BlogWhat You Need to Know About Enterprise Mobility Management and TCO

What You Need to Know About Enterprise Mobility Management and TCO

October 6, 2015, Expense Management, Mobility / Service Support

The enterprise mobility market is predicted to reach $140 billion in 2020, reports Visage Mobile. More importantly, it is becoming a larger part of the IT budget, growing from 5 percent to 15 percent. Mobile technology provides significant productivity benefits to the workforce, it is often difficult to determine the total cost of ownership (TCO) in an environment filled with personal devices, changing mobile tech and inefficient enterprise mobility management.

Total Cost of Ownership for Enterprise Mobility

Enterprise mobility costs are typically divided between device costs and ongoing service costs. The capital expenditures (CAPEX) cover smartphones, tablets and associated accessories primarily, but luckily, the Bring Your Own Device (BYOD) trend helps limit CAPEX expenses if BYOD policies are adopted. IBM found that a given company could either purchase 1,000 enterprise-owned tablets, or use the savings for the operating expenses of 2,745 BYOD tablets. Another expense CAPEX covers is the cost of deployment, which includes any customized development required for integrating mobile solutions and other non-recurring fees.

The operation expenditures (OPEX) costs for enterprise mobility cover service plans for the device, subscription fees for software and apps, maintenance and support, mobility management and monitoring and any other ongoing fees associated with the organization’s mobile devices.

How to Optimize Mobile TCO

Both CAPEX and OPEX costs can easily get out of control for enterprise mobility rollouts, as Appcelerator found 85 percent of enterprises do not have a single leadership position handling mobility issues. Instead, this responsibility may be put on the CFO, CIO, CTO or other positions outside of the executive level entirely.

Even if an enterprise does not have singular control over its mobility strategy, there are a few ways it can optimize mobile TCO. One problematic mobile scenario occurs when multiple mobile service providers are used for redundant services, or are not used at all. Creating a list of approved client devices and services helps streamline how many vendors are in-place, which can also reduce billing complexity for ongoing services. Enterprise telecom management strategies and services address these issues. For example, telecommunications management companies may offer a cost accountability feature to identify ownership and track consumption of IT services.

Another optimization method involves improving mobile productivity. In some cases, using an enterprise app store with pre-approved apps designed for specific workflows can improve productivity. Custom-designed apps may also serve as a way to get the most out of mobile devices. Enterprise management solutions can help administer an enterprise app store and provide other ways of optimizing mobile TCO.

Chargeback is another example of how a telecommunications expense management provider can truly define costs and savings. A chargeback happens when a purchaser asks a card issuer to reverse a completed payment. TEM providers can provide chargeback management, which allows customers to conveniently access billing and financial information and remit payments using a web browser. This eliminates the human interaction required to monitor and take corrective action against delinquent and inactive accounts, which reduces operational costs and improve productivity.

Enterprise mobility is an upward trend, but many companies have a hard time understanding the TCO associated with mobile technology. Gaining insight into the CAPEX and OPEX costs, as well as optimizing how much the enterprise is getting for its costs, is an important aspect of harnessing the benefits of mobile.

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