When it comes to IT purchasing, price is not the same as cost

Look, your budgets may be constrained and the business environment complicated, but when it comes to investing in the technology needed to drive your enterprise, purchasing decisions should be guided by far more considerations than simple sticker price.

You also have to consider the value across the whole lifecycle — the total cost of ownership across a device’s usable life. Those costs should also be compared to the benefits, not just of owning the device, but also of the productivity benefits a particular platform might unlock. Each of those broad considerations masks a wider series of conversations, but they’ll do as a starting point.  

A white paper from international cloud-based eCommerce platform, New Black, sheds some light on how to approach tech purchasing comparisons. 

This report looks particularly at iOS versus Android in enterprise retail. But the considerations it raises should translate across other platforms and other industries – and while iOS is seen as the superior choice in this research, it’s not the choice that matters; it’s the thinking that guides the decision that should inform any tech purchaser.

When the price isn’t the cost

The key insight is that sticker price does not reflect true operational cost. If you think about it, you knew this already — do you think those cheap (EOL?) Windows systems currently being hacked at airports have really saved anyone any money? Is a system that costs almost as much to run each year  in terms of support per unit really delivering significant budget advantage?

Does it make business sense to equip employees with technology or systems they don’t enjoy using? How does that make them more productive? And are any of these considerations understood by the purchasing power players at your firm?

Total Cost of Ownership (TCO) matters. The white paper shows us how iOS is cheaper than Android in the long run, more secure, easier to use, and with lower ongoing costs, despite the higher initial outlay. 

Failure and consequence

Investing in tech that works matters when you rely on it for business. 

That’s why it’s important to note that Android devices experience annual failure rates between 12% and 18%, compared to 3% for iOS devices (according to IBM Enterprise Fleet Reports, 2023). Similarly, when it comes to Windows versus Macs, an (admittedly 10-year old) Consumer Reports survey found that while Macs had a 4% failure rate, the top five laptops running Windows systems all failed at least three times as much. (I’d love more recent data if anyone has come across any.)

The thing is, when it comes to tech for your business, the likely failure rate should be as public as the initial price. After all, there are major consequences to business when tech falls down, as these failures create operational disruption, deliver unpredictable support and replacement costs, and can put whole teams out of action while damage control and support operations swing into action. (And don’t forget the likelihood of disappointed clients and missed deadlines.)

Designer security, or secure by design?

That’s just one example. When it comes to Android and iOS, the reality that 9% of global cyberattacks were delivered via mobile devices also means the inherent security of the platforms should be a consideration, along with the relative cost of support. Some claim Android support costs can be up to 80% higher than for iPhones, or that PC users are twice as likely to call support as Mac users?

Of course, making IT purchasing decisions shouldn’t be seen through the lens of platform warfare. But, when it comes to deciding which technologies you’ll use to run your business for the next five to 10 years, the right decision today can and will help build business resilience in uncertain times. 

And getting to the right decisions requires you to answer the right questions. So you should be thinking about support, security, and maintenance costs, as well as pondering price.

Costs beyond cost

It’s not just about costs — there are also issues around sustainability, privacy, and employee experiences. Data exists to help guide you in all those decision spaces; the report cites an internal study from Rituals Cosmetics that showed major employee experience gains when that company deployed iOS-based POS systems across its stores, for example. Cisco and IBM have made similar claims. 

Evidence also points to significant energy consumption reductions by migrating to Apple’s systems, which could be of importance when you’re working to align your tech with corporate CSR.

Is it time to Think Different?

That’s not to say your choices need always be determined by data points such as these. Your business may be predicated around different sets of needs that benefit from making different technology choices. But if that is not the case, it really makes sense to build a holistic overall picture of the true value and the hidden costs levied by tech deployments as you engage in each replacement cycle. In some cases, a small additional cost today could generate significant, year-on-year support and maintenance savings across your business — not just tomorrow, but across the entire lifecycle of every new device.

You’ve just got to be willing to look at the options.

You can follow me on social media! Join me on BlueSky,  LinkedIn, and Mastodon.