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A Note on ROI

Aaron Lee, CEO of Maverick Networks, sent us this response to Jim Burton's piece on ROI:

Return on Investment...

So industry knowledge tells us that customers spend thousands of dollars on an IP PBX or UC...yet in 3-5 years the equipment has a value of less than 10% (hint...a Loss of 90% on the "Investment")

It should be described more accurately as TCO (Total Cost of Ownership), as there is a cost of ownership defined in what they spend on the solution and hopefully a resulting reduction in their expenses by a streamlining of operations and reduction in cost of doing business.

Just my $0.02...feel free to comment...as this ROI thing has bugged me for awhile....

So industry knowledge tells us that customers spend thousands of dollars on an IP PBX or UC...yet in 3-5 years the equipment has a value of less than 10% (hint...a Loss of 90% on the "Investment")

It should be described more accurately as TCO (Total Cost of Ownership), as there is a cost of ownership defined in what they spend on the solution and hopefully a resulting reduction in their expenses by a streamlining of operations and reduction in cost of doing business.

Just my $0.02...feel free to comment...as this ROI thing has bugged me for awhile....