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News
Issue #2002 - 22
(June 2002)
(Updated June
12, 2002)
MARKET
OUTLOOK & TRENDS
Palm OS Better Deal than PocketPC,
study says - Is it true?
Enterprises debating the
merits of the Palm OS versus the PocketPC platform take note: Palm
OS mobile devices deliver a 41 percent annual cost savings over its
Microsoft rival PocketPC mobile devices, according to a study by The
Gantry Group LLC of Concord, Massachusetts.
The Gantry Group was retained by Palm Inc. to profile, probe and
quantify the Total Cost of Ownership (TCO) associated with
enterprise solutions. The research firm designed and tested a
parameterized TCO measurement tool that captured multiple cost
components associated with buying, deploying, managing and
supporting handheld devices. A total of 40 enterprise sites with
deployed mobile solutions, 20 Palm-based solutions and 20
PocketPC-based solutions, were researched, recruited and interviewed
for the study.
|
TCO Cost Component |
Palm OS |
PocketPC |
% Difference |
|
Air Time Services |
$ 53.12 |
$ 58.62 |
1% |
|
Software Distribution and Update Mgmt. |
$ 7.99 |
$ 50.00 |
84% |
|
IT Services |
$ 25.55 |
$ 65.19 |
61% |
|
Help Disk and Support |
$ 68.51 |
$ 93.00 |
26% |
|
Training |
$ 26.32 |
$ 95.19 |
72% |
|
Amortized Lifetime Device Cost, w/Add-ons |
$274.30 |
$413.76 |
34% |
|
Total Handheld TCO |
$455.78 |
$775.77 |
41% |
Since typical medium-to-large enterprise mobile solutions involve
over 500 mobile devices, the 41 percent cost savings delivered by Palm
OS mobile devices represents an annual six figure cost savings of
$159,995 annually to the enterprise’s bottom line, the research firm
noted.
The significant cost difference was largely due to a gap in the
base cost of the device and higher IT services and training costs
associated with PocketPC devices. The average purchase price of Palm
OS devices was 52 percent less than PocketPC devices: $290.85 versus
$549.72.
The study attributed the higher PocketPC costs for Software
Distribution and Update Management to more frequent software updates
and lengthier update times.
Even though the Gantry study, ‘Enterprise Handheld TCO White
Paper,’ is comprehensive, corporate executives scrutinizing mobile
solution costs would be well advised to read this Palm- initiated
study with a critical eye.
For more information: http://www.gantrygroup.com
MobileInfo.com’s Comments & Advisory: This
study appears to put the cart before the horse. While the numbers used in
the study appear reasonable to us, we do know that the picture can be
different if you consider application requirements and suitability of a
device to a specific task. There is no doubt that if all you want to do is
what Palm is really good at i.e. PIM functionality, Gantry study makes
sense. But if the vertical application requirements warrant a Pocket PC
platform, study's conclusions do not matter. What good is a cheaper device
if it does not do the task efficiently and productively? Let us use the
traditional methodology - match the device capabilities against application
requirements and user needs. If both Palm and Pocket PC fit the bill equally
well, go for Palm by all means. Do not short change the user. Let us
remember that a difference of $220 is probably less than 1% (more like 0.3%)
of a professional worker's bundled cost.
Note: This news release may contain forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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