Life­cy­cle cost is im­por­tant, not just ini­tial pur­chase price


When mak­ing pur­chas­ing de­ci­sions, it is im­por­tant that en­ter­prise or­ga­ni­za­tions take into ac­count life­cy­cle. We are see­ing a num­ber of or­ga­ni­za­tions that fo­cus on ini­tial pur­chase price which ends up cost­ing the or­ga­ni­za­tion more than other more ex­pen­sive so­lu­tions within a cou­ple of years of pur­chas­ing.

“Make in In­dia” as an ini­tia­tive is pick­ing up steam fast. There are large OEMs who are look­ing at ini­tia­tives in terms of us­ing large lo­cal fa­cil­i­ties to do some amount of in­te­gra­tion of the prod­uct in In­dia, to meet the cri­te­ria de­fined by the govern­ment. This will be more preva­lent in govern­ment es­tab­lish­ments wherein there are clear cut ad­van­tages for bid­ders whose prod­ucts meet “Make in In­dia” norms.

Dig­i­tal In­dia as an ini­tia­tive again will mean a high level of op­ti­miza­tion and im­prove­ment for govern­ment en­ter­prises as this will mean much bet­ter trans­parency for the citizens of the country with re­spect to any of their com­plaints, pay­ments, reg­is­tra­tions and many such mat­ters. With re­spect to en­ter­prise, we be­lieve there is al- ready a high level of dig­i­ti­za­tion that is al­ready in place. It will only be more fruit­ful for en­ter­prises to com­mu­ni­cate and in­te­grate bet­ter with govern­ment or­ga­ni­za­tions.

In re­cent years there has been a move to­ward big data. In­tel­li­gence and an­a­lyt­ics and other means of pro­cess­ing and ob­tain­ing in­sight from vast quan­ti­ties of data will in­creas­ingly be­come a fo­cus for govern­ments and large en­ter­prise or­ga­ni­za­tions.

There is no way to fu­ture-proof an or­ga­ni­za­tion as the rate of change when it comes to tech­nol­ogy is ever-in­creas­ing. With this in mind, it is im­por­tant to man­age ex­pec­ta­tions and en­sure the cus­tomer has a plan for the fu­ture and is able to im­ple­ment a so­lu­tion that de­liv­ers value and en­ables their or­ga­ni­za­tion.

For the en­ter­prise there are few sim­ple things to con­sider: Life­cy­cle cost is im­por­tant – don’t make your de­ci­sions on ini­tial pur­chase price alone. See se­cu­rity as an in­vest­ment – not an ex­pense – as the dam­age from un­der­in­vest­ing will be many times of what you save. En­gage with ex­perts who know and un­der­stand tech­nol­ogy when con­sid­er­ing your next in­vest­ment.

Country Man­ager – In­dia & SAARC, Al­lied Te­le­sis

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