Total cost of ownership (TCO) is another concept making its way from business to education. According to Dr. Jan Van Dam, behind every purchase of technology, there are unseen costs that must be budgeted for by the organization. As the amount of technology in schools increases, these costs must be predicted and budgeted for by the organization.

In business, a company ties the TCO expenses into the overall effectiveness of the equipment (i.e., the return on investment from this equipment based on its initial cost and its TCO.) Education is not able to extract that type of figure because the return on investment is in the minds of the students.

According to Dr Van Dam, there are six TCO budget categories.

1. Professional Development
2. Support
3. Software
4. Replacement Costs
5. Retrofitting
6. Connectivity

Probably the most important aspect of this is to be aware of the needs and to attempt to budget for these needs. According to HeNews, the purchase cost of a desktop computer is only 15% of the TCO. Steven Rael reports that a Gartner Group study has shown that TCO costs could well be more like $10,000 per user!

Microsoft reports that every dollar budgeted for TCO is taken away from other pressing needs of schools, building maintenance, new textbooks, teacher supplies, and maybe even field-trip expenses. But whatever the needs in a school, someone can find a more pressing one. TCO needs compete against other needs of an organization. Microsoft has a strategy to help education and/or organizations determine and deal with TCO. This information is available at the Microsoft website. According to Dr. Dean Damon, writing for BellSouth, many organizations are trying new ways of budgeting local and other dollars to deal with this as effectively as possible. Dr. Dean Damon addresses ideas such as developing "flex guidelines"for funding, community advisory groups to help with bond elections, and multi-year funding of technology projects.

I feel that TCO must become a part of an organizational budget just like maintenance of any school property. TCO is no longer a small time expense that can be taken care of with money from the "soda sales." Now it includes teacher training, upgrading of existing technology, Y2K upgrades, and a host of other expenses. But the students we teach want technology, and the communities and businesses we serve demand technology in the schools.