Dell PC Deployment Optimization Model

W H I T E P AP E R D e l l P C D e p l o y m e n t O p t i m i z a t i o n M o d e l Sponsored by: Dell Randy Perry Bob O'Donnell January 2007
I D C O P I N I O N PC prices continue to fall, yet the total cost of ownership (TCO) for PCs in business moc. environments continues to be quite high. While the cost of PCs is part of doing cdi. business today, the cost of deploying new PCs can be daunting enough to persuade ww large enterprises to delay upgrading their PC environment and thus delay the benefits w that technology upgrades yield. In addition to the cost of the PCs themselves, 510 companies must also face up to the cost of deployment activities. IDC interviewed 4.5 200 large enterprises about their PC deployment practices and found that, on 39.8 average, the cost of deployment activities was $527 per PC but often ranges to as 05. high as $700 or more. F 002 IDC's research not only tracked the costs of deployment but also identified critical 8.2 deployment activities (staging, logistics, applications loading, user state migration, 78. image loading, program management, and post-deployment support) and specific 805. practices related to those activities. These activities and practices form the Dell PC P Deployment Optimization Model. The research shows that companies that optimize AS their deployment practices enjoy significantly lower costs to deploy PCs, as much as U 1 62% less (over $400 per PC) compared with companies with basic deployment 071 practices. 0 AM , Leveraging Dell's PC Deployment Optimization Model, IDC structured an approach mah for optimizing PC deployment. CIOs can use this research to map out a plan to gni reduce their organization's PC deployment costs while deploying faster and with less mar disruption to workers using PCs. F teertS ne M E T H O D O L O G Y epS 5 The research provided in this white paper is based on interviews conducted in :sr summer-fall 2006 with 200 large enterprises (median = 7,000 PCs) based in North etra America. Companies in this study represent over 20 major vertical markets, including uqd government and education, with no single vertical accounting for more than 6% of aeH interviewees. Companies were asked for information specific to their deployment of lab PCs. The research was designed to test Dell's IT optimization model for PC olG deployment to determine if optimized practices lower the cost of deployment.
I N T H I S W H I T E P AP E R
IDC examines the process of deploying PCs in large enterprises and quantifies the costs for each part of the process. In addition, this white paper provides insight into how deploying certain best practices can reduce these costs.
S I T U AT I O N O V E R V I E W
A quick glance at the enterprise PC market could lead some casual observers to believe that prices continue on such a downward trend that there may come a time when PC hardware is practically free. Of course, the reality is not that rosy, but the fact is, average selling prices (ASPs) for enterprise desktop and notebook PCs have been on a steady decline for over a decade, with price drops averaging around 9.5% annually over the past five years. Looking forward, IDC forecasts ASPs to decline at about a 6% compounded rate over the next five years.
But purchase price is only a small part of the total cost of ownership for PCs in large enterprises. Management costs (IT labor) make up a significant part of the monies that companies spend every year to keep PCs on everyone's desks. Annual IT labor will average $500-600 per PC, while average annual hardware and software costs total $100-160. PC deployment activities can cost as much as $650-700 in certain business environments. Fortunately, our research has shown that deployment costs can be reduced by adopting optimization practices within the area of PC deployment. In fact, it's possible to reduce those costs by over $400 per PC by taking advantage of all the best practices that will be discussed in this white paper. For organizations that regularly deploy thousands of new PCs each year, that can translate into very large sums of money - cost savings that can be directly transferred to a business organization's bottom line. O p t i m i z ... [download for more]