IDC Study: LAN-based Desktops Cost IT the Most

ENT, March 4, 1998 by Thomas Sullivan

International Data Corp. (IDC, Framingham, Mass.) released a study demonstrating that companies can save on the annual cost per PC by migrating to enterprisewide client/server environments.

IDC compiled "PC Cost to Use: Drawing the Road Map for Desktop Life-Cycle Services Opportunities" by surveying 400 business-unit managers and 200 IS managers as well as conducting interviews and focus groups. The report concentrates on the annual cost per PC, which includes supporting and operating desktop PCs.

PC LAN-based desktop environments cost companies an average of $10,400 per computer annually, while enterprise client/server environments only tax the budget $3,300. "PC LAN is an inefficient system for complex applications and file sharing," says Doug Chandler, senior analyst in IDC's client/server support and operational services research program. "LAN is the first level of networking, so it's not designed for groupware or complex apps."

Organizations that have moved to enterprisewide client/server environments, in which the majority of applications reside on a division or company server and companywide servers, face lower support and management costs than PC LAN-based desktop environments. "In a nutshell, the primary reason for enterprise client/server environments being so much less expensive is that operation services, beyond simple break-and-fix remedial maintenance, are in place in enterprises and that makes for a more streamlined organization," says Chandler.

The operation services Chandler refers to are system management, helpdesk, backup and archiving, and asset management. He also notes that these resources need not be in-house, but they need to be in place. "Companies without in-house resources can use service providers for asset management or backup and archiving, or any other service the company lacks," he add. "Outside providers can lend necessary expertise and resources, which will reduce overall costs."

A common scenario in which outside resources can be invaluable is when a company is migrating from a PC LAN to an enterprise client/server environment. "A company may have the entire IT department employed in migration, which leaves no one for other areas, such as asset management," says Chandler. Because the other areas still need attention, this may be a good time to call in outside resources. The outside service can be hired temporarily to help out with the changes.

An asset management program can make the process of upgrading considerably less expensive. "Having an asset management program in place, as opposed to no control over what software is installed on the computers, will save IT a headache come upgrade time," explains Chandler. The IDC study notes that across most organizations, IS and business-unit managers have firm control over desktop hardware and software purchases. But downloading software from the Internet can subvert such control. "When IS needs to upgrade a company's worth of machines, knowing exactly what software is on exactly what machines makes everything flow more smoothly," says Chandler. "A lot of companies ran into trouble upgrading to Window 95 because they hadn't kept tabs on what software was running on what machines."

The bottom line of the report, explains Chandler, is that companies running a PC LAN-based desktop environment can cut maintenance and support costs considerably. "If companies can make the switch to an enterprise client/server environment, it will be considerably less expensive to maintain and service the desktops in this environment," concludes Chandler.