Myths About Technology Hardware Procurement

Balancing the technology needs of state and local government and educational institutions against shrinking budgets is contributing heavily to the proliferation of false logic and expensive miscalculations by people involved in the government hardware procurement process. This article exposes the Top 5 Myths and misinformation that are causing state and local government and educational IT managers to spend more money than they need to.

1. Computer Hardware Prices Are The Biggest Contributors To The Total Cost Of Ownership (TCO).

This one is easy to believe when you’re specifying computers and network devices and sticker shock sets in. The real truth is that computer hardware is only a small part of the TCO. Repairs, labor, technical support, software and the hidden costs of downtime can easily exceed the initial hardware purchase price.

2. Cost-Savings Result When Generic and Low-Cost Hardware is Purchased.

Just the opposite is true. High-quality equipment, such as HP servers, HP desktops, HP notebooks, HP storage, HP workstations, HP printers and other HP hardware used by state and local government or educational institutions actually lower the TCO due to longer mean-time-between-failure (MTBF) times, resulting in lower service costs, and higher resale prices which can lower the TCO come replacement time.

3. Direct-To-Government Pricing Is Always The Lowest Available

Unless you work for a federal government agency that is buying off the General Services Administration (GSA) procurement list, direct-to-government pricing may not always be the lowest price available. It’s not uncommon for companies like Hewlett Packard to have lower pricing schedules available to technology solutions providers that regularly produce large volumes of business that far exceed what most state and local government and educational institutions can generate on their own.

4. Going Through The Request For Proposals (RFP) Process Guarantees The Lowest Prices

Like Myth #3, this one is often untrue as well. Remember that computer hardware purchase prices represent only a portion of the TCO. While it may be possible to find a hardware provider with an unusually low hardware bid price, the chances are that installation and configuration services, if they are even available, will be priced high enough to offset the initial perceived savings.

5. Purchasing Through Full-Service Solution Providers Is An Expensive Luxury

This final myth can actually be the most financially devastating one for state and local government and educational institutions that do not understand the importance of value-added services that are available from companies who specialize in the procurement process. Hewlett Packard technology partners that specialize in the procurement process, for example, can actually lower the TCO by configuring your HP computer products and by providing both personalized account management and rapid support response even after the sale. The best HP computer partners can also assist you with developing your HP computer hardware specifications and submitting your HP quotes.