Buying Solutions' Total Cost of Ownership (TCO) Calculator

Buying Solutions' Total Cost of Ownership (TCO) Calculator
Introduction
Welcome to the Buying Solutions' TCO Calculator!

This Calculator aims to give an indication of the Total Cost of Ownership (TCO) for a PC or Laptop that an organisation is considering
for purchase.
There are FIVE tabs on this spreadsheet. The content of these are outlined below:
1. Introduction
This is designed as a short introduction to the TCO Calculator. It describes the structure of the calculator and highlights a few key
points relating to each subsequent tab. It is not, however, a substitute for the full Guidance Notes.
2. Structure & Information

The basic structure of the TCO Calculator is covered in this tab. It lists the areas of cost considered within the Acquisition, Operation
and Disposal sections. It also lists some additional information you might want at hand should you wish to complete certain cost
areas.
3. Calculator - PCs & Laptops

This tab houses the main TCO Calculator. Be aware of the following points:
* You will not be able to enter values into the orange fields. These contain the formulae for the calculations and have been protected.
* You will see that there are several 'please select' fields - choose an option from the drop down list provided.
* None of the fields within this calculator are mandatory. If you feel that a particular cost area is not relevant to your organisation, you
may simply move on. However, it is suggested that a note of justification is added.
* Most of the cost areas will allow you to input values either as 'totals' or 'per unit'. If entered as a per unit value, the calculator will
multiply this by the number of PCs/Laptops being bought eg: £450 x 1000 PCs = £450,000.
* Anywhere where you see 'INSERT' cost or item, you may type in a description of the cost you are accounting for.
* If monitors are selected to be included within the main TCO calculation, fields relating to monitors will appear within the energy cost
area. The calculator will assume that the amount being bought and the refresh cycle is identical to that of the
PCs/Laptops. If you wish to consider the monitors separately, Tab 4 will allow you to do so.
Please remember to refer to the full Guidance when completing this section.
4. Calculator - Monitors
This tab offers a simple calculation to assess Monitor TCO. This tab will allow you to either combine the Monitor TCO total with that of
the PC/Laptop total or it can simply stand alone.
5.Guidance
These are the full guidance notes for the calculator. These guidance notes are also available as a word document on the Buying
Solutions' website.
Should you have any comments or feedback regarding this calculator, please let us know by either calling our Customer
Service Desk on 0345 410 2222 and asking for the IT Hardware team or by emailing info@buyingsolutions.gsi.gov.uk
Structure of the TCO Calculator
The main TCO calculator is broken down into 4 main sections: Key Reference Questions, Acquisition Costs, Operation Costs and
Disposal Costs.
This tab outlines the cost areas that have been considered within the calculator and the information a user might need at hand should
they decide to complete particular sections.
Key Reference Questions
This area asks a few simple questions regarding your potential purchase and has 2 functions:
1) For reference purposes eg: is it a PC or Laptop being bought? Are the monitors included or not? etc.
2) To collect key information regarding the number of PCs/Laptops being bought and the refresh cycle appropriate to your
organisation. This will form the basis of some of the later calculations.
Acquisition Costs
Areas included within this section are:
Purchase price
Warranty
Insurance
Delivery
Costs associated with disposal of delivery packaging, if relevant
Set-up (including transition costs)

Hourly rates of technicians responsible for imaging, installation and testing
Service Wrap (free text box)

Any contextual detail you may wish to include
Storage
End-User Familiarisation Training

Average annual salaries for different grades/bands within the organisation
Number of standard working hours per week (appropriate to your organisation)
Number of standard working weeks per year (appropriate to your organisation)
Hourly rate of trainer/technician
Cost of Procurement
Users own calculation relating to the method of procurement to be undertaken eg: OJEU, e-auction, further competition
Cost of invoices/P2P transactions, if relevant
Additional items purchased
Operation Costs
Energy
Power consumption on full power of PC/Laptop in question
Power consumption on standby mode, if relevant
Energy costs paid per kilowatt hour by the organisation in
Average number of working days per year
* Energy Saving Devices
An estimated percentage of how much the energy might be saved on annual basis
Support & Maintenance

Additional staff costs
Accommodation costs for additional staff (desk/computer etc)
*Potential downtime
Average annual salaries for different grades/bands within the organisation
Number of standard working hours per week (appropriate to your organisation)
Number of standard working weeks per year (appropriate to your organisation)
Part 3 - Disposal Costs

Destroy/Recycle
Resell
Money gained from sales per PC/Laptop
Refurbish & Redeploy
Donation
Additional Disposal Costs

TCO Running Total

£0.00
TCO per PC/Laptop purchased

£0.00
KEY REFERENCE QUESTIONS:

Are you buying PCs or laptops? Please Select
Are you buying monitors as well? Please Select
If YES, would you like to calculate this separately, part of the main calculation or exclude? Please Select See Tab 4 - Monitor TCO
How many PCs/Laptops do you want to buy? 10 PCs/Laptops
What is your average PC/Laptop refresh cycle (years)? 2 years
ACQUISITION COSTS:
Purchase price: Total
Fixed price per PC/Laptop OR £0.00 £0.00
Total cost for all PCs/Laptops being bought £0.00
Warranty:
What is the standard warranty on the PCs/Laptops intended for purchase? 0 years
Will this warranty cover the duration of your refresh cycle? Please Select
If NO, do you intend to buy an extended warranty? Please Select
If YES, how many years will it cover? 0.00

How much will this cost you per year, per PC/Laptop? £0.00
Total £0.00
Insurance: Total
Fixed cost per laptop OR £0.00 £0.00
Total cost for all laptops being bought £0.00
Delivery Costs: Total

Fixed price per unit OR £0.00 £0.00
Total delivery cost £0.00
Disposal of delivery packaging

Does the delivery cost include the cost of disposing of all the packaging? Please Select
If NO, how much will it cost to dispose of the delivery packaging for all the PCs/laptops? £0.00
Set-up costs (imaging, installation, testing, transition):
SECTION A
If you know the set-up cost figures for the PC/Laptops, enter them figure into one of the fields below. If not move onto SECTION B.
I know the estimated total cost for setting-up all these PCs/Laptops, it is: OR £0.00 Total
I know the estimated set-up cost per PC/Laptop, it is: £0.00 £0.00
SECTION B
If you do not know your set-up costs, try to estimate them by filling in the relevant fields below:
Hourly rate of
Set-up factor Total time spent
technician Total
1) Create new image 0 hours £0.00 £0.00
2) Imaging machines
How many machines can be imaged in one operation or batch? 1 pcs/laptops
How long will it take to image one batch of PCs/Laptops (hours)? 0 hours
Time taken to image all new machines: 0.0 hours
What is the hourly rate of your technician? £0.00
Total for imaging machines £0.00
Total time spent Hourly rate of

technician Total
3) Installation (of all PCs/laptops) 0 hours £0.00 £0.00
4) Testing (of all PCs/Laptops) 0 hours £0.00 £0.00
Total estimated set-up cost £0.00
SECTION C
Are there any other set up costs to account for? Please Select
If YES, please give details below for inclusion (as a total figure):
INSERT SET-UP COST 1 £0.00
Total £0.00
Transition Costs
Please give details below of any transition costs for inclusion (as a total figure):
INSERT TRANSITION COST 1 £0.00
Total £0.00
Service Wrap
Below is a free text box. You may add any comments relating to the service wrap of the model of PC/Laptop for potential purchase here.
#INSERT COMMENTS HERE#
Cost of service wrap, if relevant: £0.00
Storage
Are there any storage costs? Please Select
If YES please enter the storage cost for these PCs/laptops £0.00
End-user Familiarisation Training
Use the format below to help estimate the cost of familiarising employees with their new systems:
Standard working hours per week 36 hours

Standard working weeks per year 45 weeks
How many staff will need training on the purchased PCs/Laptops?
Average no of
Grade of staff: No. trained Average salary Hourly rate training hrs
required
INSERT GRADE eg:Level 1/Band 1 0 £0.00 £0.00 0
0
Total end-user familiarisation cost £0.00
Approximate hourly rate of trainer £0.00
Total £0.00
Cost of Procurement (enter total figures):

OJEU cost £0.00
Further Competition cost £0.00
E-auction cost £0.00
Paper order to invoice cost £0.00
P2P cost £0.00
Total £0.00
Additional Items Purchased:

Cost per item How many? Total
COST OF ITEM 1 - INSERT ITEM NAME £0.00 0 £0.00
Total £0.00
Total Acquisition Costs £0.00
OPERATION COSTS
Energy Costs
Energy consumption per PC/Laptop on full power (watts) 0 watts

Energy consumption per PC/Laptop on standby (watts) 0 watts
Energy consumption per monitor on full power (watts) 0 watts

Energy consumption per monitor on standby (watts) 0 watts
Hours in use on daily basis 0 hours

Estimated time spent on full power (percentage) 0 %
Number of days in use per year 0 working days
Price paid for energy (pence per kilowatt hour) £0.00 p/kwh
on full power on standby Total

Annual power cost of PC/Laptop £0.00 £0.00 £0.00
Annual power cost of monitor £0.00 £0.00 £0.00
Total Energy Cost for PCs/Laptops £0.00

Total Energy Cost including monitors £0.00
Energy Saving Devices
Are you currently using/intend to use any Energy Saving software or devices? Please Select
If YES, how much is this projected to save you on an annual basis? 0.0 %
Revised Total Energy Cost £0.00
Support & Maintenance
SUPPORT
Do you have an IT support/help desk? Please Select Move onto the 'Maintenance' section
Can the help desk support these PCs/Laptops within the current cost structure? Please Select Move onto the 'Maintenance' section
NO - The IT support/helpdesk cannot support these machines...

Total
If the additional cost of required help desk support is known for the refresh period, enter here: £0.00
OR
Use the suggested format below to help estimate the cost of supporting these extra machines over the refresh period:
Extra staffing costs per year £0.00 Total

Percentage of staff time spent on hardware related help-desk support per year 0 % per year £0.00
Total
Accommodation costs (per year) £0.00 per year £0.00
Other related costs (per year) £0.00 per year £0.00
Total £0.00
MAINTENANCE
Is the maintenance for PCs/Laptops managed in-house or by a 3rd party? Please Select Move onto Section - A B
SECTION A
In-house maintenance
Will the annual maintenance cost increase with the purchase of these new PCs/Laptops? Please Select Move onto Section C
If YES, what additional direct labour will be required?
Enter the annual cost for additional direct labour: £0.00

What percentage of their time will be spent on hardware related work per year? 0 % per year
Total £0.00
OR
Use the calculation below to estimate the cost of additional direct labour:
Number of additional staff required 0

Average salary (per annum) £0.00
What percentage of their time will be spent on hardware related work per year? 0 % per year
Total £0.00
SECTION B
3rd Party maintenance
Will the annual maintenance cost increase with the purchase of these new PCs/Laptops? Please Select Move onto Section C
If YES, are these machines maintained on a fixed cost basis? Please Select
If YES, what is the fixed cost per machine per year? £0.00
Total £0.00
If NO, how will the additional maintenance be costed?
Annual cost Total

Enter the additional annual cost for maintaining the additional PCs/Laptops £0.00 £0.00
OR
Per PC/laptop Total
Enter the additional annual cost for maintenance per PC/laptop £0.00 £0.00
SECTION C
Are there any other support or maintenance costs to include? Please Select
If YES, please list other support or maintenance costs for inclusion (costs per annum)
SUPPORT/MAINTENANCE COST 1 £0.00
Total £0.00
Estimating the cost of lost staff productivity
Do staff have to cope without a PC/laptop if their own needs to be repaired/replaced? Please Select Move onto the Disposal Cost section
If YES, use the table below to estimate the cost consequence of this:
Standard working hours per week 36 hours

Standard working weeks per year 45 weeks
No. staff at Average Annual

Grade of staff: Total
grade Salary
INSERT GRADE eg:Level 1/Band 1 1 £0.00 £0.00
Total Number of staff 1 £0.00
Average annual salary for the organisation £0.00
Average hourly rate of the organisation £0.00
On average, how long must a member of staff go without a PC/Laptop? 0 hours
Potential cost £0.00
Do you wish to add this cost to the TCO calculation? Please Select
Total Operational Costs £0.00
RECYCLING AND DISPOSAL COSTS

Total Number of PCs/Laptops 10
How do you dispose of your end-of-life machines?
Destroy - certified
How many units will you destroy? 0
How much does this cost per PC/Laptop? £0.00
Total £0.00
Resell
How many units do you plan to resell? 0
How much will it cost to resell each unit? £0.00
How much money do you expect to get back per unit sold? £0.00
Total Return £0.00

How many units do you plan to refurbish and redeploy? 0
How much will this cost you per unit? £0.00
Total £0.00
Donation
How many units do you plan to donate? 0
How much will this cost you per unit? £0.00
Total £0.00
Cost per How many

Total
Additional/other disposal costs PC/Laptop PCs/Laptops?
INSERT COST 1 £0.00 0 £0.00
INSERT COST 2 £0.00 0 £0.00
INSERT COST 3 £0.00 0 £0.00
Total £0.00
Total Disposal Cost £0.00

Buying Solutions' TCO Calculator
TCO Running Total

£0.00
Monitor TCO Total

£0.00
Monitor TCO:
How many monitors do you want to buy? 10 Monitors
What is the monitor refresh cycle? 2 Years
Purchase price: Total

What is the fixed price per monitor? OR £0.00 £0.00
What is the total price for all monitors? £0.00
Are there any additional delivery costs? Please Select
If YES - Total
What is the additional delivery cost per monitor bought? £0.00 £0.00
OR
What is the total additional delivery cost for all the monitors? £0.00
Energy
Energy consumption per monitor on full power (watts) 0 watts

Energy consumption per monitor on standby (watts) 0 watts
Hours in use on daily basis 0 hours

Estimated time spent on full power (percentage) 0 %
Number of days in use 0 working days
Price paid for energy (pence per kilowatt hour) £0.00 p/kwh
on full power on standby Total

Annual power cost of monitor £0.00 £0.00 £0.00
Total Energy Cost £0.00
Disposal
Are there any additional disposal costs for the monitors? Please Select
How do you dispose of your monitors?
Total number of monitors 10
Destroy
How many Monitors will you destroy? 0
How much will this cost per PC/Laptop? £0.00
Total cost £0.00
Resell
How many Monitors will you resell? 0
How much will it cost to sell each Monitor? £0.00
How much money do you expect to get back per Monitor? £0.00
Total Return £0.00

How many Monitors do you refurbish and redeploy? 0
Buying Solutions' TCO Calculator
How much does this cost you per Monitor? £0.00
Total Cost £0.00
Donation
How many Monitors do wish to donate? 0
How much will it cost you per Monitor? £0.00
Total Cost £0.00
Additional disposal costs per Monitor

Per Monitor Total
INSERT COST 1 £0.00 £0.00
INSERT COST 2 £0.00 £0.00
Additional disposal cost total £0.00
TOTAL MONITOR TCO £0.00
Do you wish to include this in the TCO running total? Please Select
Guidance Notes
PCs and Laptops
Contents
1. Background Information
2. Structure of the TCO Calculator
3. Guidance for the Main Calculator: Key Notes
4. Guidance for the Main Calculator: Key Reference Questions

4.1 Monitors - Include or Separate
4.2 Number of PCs/Laptops Bought & Refresh Cycle
5. Guidance for the Main Calculator: Acquisition Costs

5.1 Purchase cost, Warranty & Insurance
5.2 Delivery & Disposal of Delivery Packaging
5.3 Set-up Costs (including transition costs)
5.4 Service Wrap
5.5 Storage
5.6 End-user Familiarisation Training
5.7 Cost of Procurement
5.8 Additional Items Purchased
6. Guidance for the Main Calculator: Operation Costs

6.1 Energy Costs
6.2 Support & Maintenance
6.3 Down Time Estimation
7. Guidance for the Main Calculator: Disposal Costs

7.3 Destroy
7.4 Resell
7.5 Refurbish & Redeploy
7.6 Donation
7.7 Additional Disposal Costs
8. Monitor TCO
9. Feedback & Comments
1. Background Information
1.1. Buying Solutions presents this Total Cost of Ownership (TCO) calculator as a suggested means of calculating the
TCO for desktop PCs or laptop computers only.
1.2. The calculator presents the user with an indicative TCO value for PCs and laptops being considered for
purchase. The TCO calculator should be viewed as an indicative comparison and budgeting tool.
1.3. The TCO is a structured approach to calculating the costs associated with a PC or laptop purchase over the
period of its planned deployment. These costs can be direct or indirect, and have been categorised into 3 areas:
acquisition, operating and disposal costs.
1.4. Advantages of TCO

§ TCO is a method of considering the whole life costs of an important asset before purchase.
§ It can be used as a tool when making purchase decisions and/or setting budgets as it raises awareness of the full
costs of PC purchases, accounting for expenses that might otherwise be overlooked.
1.5. Limitations of TCO

§ There is no industry standard formula for what should and should not be included in a TCO calculator.
§ TCO modelling does not account for environmental or social costs and benefits. Nor does it assess risk or how well a
particular technology will satisfy an organisations strategic goals or needs or the opportunity cost of investing in a
particular PC product.
§ TCO focuses on whole life cost reduction and may not be useful for those who need to immediately reduce or cut
costs based on price.
2. Structure of the TCO Calculator
2.1. This TCO calculator for desktop PC and laptops is presented as a MS Excel 2003 spreadsheet.
2.2. The calculator has been designed to be as flexible as possible so that the majority of users can customise it to
reflect costs relevant to their own organisation.
a
2.3. There are 5 tabs at the bottom of the spreadsheet:
TAB 1 Provides an introduction to the tool, highlighting key points for consideration and to cross reference to these
Guidance Notes.
TAB 2 Outlines the structure of the tool and items of information that may be useful for a user to have at hand.
TAB 3 Houses the main TCO calculator and is split into:
· Key reference questions

· Acquisition costs
· Operation costs
· Disposal costs
TAB 4 Offers a basic TCO calculation for monitors for those who wish to consider these items separately from the main
PC calculation.
TAB 5 Contains the full set of guidance for the calculator
3. Guidance for the Main Calculator: Key Notes
3.1. There are two boxes at the top of the main calculator (Tab 3). One shows the running TCO total and will change
as figures are input into the relevant fields. The other gives a TCO cost per unit which the user can compare to the
original purchase price.
3.2. This TCO calculator does not contain any mandatory fields. If a user believes a certain cost is irrelevant to their
organisation it should be left as £0.00. It may be useful if this calculator is to be used in a purchasing decision that a
note be made as to why that particular cost has not been included for reference purposes.
3.3. Most of the cost areas will allow the user to input values either as 'totals' or 'per unit'. If entered as a per unit
value, the calculator will multiply this by the number of units being bought.
3.4. There are several 'please select' boxes within the calculator. Use these to choose an option from the drop-down
list.
3.5. Anywhere where 'INSERT' cost or item is found, the user may type in a description of the cost they would like to
account for where appropriate.
3.6. The fields are colour coded:
§ Yellow A cell in which a user may enter appropriate data.
§ Orange These are locked,protected cells that cannot be altered because they contain core formulae for the
calculations. Users cannot enter data into these cells.
3.7. Users may find that some of the information needed to complete the TCO calculator may be difficult to obtain at
first. However, most of this information can be uncovered by speaking to colleagues within the user’s organisation or
their current suppliers.
3.8. It is recognised that some information is difficult to acquire because it is intangible or difficult to quantify. In such
instances, the user is advised to enter an estimated cost, adding a note explaining their rationale.
3.9. Should any cells show ‘#####’ try extending the column width as it is likely that the figure has become too long to
fit within the current field size.
3.10. The main calculator (Tab 3) and monitor calculator (Tab 4) contain links to the guidance notes on Tab 5. These
links will take the user to relevant sections of the guidance notes.
4. Guidance for the Main Calculator: Key Reference Questions
This section of the tool establishes key information relating the PCs or laptops being bought. It serves as a reference for
the user and also those to whom the final results are presented.
4.1 Monitors – Include or Separate?
4.1.1. Some users buy in bundles, meaning that a monitor will accompany the desktop PC. Others might buy a PC
base unit only and the monitor separately. In the instance of laptops, purchase of a monitor may not be appropriate at
all.
4.1.2. The TCO calculator accounts for these different scenarios as the user has the choice whether to include the
monitor TCO within the overall TCO calculation:
Ø INCLUDE - Bundle: PC + Monitor
4.1.3. By choosing to include the monitor within the main TCO calculation (Tab 3), additional fields relating to energy
costs will appear within the energy section. Please note that the calculator will assume that the number of monitors
being bought is equal to the number of PCs. It will also assume that the monitors have the same refresh cycle. If these
assumptions are not correct users should use Tab 4 to treat monitors separately from the PC base.
4.1.4. Users should then complete the rest of the spreadsheet, being careful to include the cost of disposing monitors
within the figure inputted into the disposal cost section.
Ø SEPARATE – Monitor alone
4.1.5. This is appropriate for users who buy their monitors separately, who are buying a different quantity of monitors
to laptops or just wish to calculate monitor TCO alone. Tab 4 offers a basic format to calculate the TCO for these
monitors. Please see Section 8 – Monitor TCO, for more information.
4.2 Number of PCs/Laptops Bought & Refresh Cycle
4.2.1. The questions relating to ‘number of PCs/Laptops purchased’ and ‘refresh cycle’ form the basis for later
calculations within the acquisition, operation and disposal cost sections.
5. Guidance for the Main Calculator: Acquisition Costs
This section generally contains one-off costs that occur at the beginning of a purchase (Year 1). In many
cases, the figures input into this section will be multiplied by the number of PCs or Laptops being bought.
( Some of the costs covered in this area may not be relevant to a user’s organisation. The user can choose to
move onto the next area.)
5.1 Purchase Cost, Warranty & Insurance
Purchase Price
5.1.1. Users may enter the per unit price paid or quoted for their PC or laptop. The spreadsheet will automatically
calculate the total monies spent and this will appear in the orange field to the right.
5.1.2. Alternatively, a user may enter the total cost for all the machines.
Warranty
5.1.3. Users will be asked about the standard warranty offered on the PCs/laptops being bought.
5.1.4. If the standard warranty provided does not cover the refresh period required, a user may choose to enter costs
relating to extended warranty if desired.
Insurance
5.1.5. This is usually more relevant to laptops than PCs. If a user’s organisation takes out insurance for their
systems, these costs can be included here.
5.2 Delivery & Disposal of Delivery Packaging
Delivery
5.2.1 There are 2 options for inputting delivery costs. Users should choose between:
· Entering the costs as a fixed price per unit (where a supplier may have quoted £X to deliver each PC/laptop)
· Entering the cost as a total figure (where a supplier has quoted £X to deliver all of the PCs/Laptops)
Disposal of Delivery Packaging

5.2.2 Most PCs/Laptops will be delivered in packaging, requiring disposal.
5.2.3 Some users may have a facilities contract in place in which disposal of packaging is included. Users should try
to apportion a cost from any such contract and enter it into the field provided.
5.2.4 Other related costs such as skip hire and manpower costs should also be included if applicable.
5.2.5 When purchasing PCs/Laptops, suppliers can be asked to quote for the removal of packaging or may even
offer alternative means of packaging which may reduce or eliminate this cost eg: racking.
5.3 Set-up costs (including transition costs)
5.3.1 Set-up costs have been divided into several sections. Users should complete either Section A or B, followed
by Section C and the Transition costs if appropriate.
Set-up costs - Section A

5.3.2 This area is for users who know what their set-up costs will be. They may enter a figure a set-up cost either
per unit or as a total figure.
Set-up costs – Section B

5.3.3 Section B has been designed to help users estimate set-up costs by providing suggested areas of cost to
consider:
· Create new image
· Imaging machines
· Installation
· Testing
5.3.4 Each area offers a basic calculation using time taken to perform each task and the hourly rate of the
technician.
5.3.5 However, the calculation for the imaging of machines is slightly different as it accounts for the fact that mainly
organisations choose to image their machines in batches.
5.3.6 If a supplier performs some of these set-up tasks, a user may receive a total cost. This can be entered by
putting the total sum into the ‘hourly rate of the technician’ feild and then entering ‘1 hour’. This will enable the whole
cost to be accounted for.
Other Set-up Costs

5.3.7 This section allows a user to input any other set-up costs that they feel are relevant. Users can label these
costs for reference and are advised to do so.
Transition Costs
5.3.8 This area relates to any cost that may be incurred as a result of moving from one model or brand of PC or
laptop to another. For example, there may be a need to integrate the new machines with the current network
management
5.3.9 UsersSystem.
can list what these transition costs might be and enter their cost as a total figure.
5.3.10 Remember set-up costs and training for end-users are cost areas already present within the calculator
5.4 Service Wrap
5.4.1 The TCO Calculator offers a free text box for inputting any details relating to the service wrap of the particular
model of PC or Laptop being bought, for example install to desk. This is purely for the user’s reference purposes when
comparing across different models of machine.
5.5 Storage
5.5.1 This field should only be completed if it is relevant.
5.6 End-user Familiarisation Training
5.6.1 For the purposes of this TCO Calculator, ‘familiarisation training’ refers to the hardware related training given to
an end user by a member of IT, or other trainer, as a new PC or laptop is being handed over.
5.6.2 This type of training may involve a quick tour of the new system or showing the end-user where certain files
are located and that everything has been transferred from their old machine.
5.6.3 This familiarisation training is often brief, but may be longer in certain instances ie:where a laptop has remote
working capability.
5.6.4 This area is not designed to capture training costs associated with software applications.
5.6.5 Not all organisations will perform end-user familiarisation training and so this cost should only be included if it is
relevant.
5.7 Cost of Procurement
5.7.1 Users should input the procurement costs relevant to their purchase.
5.7.2 If using a procurement organisation, like Buying Solutions’, it is not necessary to input anything into the OJEU
field. However, if a further competition process is run through the procurement organisation - there may be a cost
associated with this. The further competition field will allow users to account for this.
5.7.3 Invoice and Purchase to Pay (P2P) costs are also covered in this section.
5.8 Additional Items Purchased

5.8.1 A user may buy additional items with their PC or laptop. Examples of such items may be laptop cases, spare
batteries, docking stations, extra keyboards or mice.
5.8.2 A user may enter the item description, its cost and the quantity they intend to buy as it is recognised that some
customers may not necessarily want to buy 500 laptop cases for the 500 laptops being bought.
6 Guidance for the Main Calculator: Operation Costs
These costs tend to exist in the first and subsequent years of ownership. The figures input in this section are
normally multiplied over the length of the PC’s or Laptop’s refresh cycle.
6.1 Energy Costs
6.1.1 This section offers a simple calculation to give the user an indication of the energy costs associated with a
particular desktop PC or laptop.
6.1.2 Users should input data specific to their organisation and working practice regarding the number of hours in
use per day and the number of working days per year.
6.1.3 It is recognised that PCs or laptops within an estate may not be operating on full power for the entire working
day.
6.1.4
· For those users who wish to account for this, they can enter the power consumption of the machine on standby
mode and estimate the percentage of time the machines are on full power.
· For users who wish to assume the worst case scenario (all machines are always on full power), then 100% should
be entered into the estimated time spent on full power field and no figures should be input into the standby mode fields.
6.1.5 If monitors are to be included within the main body of the TCO calculation (see 4.1), then the power
consumptions for the monitors should also be added.
6.1.6 Suppliers should be asked to provide information relating to the power consumption of their products for both
full power and standby modes.
Energy Saving Devices

6.1.7 Energy Saving hardware and software is readily available. This area offers those who have such energy
saving devices to account for their use and the effect they may have on power costs.
6.1.8 Users should input a percentage figure to reflect the savings those devices might bring on an annual basis. By
completing this field, the TCO calculator will revise the initial total power cost to reflect what is entered.
6.2 Support & Maintenance
6.2.1 Both the support and maintenance section assumes that annual costs incurred will remain the same for each
year of the refresh cycle. If this is not the case within the user’s organisation then they may account for any
increase/decrease within Section C - additional support and maintenance costs.
Support
6.2.2 This area relates to support costs, such as the provision of an IT helpdesk facility, aimed at resolving basic
hardware queries.
6.2.3 The most important question asked here is whether the current help desk, if relevant, can cope with the
machines being bought.
· If the procurement is a simple swap-in swap-out exercise, there may not be a need to expand this facility and so
there will be not additional cost for this. If this is the case, users should enter ‘yes’ and move onto the next cost section.
· If the procurement in hand will expand the current estate of PCs or laptops, it may be the case that current cost
structure may not support them. In this instance the ‘no’ section allows users to either put in a total figure or use a basic
format to estimate what this cost might be.
Maintenance
6.2.4 Maintenance options are split to consider users who manage their maintenance in-house or via a 3rd party.
In-house
6.2.5 The key question here is whether the current in-house team, if applicable, can cope with the maintenance that
may be required if these PCs or laptops are bought. This section follows a similar format to the support section so
please refer to 6.2.2.
3rd Party Maintenance

6.2.6 A question is asked regarding the capacity of the 3rd party maintenance contract in place.
6.2.7 If the current contract will not cover the PCs/Laptops being bought or there is some kind of additional cost, a
user should use one of the two costing options within this section to enter this cost.
Other Support/Maintenance Costs

6.2.8 This section allows a user to input any other support or maintenance costs that they feel are relevant. These
additional costs can be labelled for reference.
6.3 Down time estimation
6.3.1 The cost of downtime forms part of TCO. However, it is extremely tricky to calculate as a buyer would not
necessarily know how often a new PC or laptop might break until they are running them as part of their estate.
6.3.2 This section provides a simple calculation to account for downtime and will indicate a cost consequence for
having inadequate levels of support and maintenance in place
6.3.3 Users can choose whether to include this cost within the TCO calculation or exclude it whilst keeping the
information within the tool for reference.
7 Guidance for the Main Calculator: Disposal Costs
This section helps users consider and budget for the disposal of the PCs or laptops being bought. It is a one
off cost that occurs at the end of a refresh cycle and should not be forgotten.
7.1 There is an orange box at the top of this section which will automatically reflect the amount of PCs or Laptops
the user is buying. It keeps track of how many machines are left to distribute across the different disposal/recycling
methods.
7.2 For customers looking for a route to dispose of their IT equipment, Buying Solutions offer a Memorandum of
Understanding (MOU) arrangement with the Disposal Services Agency (DSA). Further information relating this
managed service can be found within the ‘Sustainable Solutions’ area of the Buying Solutions’ website.
7.3 Destroy
7.3.1 Users should enter the unit cost for the recycling or destruction of the PCs or laptops as well as how many are
to be disposed of in this way.
7.4 Resell
7.4.1 It is recognised that it can be difficult to predict what the resale value of a particular model of PC or laptop
might be at the end of its life.
7.4.2 If a user feels unable to provide an indication of this future price, then disposal suppliers should be approached
for an estimated figure.
7.4.3 This section will ‘credit back’ any money made on the sale and reduce the overall TCO figure.
7.5 Refurbish and Redeploy
7.5.1 This section is for those customers who believe they may keep some of their computers following
refurbishment.
7.5.2 User should enter the per unit cost for refurbishing and redeploying the PCs or laptops as well as how many
are to be disposed of in this way.
7.6 Donation
7.6.1 Some organisations choose to donate their machines to charity or their local community
7.6.2 Whilst donating IT equipment may support the organisations Corporate Social Responsibility (CSR) agenda,
there will be a cost for doing this, such as the machines will need to have data removed in line with guidelines.
7.6.3 The user should enter the per unit cost for donating the PCs or laptops as well as how many are to be
disposed of in this way into the fields provided.
7.7 Additional Disposal Costs
7.7.1 This section is a ‘catch-all’ basket for a user to include any other costs relating to disposal that have not been
covered. For example, grinding down hard disks or additional transport costs relating to disposal.
8 Monitor TCO
This section is for users who wish to calculate Monitor TCO separately (Tab 4).
8.1 The top of the screen shows the entire TCO total (for the main PC/laptop calculator) and directly below is the TCO
calculation for the monitors.
8.2 This tab is useful for those who buy their monitors separately or whose monitors have a different refresh cycle to
the PC or laptop being bought.
8.3 If the monitor refresh cycle is different to the PC/laptop refresh cycle – users should consider whether they wish the
monitor TCO total to be included in the final total. Two different refresh cycles may skew the final figure.
8.4 There is a box at the bottom of the page which will allow the user to include or exclude the monitors in the overall
TCO total.
8.5 The monitor TCO tab (Tab 4) is a simplified version of the main TCO Calculator tool. It covers:
· Purchase Price

· Additional delivery costs
· Energy costs
· Disposal costs
9 Feedback & Comments
9.1 Buying Solutions are always happy to hear your views on the work we do so that we may improve our service to our
customers.
9.2 Should you have any feedback you would like to share with us regarding the TCO calculator, please contact the IT
Hardware team through the Customer Care Team on 0345 410 2222 or email info@buyingsolutions.gsi.gov.uk
9.3 Remember there may be amendments/new versions of this calculator in the future so check the Buying Solutions
website regularly for any updates and/or improvements.

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Buying Solutions' Total Cost of Ownership (TCO) Calculator

Welcome to the Buying Solutions' TCO Calculator!

2. Structure & Information

3. Calculator - PCs & Laptops

Structure of the TCO Calculator

Key Reference Questions

Set-up (including transition costs)

Service Wrap (free text box)

End-User Familiarisation Training

Additional items purchased

Support & Maintenance

Part 3 - Disposal Costs

Refurbish & Redeploy

Additional Disposal Costs

TCO Running Total

TCO per PC/Laptop purchased

KEY REFERENCE QUESTIONS:

Are you buying monitors as well? Please Select

How many PCs/Laptops do you want to buy? 10 PCs/Laptops

What is your average PC/Laptop refresh cycle (years)? 2 years

If NO, do you intend to buy an extended warranty? Please Select

If YES, how many years will it cover? 0.00

Delivery Costs: Total

Disposal of delivery packaging

Set-up costs (imaging, installation, testing, transition):

Time taken to image all new machines: 0.0 hours

What is the hourly rate of your technician? £0.00

Total for imaging machines £0.00

Total time spent Hourly rate of

Total estimated set-up cost £0.00

#INSERT COMMENTS HERE#

Cost of service wrap, if relevant: £0.00

End-user Familiarisation Training

Standard working hours per week 36 hours

How many staff will need training on the purchased PCs/Laptops?

Total end-user familiarisation cost £0.00

Approximate hourly rate of trainer £0.00

Cost of Procurement (enter total figures):

Additional Items Purchased:

Total Acquisition Costs £0.00

Energy consumption per PC/Laptop on full power (watts) 0 watts

Energy consumption per monitor on full power (watts) 0 watts

Hours in use on daily basis 0 hours

on full power on standby Total

Total Energy Cost for PCs/Laptops £0.00

Energy Saving Devices

Revised Total Energy Cost £0.00

Support & Maintenance

NO - The IT support/helpdesk cannot support these machines...

Extra staffing costs per year £0.00 Total

If YES, what additional direct labour will be required?

Enter the annual cost for additional direct labour: £0.00

Number of additional staff required 0

3rd Party maintenance

If NO, how will the additional maintenance be costed?

Annual cost Total

Estimating the cost of lost staff productivity