an essential part of the IT decision-making process and a useful metric for assessing the overall cost impact of an investment in a business-critical embedded component or O/S. To properly assess TCO you must look at all of the expenditures that contribute to total costs including those that extend beyond hardware leases and software licensing to include more intangible items such as ongoing maintenance and administration, end-user productivity, and the cost of system downtime. While some decision-makers focus primarily on hardware and software acquisition costs because they are more immediate and tangible, those costs typically represent a small fraction of the total costs usually less than 10% and do not correlate well with overall TCO. The initial acquisition cost should not be the primary factor in determining the best device for a taskoriented solution. TCO can be broken down into six cost categories: hardware, software, training, downtime, staffing, and outsourcing. Evaluating TCO When evaluating TCO you should consider: Acquisition costs Inexpensive comparable products can cost as much or more than Windows to acquire and support. Total costs Even when the costs of other operating systems is comparable, research shows that Windows usually offers a lower TCO because of cost advantages in the other, larger components, such as support staff time and device downtime. Cost vs. Value In addition to what you must pay, companies that are making an investment in IT should consider what they will get in return, including features or capabilities that improve productivity and deliver additional value. Share 2

3 Why embedded? 10 reasons. 1. Embedded operating systems offer tailored, purpose-built intelligent devices, whilst saving as much as 50% compared to standard commercial license costs. 2. With longer-term availability you achieve improved TCO, predictability and peace of mind. 3. Embedded deployment is faster 4. Manageability and reliability is smoother 5. Longer-term support is far more economical than consumer device support. 6. Productivity benefits. Embedded operating systems fit the needs of a vast range of uniquely configured devices; securely connecting data across diverse technologies for increased operational efficiency and security. 7. Most off-the-shelf consumer smart devices are highly capable and can do a variety of tasks. However, while they are generally attractive and compelling to end users, there are many situations where a workforce s productivity may be hindered by such devices. 8. It is difficult or impossible to customise consumer devices to specific workflowrelated tasks that require data gathering (laser scanning, RFID and data entry keypads, for example). 9. Much of the must have functionality many work situations require may be unavailable on consumer devices (extended replaceable batteries and rapid chargers, specialised grips and/or mounts and weatherproofing, for example). 10. Consumer devices are available at relatively low cost. But the initial acquisition cost should not be the primary factor in determining the best device to deploy for a task-oriented solution. Low acquisition costs of consumer devices often actually result in a substantially higher TCO when used by a workforce. Share 3

4 The technical benefits of Windows Embedded Support Research indicates that non-embedded workforce devices can add to the support staff workload by as much as 15%. This represents not only a considerable addition to your TCO, but also requires substantially more help desk and support staff, at a time when most companies are trying to reduce staff and operating costs. Many organisations also require a level of support from device manufacturers that is generally not available from consumer-class providers, including access to an ecosystem of devices, peripherals, specialty components and independent software vendors. The right support is often critical in determining whether a technology deployment is successful. Manageability It is important that any devices deployed by businesses are fully controlled and managed to achieve the lowest possible TCO. It is not acceptable practice to allow end users to modify/alter devices at will, which is often the case with consumer devices. Initial automated provisioning, updating the device software, managing on-board functionality, peripheral support, asset management and recovery; these are all critical issues that must be addressed by an official automated tool set. Embedded solutions provide this capability, whilst most consumer products do not - without substantial investment in third-party add-on toolsets. Security Embedded devices are optimised for maximising data security and preventing corporate data leakage. Any data breach could put your organisation at risk of substantial penalties and must be considered in any workforce deployment. In addition, loss of sensitive or proprietary data can have a profoundly negative impact on customer relations and brand reputation. Windows Embedded devices beat consumer equivalents hands down for maximising security and protecting your TCO. Reliability Research indicates that off-the-shelf smart phones can have a 15%-25% yearly failure rate in field workforce deployments, and in difficult environments, much higher failure rates are common. While the devices themselves may be inexpensive, replacing and re-outfitting them is not, nor is the loss of productivity of the user. In addition, support costs are directly related to device durability/reliability. As such, a purpose built device, although costing more initially, may save hundreds or thousands of pounds in TCO over its lifetime versus a consumer equivalent. Share 4

5 The commercial benefits of Windows TCO Longevity Production-level devices are expected to remain available for at least 3-5 years to optimise ROI. As a result, the rapid change cycle of consumer devices is often at direct odds with corporate needs to maximise ROI and minimise TCO. To support business demands, Windows Embedded products are therefore covered by 10-year support and a product availability of 15 years. Productivity The primary reason to deploy smart devices is to enhance the productivity of your workers. Yet many consumer smart phone devices are not optimised for dedicated functions often needed by a field workforce. The ability to programme and enforce workflows for example, is far more important for productivity than providing consumer-oriented full web browsing, media players and social networking capability. Cost savings It s very likely that Windows Embedded can provide all the features you need, but with up to 50% savings. You pay for the elements you use, nothing more. A trusted partner Avnet Embedded can provide impartial, reliable advice on the best products and solutions to help reduce development time and meet performance, product lifetime and quality mandates. Our specialists are knowledgeable, responsive and resourceful. An additional benefit of partnering with Avnet Embedded is our range of value-added in-house image creation and performance tuning services. Share 5

6 Windows Embedded for Industry Windows Embedded supports factories and plants by standardising embedded devices on one common platform; providing complete product and lifecycle support, reduced development costs, less factory downtime and technology is implemented faster too. Additionally, you ll consolidate hardware and create powerful industry solutions. We can minimise risk and complexity by providing one trusted platform to build industry solutions. Read a Windows Embedded manufacturing case study Share 6

7 Windows Embedded for Retail Windows Embedded creates high-performance, secure devices that easily integrate into existing retail IT infrastructures delivering interoperability, flexibility, and efficiency to point-of-sale, kiosk, digital signage, handheld terminals, and peripheral devices, helping to meet retail challenges head on. Use the familiar Windows user interface, rich tools, and single development environment to reduce development costs. Time-to-market is also reduced. Additionally, the familiar Windows platform helps ease retailer deployment and training costs. Windows Embedded leads the evolution of intelligent systems in retail, powering the development of a wide range of devices that use a common platform. Read a Windows Embedded retail case study Share 7

8 Windows Embedded for Healthcare Due to the increasing demand for connected electronic medical records and IT systems, health providers will continue to search for new technologies while aiming to reduce costs and raise standards. Embedded technology helps decrease your time-to-market for healthcare customers and enables you to deliver a range of cost-effective intelligent systems quickly, to meet their needs. Put simply, Windows Embedded transforms healthcare solutions and devices by enabling connected intelligent systems. Share 8

9 Windows Embedded competitor comparisons Windows Embedded is competitive with, and in some cases offers significant advantages, over its competitors. For example, even when acquisition costs are equal, Windows delivers a lower TCO due to its greater reliability and ease of administration the largest cost component of TCO. Price Ease Software Software Cost Price Hardware Security Open Source Linux Windows Linux variants are often free or Initially the more expensive cheaper than Windows. option Although Linux has improved, Easier than Linux for most users. Windows is still easier to use because of the familiarity of the O/S. Offers a wide variety of software Windows has a much larger programs and utilities. selection of software available. Many of the software programs Some software programs and and utilities available on Linux utilities are free, although most are freeware, open source, or need to be bought. low cost. Linux will not support most Windows has a much larger hardware devices. However, for support for hardware devices the hardware devices that have and almost all hardware driver support, they will usually manufacturers will support their work in all versions of Linux. products in Windows. Linux is secure but can be Previous concerns, yet Microsoft attacked. has made great improvements over recent years. Many of the Linux variants and Windows is not open source programs are open source and and the majority of Windows enable users to customise or programs are not open source. modify the code. Support Vast amounts of online documentation and help, available books and support. Windows includes its own help section, has vast amounts of online documentation and help, as well as books on each of the versions of Windows. Source: Share 9

10 Windows vs Linux TCO testimonials After conducting a comprehensive six-month evaluation, we found that the Microsoft solution was 24% better than the IBM/Linux solution in terms of total cost of ownership. Randy McCoy, Chief Technology Officer, CheckFree By choosing Windows over Linux for our new SAP APO solution, we ll save an estimated 650k in software, staffing, and support costs over the first four years. We needed performance, security, and reliability at a reasonable price, and Linux would have presented greater risk in all those areas. Rick Dempsey, Chief Information Officer, Rayovac Our analysis showed that the upfront cost/benefit of Linux was quickly overcome by other cost factors, such as the higher cost of managing an open-source operating system across 5,800 stores. When we compared the TCO of Windows Server 2003 to Linux, we found a 20% cost differential in Microsoft s favour. Keith Morrow, Chief Information Officer, 7 Eleven At Avnet Embedded, our goal is plain and simple: to help you develop high performance, high quality fixed function devices. With over 100 years combined experience of selling Windows Embedded, gained from advising customers all over Europe, we truly are the Windows Embedded experts. Contact us If you are interested in finding out more about the benefits of working with Avnet Embedded, get in touch we d love to hear from you. Follow us 10