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White Paper | October 2005 When LCD Monitors can reduce TCO 1
Saving of up to 10% can
be achieved on an annual
basis when using Philips
LCD monitors together
with Philips SmartManage
asset management tool.
White Paper
When LCD Monitors can
reduce Total Cost of Ownership
For further information about Philips professional monitors
please contact us via www.professional.philips.com
October 2005 - Authors: E.L. van ‘t Hoff & P. T.H.C. van Laer
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| White Paper | October 2005 When LCD Monitors can reduce TCO 2 Content 1. Introduction 3 2. Monitors: vital part of the desktop configuration 3 3. Defining Total Cost of Ownership 4 4. The TCO of an LCD monitor 5 4.1 Acquisition phase 5 4.2 Deployment phase 6 4.3 Operation phase 6 4.4 Retirement phase 7 5. Philips solution for reducing TCO costs 8 5.1 Reducing TCO with Philips LCD monitors 8 5.2 Making further TCO savings with Philips SmartManage 9 6. The TCO of Philips LCD monitors 12 6.1 S
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| White Paper | October 2005 When LCD Monitors can reduce TCO 3 1. Introduction Controlling total cost of ownership (TCO) has been the goal of every good IT manager for the last 10 years. IT managers are well aware that the costs incurred after the initial deployment of a PC network can add up to 80 per cent of total IT costs. But when they are controlling TCO, most decision-makers still focus primarily on their PCs, software and IT infrastructure. Little attention is given to the life-
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| White Paper | October 2005 When LCD Monitors can reduce TCO 4 Some additional facts and fi gures about monitors underline their importance in the overall costs picture. For example: • The purchase cost of an LCD monitor is often more than 50% of that of a standard PC (see Figure 2) • 35% of the power bill of a typical desktop confi guration is accounted for by the monitor. The PC itself only consumes twice as much (see Figure 3) • The theft risk of an LCD monitor is at least
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| White Paper | October 2005 When LCD Monitors can reduce TCO 5 Each of these phases has different cost implications, and their relative importance varies from equipment to equipment. For example, the costs of evaluating and selecting new technology such as wireless LAN are typically higher than those related to desktop PCs. Also, note that TCO measures costs, and not the return on investment or value derived from the investment. For example, TCO will determine the cost of owning an LCD
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| White Paper | October 2005 When LCD Monitors can reduce TCO 6 4.2 Deployment phase Companies typically order their new monitors in batches, stock them at a central point and deploy them on a department-by-department basis. Then the installation engineers go to work, often during the weekend. They move from office to office to unpack, install, test, register and validate all the individual monitors. A number of criteria are important to facilitate this process: • Order to delivery time:
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| White Paper | October 2005 When LCD Monitors can reduce TCO 7 Power consumption: • The monitor represents up to 35% of the total power costs of desktop equipment, so monitor power con- sumption should be as low as possible • A centralized power shutdown mode is recommended. PC power management places the monitor in standby mode, further power savings (typically 3 to 8 watts) can be achieved by shutting down monitors individually or collectively from a central location - especially use
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| White Paper | October 2005 When LCD Monitors can reduce TCO 8 5. Philips solution for reducing TCO costs Philips monitors have always offered outstanding display and ergonomic performance. The result- ing high levels of user comfort and convenience translate into optimum employee productivity and satisfaction. However today’s business environment also demands stringent cost control, and as already explained this means much more than simply looking for the lowest possible initial cost. S
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| White Paper | October 2005 When LCD Monitors can reduce TCO 9 Failures), applying to the entire product. Specifically for the display panel, consistent, fault-free performance over the product lifetime is assured by Philips’ worldwide ‘Perfect Panel’ policy (based on ISO 13406-2 Class 1 standard). ‘Perfect Panel’ is a guarantee that LCD panels will be completely free of pixel defects, eliminating the problem of bright or dark dot defects on the display throughout the warranty period.
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| White Paper | October 2005 When LCD Monitors can reduce TCO 10 Internet Central site Intranet Remote site a Network components accessible with standard asset management platform LCD monitor accessible with Philips SmartManage Remote site b Figure 7: Typical IT infrastructure, including multiple LCD monitors Includes anti-theft measures The popularity and compact size of Philips LCD monitors also make them a ready target for thieves. SmartManage will indicate if displays are moved from
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| White Paper | October 2005 When LCD Monitors can reduce TCO 11 SmartManage SmartManage administrator agent DVI cable LAN PC unit Server Altiris Altiris Notifi cation Server NS Agent Figure 8: SmartManage confi guration set-up Centralized management and control In addition, information about every SmartManage-compatible display – including serial and model numbers, operating hours, settings status and cost-relevant – is transmitted automatically between displays and the asset management sy
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| White Paper | October 2005 When LCD Monitors can reduce TCO 12 6. Calculating TCO costs of LCD monitors A computation of the direct and indirect costs, compiled on an annual basis over a period of three to five years, provides a total cost of ownership figure. The results can be quite telling. This section compares the costs of owning 500 Philips 17” LCD monitors (model 170B) with those of 500 industry-average displays with the same size and comparable display performance specifications.
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| White Paper | October 2005 When LCD Monitors can reduce TCO 13 6.2 TCO breakdown This section provide a TCO calculation for both monitor types over a lifetime of 5 years. A cost breakdown is presented in the table below. This is a simplified calculation limited to measurable figures. Philips Monitor Industry average Acquisition phase Vendor selection costs C 2,176.00 C 2,560.00 Purchase costs C 151,130.00 C 148,750.00 Total C 153,306.00 C 151,310.00 Deployment phase Monitor deployment cos
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| White Paper | October 2005 When LCD Monitors can reduce TCO 14 Related to Philips SmartManage and smart TCO LCD monitors: • Deployment time saving: 25% • Energy saving: 80% • Reduced theft rate: 80% 7. Signifi cant TCO saving with Philips monitors As described earlier, awareness in user organizations of the importance of monitors in the Total Cost of Ownership picture is often limited. In many cases administrators cannot even be sure of the locations of their monitor assets, and these de
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