Study Shows 41% Total Cost of Ownership (TCO)
Savings With Palm OS Over Pocket PC
May 23, 2002 A Study conducted by The Gantry Group LLC of Concord,
Mass shows that the Palm OS platform delivers a 41 percent annual
cost savings to enterprises when contrasted with the Pocket PC
platform.
Gantry Group designed and tested a highly parameterized TCO measurement
tool that captured multiple cost components associated with buying,
deploying, managing and supporting handheld devices. Of the six
basic cost components examined in the study, Palm OS based devices
were less expensive in every component -- and more than 60 percent
less expensive for software, IT services and training (see chart
below).
TCO Cost Comparison
Average Annualized Palm OS Pocket PC Percent
per Handheld Difference |
Palm OS
|
Pocket PC
|
% Difference
|
Software distribution and update management |
$7.99
|
$50.00
|
84%
|
Training |
$26.32
|
$95.10
|
10 72%
|
IT Services |
$25.55
|
$65.19
|
19 61%
|
Amortized lifetime device cost with add-ons |
$274.30
|
$413.76
|
34%
|
Help desk and support |
$68.51
|
$93.00
|
26%
|
Air-time services |
$53.12
|
$58.62
|
1%
|
Total Handheld TCO |
$455.78
|
$775.77
|
41%
|
According to Gantry, the average number of devices involved
in a deployed enterprise solution is at least 500 devices; based
on that, enterprises could
realize an annual cost savings of $159,995 to their bottom lines
if they were to deploy Palm solutions.
Forty enterprise sites -- 20 Palm OS mobile solutions and 20
Pocket PC mobile solutions -- were researched, recruited and interviewed
in the United
States. Gantry is now expanding the study to encompass case studies
on the ROI (return on investment) realized by three of the companies
in the study that
used Palm branded handhelds.
"This study provides the compelling evidence we are sharing
with enterprise customers that proves Palm powered handhelds are
a more cost-effective mobile solution," said Ken Wirt, Palm's
senior vice president of marketing and product management. "This
TCO message, combined with the high user acceptance experience
reported by Palm handheld customers, lets Palm create a win both
for the IT department and the end user -- our goal as a
provider of enterprise solutions."
Palm OS and Pocket PC are the two leading mobile solution platforms,
according to IDC's April 2002 report, "Sync or Swim: Worldwide
Smart Handheld
Devices Forecast and Analysis, 2002-2006." This report shows
that the Palm OS platform had a 52.8 percent share of worldwide
handheld device shipments by operating system in 2001. IDC notes
Pocket PC share in 2001 was only 21 percent.
About Gantry Group
The Gantry Group is an Internet professional services
company that uses custom market intelligence and research to develop
strategies that show companies how to cost-effectively accelerate
successful market adoption of their product or service offerings.
Additional information about Gantry Group can be found at http://www.gantrygroup.com.
For a copy of the white paper: "The Palm
OS versus Pocket PC Mobile Solutions Deployment" Click
Here (PDF)