Showing posts with label TCO. Show all posts
Showing posts with label TCO. Show all posts

Tuesday, October 15, 2013

Measuring the Total Cost of Ownership in AVI (Part 1)

There are three primary areas of AVI that incur initial and follow up costs.  They include the readers, the tags and the service / maintenance.  This three part series will look at each aspect of the Total Cost of Ownership (TCO) and illustrate how to calculate TCO.  In our first part, we evaluate the readers themselves.


When paying for an entirely new install, the customer is inclined to look at the bottom dollar price and will fail to include the additional costs that come from operating a technical AVI system.  Readers, while often not the largest single line item (tags are because of their quantity), they do have the largest initial single item cost.

One thing that will increase the TCO is the lifecycle length of the reader.  If your reader does not include backward compatibility and a long lifecycle, then your total cost over the lifetime of the project can increase dramatically.  Replacing a single discontinued reader may involve a total system replacement.

A second issue is the reader’s compatibility with