• Device acquisition: Most companies currently provide PDAs to their staff members only on an exception basis (such as executives and certain sales and marketing personnel). Indeed, only 25 percent of companies have a PDA policy. However, during the next three to five years, we expect most users who require a PDA as part of their job (and/or approved by management) to obtain one from the company, either directly or through reimbursement. PIM-centric users will likely gravitate to lower-end Palm devices (average cost $300), with an average life span of 18 to 24 months, while application-centric users will gravitate toward higher-end Pocket PC devices (average cost $600), with a life span of 24 to 36 months. Further, we expect 15 to 20 percent loss/breakage of the devices in use. Although we believe a gradual decline in price will take place during the next several years, we do not expect drastic price reductions. Prices will be maintained by the vendors through increased features/functions built into the device. In addition, most enterprise users will opt for more feature-rich (and more costly) devices.
• Synchronization software: Most users currently employ PIM synching software at their individual PCs. However, we believe this is the wrong approach from a management and security perspective, and companies should quickly move to a server-based synchronization package for PIM. Companies that require PIM synching can obtain server-based software (from Extended Systems or Puma, or example) for approximately $100 to $150 per seat, though we expect this cost to drop dramatically during the next three to four years, as much of this functionality becomes embedded within Exchange, Lotus Notes, and so on. Users who require synching with application data require a higher-end solution (from Synchrologic, iAnywhere, or AvantGo, for example) at a higher cost ($300 to $500 per user). Such general-purpose synching software can be leveraged across several different applications.
• Application software: Currently, most PDA application extensions are provided through mobile application server (MAS) vendor packages. These packages (for example, from Broadbeam, Roamware [formerly Mobileum], iConverse, and ViaFone [recently acquired by Extended Systems]) should be considered tactical, because we expect all major vendors of CRM, ERP, SFA, and so on (SAP, Oracle, PeopleSoft, IBM, BEA, Sybase, and Siebel, for example), to offer complete mobile extensions to their products within two to three years. Current costs for MAS may range from a few hundred dollars to more than $1,000, depending on quantity of users and functionality. Average current price is approximately $500/user. We expect this to drop to $100 to $200 per user in two to three years as this functionality is enabled within the major platforms.
• Server component: We believe server-based synchronization for PIM functionality should be applied on a standalone server separate from Exchange/Notes servers, both to offload the mail server and to prevent possible crashes from bringing down the entire e-mail system. These servers do not need to be high-end, heavy-duty systems; therefore, we expect a cost of $50 to $100 per user.
• Support services: Most users will require an initial support service to connect and initially load the PDA. For PIM-centric functionality, this will be about an hour. For enterprise application-centric users, this could take two to four hours of a support group's time. Ongoing support (calls to the help desk) should be four to six calls per year for the PIM-centric user, and 8 to 12 calls per year for an application-centric user (at approximately $50 per call).
• Training: Users primarily interested in a device for PIM synching purposes should be able to be trained on the device and application in one hour or less. However, heavier-duty PDA applications (such as SFA, field service, trouble ticketing, and order fulfillment) will require more extensive training (4 to 8 hours per user), and may require occasional remedial training for newly introduced features/functions.
• Connectivity: Users needing wireless connectivity will require purchase of either a wireless-ready device (such as the Palm i705 or BlackBerry--about $400), or require a plug-in wireless card (the Sierra Wireless, for example--$150 to $250). Non-cellular wireless connectivity plans (for example, Motient, Cingular, GoAmerica, and Palm.net) are $40 to $80 per user per month, depending on the functions and data needs selected. Cellular-based plans (such as Sprint, Verizon, and AT&T) normally vary depending on the amount of data transmitted, and can range from $20 to $30 for occasional, light usage to several hundred dollars per user per month.

Business impact: Enterprises must include the total cost of ownership for personal digital assistant devices brought into the company or furnished by the organization as part of the overall budgeting process.

Bottom line: Although they are currently acquired primarily by end users, personal digital assistants will increasingly be furnished by the organization for certain classes of users. Devices (even if acquired by the end user) are not free; companies must determine the total cost of ownership, and plan the budgetary and resource commitments accordingly.

PDA TCO: How Much?
First published on August 20, 2002
By Jack Gold

How much do estimate it costs your company to support PDAs? TalkBack below or e-mail us with your thoughts.

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