White Paper | October 2005 When LCD Monitors can reduce TCO
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1. Introduction
Controlling total cost of ownership (TCO) has been the goal of every good IT manager for the
last 10 years. IT managers are well aware that the costs incurred after the initial deployment of a
PC network can add up to 80 per cent of total IT costs. But when they are controlling TCO, most
decision-makers still focus primarily on their PCs, software and IT infrastructure. Little attention is
given to the life-cycle costs of LCD monitors - despite the significant role that these play in both
user satisfaction and productivity.
Philips has adopted an overall strategy focused on optimizing the life-cycle costs of LCD monitors.
Rather than concentrating solely on reducing the initial purchase costs, Philips is the first supplier to
address the specific needs of each life-cycle phase. The result is a range of outstanding LCD moni-
tors, together with an asset management tool that helps companies to substantially reduce their
TCO costs. This white paper aims to provide an overview of the life-cycle costs of LCD monitors
and of all the individual factors that can influence those costs, and how these cost-relevant factors
can best be addressed. Identifying and understanding the components of life-cycle costs is the first
step towards controlling and reducing them.
2. Monitors: vital part of the desktop configuration
End-users operate their PC software by using a keyboard and a mouse, but more importantly by
looking at their monitors. The monitor is what they see in front of them, day in day out as shown
in Figure 1, while the PC is often stored under the desk or in a docking station, in case of a laptop.
A monitor without enough brightness, contrast or color depth will cause eyestrain and reduce
productivity. A monitor with faulty pixels will cause irritation, generate help desk calls and eventu-
ally result in a warranty claim, meaning extra IT support costs and temporary downtime for the
end-user. In other words, as far as end-users are
concerned the monitor is what provides their
‘window’ on their application and on the con-
tent of their work, which makes it a strategically
important tool for them.
However, for IT departments monitors are often
not given the importance they deserve. Key pur-
chase criteria are mostly based on size, design,
price, display performance, warranty conditions
and specific features such as I/O capabilities and
on-screen display facilities. Features affecting
life-cycle costs are often overlooked. Companies
may have a good idea of where their PCs and
other IT devices are located at any time, but can
rarely answer this and many other vital cost-
determining questions about their computer
monitors:
• How many monitors are being used in the organization?
• What are their brands and configurations?
• Where are they located?
• Which monitors are being leased and which are owned?
• What is the impact of all installed monitors on the total power bill?
• What measures are in place to prevent hardware theft?
• What are the operating hours per monitor, and what are the replacement criteria?
• What is the warranty expiry date?
Figure 1: The monitor is the vital visual interface with the
end-user, and the dominant component at the workplace
