2. Computer System Support

3.   The costs of installing, operating and maintaining computer systems are called total costs o ownership or TCO  TCO includes 1) purchasing and installing software upgrades; 2) diagnosing and repairing hardware and software, and network problems; 3) replacing hardware and software; 4) paying for increased power and air conditioning; 5) training users and technical support people; 6)staffing and running technical support departments. Total Cost of Operating Computer Systems

4.   Janis Markets Inc. has 96 desktop computers. In March, Janis spent $64,222 on replacement computer parts, $30,707 on the labor to replace the parts, $9,229 on software upgrades and $6,783 on the labor to upgrade the software. What was the total spent on parts, upgrades and labor? What was the average spent per machine? Example 1

5.   $64, 222 + $30,707 + $6,783 = $110,941 Total Spent  $110 / 96 = $1,155.64 Average Spent per Machine Solution

6.   Carlson School District owns 2,189 desktop and notebook computer systems. Last year, it spent $415,390 on replacement parts and equipment, $288,083 on software upgrades and $793,112 on repairs to their systems, user training and help for their users. What amount was spent on technical support per computer system? Example 2

7.   The average monthly electricity costs for running the desktop computer systems of Johnston-Wembly Corporation were $63,890. The company estimates that they can save 22% of that cost if the computers are turned off at night, weekends and holidays. How much do they estimate they can save a year by turning off their desktops? Example 2