PC Acquisition Value For Money Efficiencies

1
PC AcquisitionValue For Money
Efficiencies IT Panel

• Stuart Campbell
• Head of Information Systems

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History 5 years ago!

• Inconsistent approach to Personal Computers
  across the authority
• PC replacement not planned or effectively
  budgeted for
• Large number of failing PCs preventing major
  projects moving forward (e.g. SHARP, TWWW)
• Incompatibility and varying age of PCs leading to
  increased support costs and reduced productivity
  of users

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Current Position

• All PCs from single supplier - DELL
• 3 year replacement cycle
• Leased arrangement with budgets in place
• Managed by HBS and Corporate ICT
• Installations undertaken by Serco to fixed
  standards

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Are We Paying Too Much?

• High Street deals not operable in the HCC
  networked environment
• All PCs acquired via CBC consortium arrangement
• For comparison we have recently reviewed costs
  from range of suppliers for comparable kit
  ranging from 510 to 725 per desktop
• Currently paying 586 for Dell standard desktop
  to meet specification requirements
• However, market moves fast and there are other
  considerations

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Other Considerations

• Single supplier arrangement
• Single support skill set
• Incompatibility issues reduced
• Servers from same supplier
• Support overheads kept to minimum
• Advantages of chasing the market are lost if
  support costs escalate

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Is Leasing Still Viable?

• The position now-
• 3 year replacement programmes in place and
  replacement budgets established
• Standardisation and sign up to corporate
  framework in place. All kit supported under
  single mechanism
• Shift in leased v purchase costs
• Greater volumes of PCs (currently 5969)
• Capital investment required to move away from
  leasing

7
Cost V Savings

• 3 year replacement model-
• 810,900 cost yr 1
• 300,400 cost year 2
• 210k saving subsequent years
• 9 year payback period

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Recommendations

• Make necessary 2 year investment to move to
  purchasing
• Move to fully purchased model within 3 years
• Continue to manage replacement with same
  mechanisms to ensure consistency etc
• Explore feasibility of moving to 4 year
  replacement for some desktops. Not applicable to
  laptops.

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PC Value For Money

• Questions?