Realizing and Optimizing TCO for Mobility Management

Robby Gupta

Enterprise mobility is an essential factor in improving the productivity of a business enterprise. The 21st-century organizations require their employees to stay connected wherever they are. Remote collaboration is becoming a key norm in reducing costs and improving operational efficiency. This calls for mobility management which is crucial to administer how enterprise mobility operates in the organization.

While mobility management can lead to significant benefits, it also comes with a high cost. Devices for employees comprise a major part of this cost. Large scale organizations face challenges when it comes to the mass distribution of devices for better mobility. Mobility Total Cost of Ownership (TCO) sometimes brings the organizations at the backfoot of their enterprise mobility capabilities. 

Companies don’t have to bear the cost of devices only; several other costs are associated with mobility. Taking a comprehensive look at the TCO will provide an overview of where the major costs are incurred. It enables you to develop efficiencies in day-to-day operations. 

Major costs associated with mobility management

Apart from finding the best plan and most reasonably priced devices, maintenance is the biggest contributor to increasing mobility costs. Finding the TCO must be combined with all the costs associated with implementing mobility. Some of these costs include:

◙ Subscriptions
These include the monthly costs of subscription, telecom plan, overage, auditing,  reporting, and analytics. These are recurring costs and need to be paid monthly. Subscriptions account for nearly 33% of the TCO in mobility management. It is a cost that cannot be eliminated but can be modified based on different plans.

◙ Device Management
Another major contributor to mobility management TCO is the cost of device acquisition, maintenance, upgrades, repairs, and management. These are infrequent one-time costs. However, these costs can be large and should always be taken into consideration.

◙ Support and Administration
This involves managing the assets, services, employee support, analytics, and reporting. These are the supporting service costs which incur with different devices. They are essential to maintain the entire framework of enterprise mobility.

◙ Security
Security costs are another relatively lower but significant costs in TCO mobility management. It includes mobility device management, costs of security personnel, managing security breaches. Security costs are infrequent but security upgrades are continuously invested in.

Read: Best Practices for Enterprise Mobility that Every Organization Should Adopt

By determining the above costs, a company can understand what is increasing its TCO. They can get a clear idea of the specific parts that need to be down-sized. Lowering the TCO can be a challenge if the organization has a vague idea as to what is increasing the costs. But reducing the TCO is a challenging task. Some of the most difficult aspects of reducing TCO are:

◙ Internal Operations Cost
A lot of companies still work with the Move, Add, Change, Delete (MACD) approach. It requires internal personnel that results in increasing the TCO. Their management is not an easy task. Companies still hesitate to switch to software tools for managing these operations. 

◙ Vendor Cost
Vendors are critical stakeholders in the organization’s mobility. They provide benefits but companies need to maintain an equilibrium between the costs and these benefits. Sometimes, the costs incurred break the threshold and increase the TCO.

◙ Unutilized Devices
A large number of devices are unutilized by employees. The 3 major reasons for this are: devices are not used and kept in drawers, employees leave without returning the devices, or the devices are lost or stolen. A good percentage of devices go unutilized, leading the TCO to increase by itself.

◙ Overages
When device usage is not appropriately monitored, companies can face overages and roaming charges. These charges are not visible at first but pile up in the monthly bills and the TCO skyrockets every time.

Optimizing TCO for mobility management

Costs involved in mobility management are extremely high. Enterprise mobility is still in its inception stage but still results in a huge deployment of resources. Mobile devices are essential to streamline business processes and improve efficiency. However, there must be the right tools and applications to manage mobility and reduce costs. Companies are now searching for new ways to improve mobility while mitigating the overall TCO associated with it.

◙ Evaluate the Total Cost of Ownership
What a lot of companies tend to focus on is the monthly subscription fees. Since it’s a recurring cost, it regularly comes to their notice and they focus solely on reducing it. However, these subscription costs are just one piece of the puzzle. If organizations want to reduce the cost of mobility management, they must calculate the TCO every month. This includes determining the costs of device management, support, and upgrades, training costs, personnel costs, productivity tools, etc. If large organizations have several employees on mobility, cutting down on anyone aspect will result in dramatically lower TCO.

◙ Approach mobility management through Automation
Automation is a great way to adopt a proactive approach to events rather than generating a reaction. By automating mobility, organizations can get real-time alerts on device usage, automate mobile services, and eliminate overage costs. Automating mobility management service will reduce TCO and give employees more space to work productively and creatively.

◙ Evaluate automation with service providers
Organizations frequently collaborate with third-party vendors for mobility management support. However, it is not the end of their problems. Third-party vendors can only reduce the problems to a certain extent. Discussing with their service providers, organizations can get a holistic view of what they can do for mobility management. Vendors now provide portals with a unified view and integrating their services with automated mobility management. They understand what it means for organizations to automate mobility. By evaluating requirements with the service provider, organizations have a better chance of knowing which vendor suits their requirements.

Organizations today are becoming increasingly mobile. Employees are working from wherever they want and whenever they want to. However, it has only resulted in productivity improvement.  But TCO is a major factor in determining whether this productivity is efficient or not. Companies must look at the bigger picture and optimize their TCO for a future where enterprise mobility will become standard practice. TechJini is a leading enterprise mobility solutions provider, assisting organizations to reduce TCO with top-notch software integrations and solutions. Contact us today to improve TCO mobility management. 

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about the author

Robby Gupta

Robby Gupta is the head of US operations for TechJini, Inc. He has had varied experiences working in New York, Cupertino, and Bangalore with packaged & amp; custom web and mobile app development for an assortment of industries. His current focus is Immersive Technologies, IoT, AI bots and their applications in the digital enterprise.