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Digital Workplace

3 Tips on how to calculate total costs

It is almost impossible to calculate the overall costs of IT for a single workplace using conventional procurement and usage models. The latest digital workplace concepts can provide transparency.

What is the cost of an employee’s IT over the entire lifecycle?

Only few budget holders will be able to answer that question. Of course, prices can be compared at the time of purchase and support and maintenance contracts can be agreed to cover part of the running costs.

CFOs regularly rack their brains over these and similar questions as they make calculating the total cost of ownership (TCO) of a device more difficult:

  • But which of the devices provided does the employee actually use?
  • How much time and effort must the IT department spend on administration and maintenance?
  • How often does the hardware need to be repaired?How long is it actually used for?
  • What is the residual value at the end of the lifetime and can it be recovered?
  • What happens to any sensitive data stored on the equipment?


Below are three tips that will help you to get a grip on these uncertainties:

1. Consider the entire lifecycle: Every asset runs through typical lifecycle phases, from procurement and rollout to actual use and disposal or remarketing. Only by taking into account and planning for the entire lifecycle can you make sustainable budget decisions.

2. Consider the entire workplace: Smartphone, tablet, laptop, PC – an employee’s digital workplace often comprises a range of devices with their own procurement, rollout, and maintenance processes. How much and for how long each one is being used is often unknown. A realistic analysis of the TCO of a digital workplace requires a holistic view of the employee’s IT equipment and its use. This is the only way to decide whether it is more cost effective to buy or to opt for a customized business concept.

3. Work with the right service provider: As a rule, manufacturers and service providers sell equipment and agree contracts that provide them with the best margins. What’s more, they often only take isolated aspects of the digital workplace into account, which raises the question whether their recommendations and offers are actually the best fit for your individual needs and whether the procurement and usage model will pay off.

“We from CHG-MERIDIAN always consider the entire lifecycle. We will work in your interest, find the right mix for your individual usage profile, and come up with a financing strategy that does not put a strain on your balance sheet and optimally spreads the total cost over the lifetime.”
David von Thienen, Digital Workplace Sales at CHG-MERIDIAN

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Feel free to contact us in case of questions!

Lukas Wojoczek

Digital Workplace Sales

David von Thienen

Digital Workplace Sales

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