Total Value of Ownership and ‘Martini Computing’

After the event with HP’s CTO I hosted, I was fortunate to be invited to an event in London with the President and CEO of Citrix, Mark Templeton. I was quite impressed with the guy, if I am honest – a really down to earth chap, which you don’t expect at the higher echelons of a large organisation. After the main event, which was a presentation and a Q and A, he was more than happy to have a chat over a cup of coffee, which was enlightening.

Some of the stuff he talked about resonated with me, as it was similar to the way we try to shape our own business. He was saying that while they are a public company and have a duty to their shareholders, they are more interested in building something interesting and powerful, which will deliver benefits to their customers – whilst having fun – than focusing short term on the needs of those shareholders. We try to do the same – focus on employee satisfaction and customer satisfaction, in our belief that the former drives the latter. If we treat our customers right, the rest will follow – I’m sure that’s an appropriate standpoint. We’re privately owned, but I’m sure Mark’s attitude will deliver for his shareholders in the long term.

Anyway, back to business… Mark was talking about the way in which IT calculate the return of spending money – or how business calculates the return of spending money on IT. This is generally based on TCO – total cost of ownership – and whether having a lower TCO will generate a return for the investment over a given time period.

The suggestion was that in this day and age, we should be looking at Total Value of Ownership – TVO – instead. This means concentrating more on the benefits an IT solution will deliver to the business rather than the pure costs.

I guess this is particularly appropriate in the virtual desktop space where Citrix play – it’s difficult to justify a VDI project on capital grounds over the cost of replacing PCs, but the benefits come in terms of, yes, lowered operational expenditure but also in flexibility of workspace, device independent computing (letting users choose their access device), home working, employee experience… We’re likely to role out VDI for our own users, and can see such benefits, as an employer which likes to be nice to its staff, as really important. I look forward to the day when all users can access IT systems securely using the device of their choice, wherever and whenever they want. Maybe we should call it Martini computing….

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