Dec 06/Jan 07

Managing whole life costs for mobile devices is a growing challenge, though lately it's become a lot easier, says Sharon Clancy.

Whole-life ownership of assets such as computer equipment used to be about making sure that costly repairs down the line didn't wipe out an attractive initial purchase price.

Now there's an added dimension. Thanks to the proliferation of devices and applications that are deployed out in the field, IT managers now also need to consider the costs of managing those devices from an operational viewpoint. If you have to recall a device every time a new operating system "patch" is required or a software upgrade is needed, that's going to affect your bottom line as well. And that's over and above the cost of basic repairs.

Ruggedised handheld computers

Few ruggedised handhelds are going to make it through a five- or seven-year life unscathed. After all, if there were no risk of damage, there would be no point in paying extra for the ruggedness in the first place; and there are always going to be casualties even then.

How you manage those repairs is going to have a profound effect on total cost of ownership for the devices. Duncan Smillie, managing director of Psion Teklogix, ranks service as the second-biggest single differentiator between companies competing in the handheld terminal market. "You have to be able to support the devices that are out there, and understand that customers need easy access to support services," he says.

Service contracts are nothing new in the ruggedised handheld market. Companies whose operations rely on wireless data capture and mobile computing need the security of knowing that if devices get damaged, they will be quickly repaired or replaced.

Such users can decide on a level of service that suits their operation, and pay accordingly. Typically repair times range from 24- or 48-hour repair to around five days. Collection and delivery are made from and to the site. Depending on the service level, replacement units may be included.

But do make sure you are comparing apples with apples when checking manufacturers' service contracts - it is the total time out-of-service that will affect the operation, after all. Determine how many, if any, replacements you need to hold in a buffer stock. Does the manufacturer's time-guarantee start when the device arrives at the repair centre, or does it include the transit time as well?

More recently, there has been a shift to more sophisticated service agreements that include signing up for three-or five-year agreements. Depending on the company, either users pay up-front or the fee is amortised over the life of the contract. Savings can be considerable compared with an annual service contract.

See panel above for more on what some of the handheld makers offer.

PDAs

One of the arguments against using consumer-style PDA devices in mission-critical operations is that they are not only more likely to get damaged, the repair networks are also consumer-oriented, not business-oriented. While this may be a factor worth bearing in mind, there are some PDA repair specialists who can turn round repairs quite quickly and at prices lower than those charged by the original equipment manufacturers.

The London-based Mobile Repair Centre, for example, has a recently expanded its workshop. It aims is to repair any make or model of handset using the latest diagnostic equipment, and carries a wide range of parts and refurbished units, including laptop spares. It also offers a data recovery service.

The company says that phone and PDA damage tends to range from simple speaker or microphone problems to physical damage and water ingress. The minimum cost for PDA repairs is £34.95, and the company has a useful online repair quote system, so customers can get some idea of the likely cost of the repair before committing themselves.

POS, another leading specialist in mobile repairs, charges £58.95 to repair an XDAII. The cost includes collection and delivery by Parceline. While replacement batteries can cost as little as £19, POS warns that if the screen shows signs of "bleeding ink", that would entail replacement of the complete LCD assembly at a cost of £120.

Although both these services seem fast and efficient, they are geared to the consumer market. There's no swap-service, for example, so you would need to have your own replacement models to keep mobile workers productive while the original unit was being repaired.

Device management

Keeping track of whole-life costs is also about managing devices in the field - a fact that more suppliers in the mobile sector are now beginning to recognise. If you want to avoid unnecessary downtime, basically you must have features such as over-the-air management of devices in the field, along with the ability to update software applications, deploy new software and security updates, and interrogate those precious assets.

One group of businesses moving into mobile device management consists of suppliers of middleware, who are extending their security and device management applications to include over-the-air collection of data about the actual device, its use and the applications running on it. A classic example is Intellisync's Mobile Systems Management, which includes a diagnose-and-fix feature with device backup and configuration management to restore data should a device get damaged or lost.

Sybase subsidiary Afaria's device management solution proactively manages devices, applications, data and communications. The Inventory Manager scans and captures detailed hardware and software asset information from mobile devices, tracking what hardware and software is deployed in the field and monitoring the status of each device.

Managed data specialists such as Cognito have a role here too, providing services that help control whole-life costs, with features such as a one-stop fault diagnosis and repair service. Mobile workforce management experts such as B2M are also emphasising the need to manage devices out in the field to control costs. Applications such as B2M's mprodigy suite allow IT managers to maintain devices in the field, and include remote updating or software fixes.

The manufacturers of the devices themselves also offer services to help manage devices in the field. Psion Teklogix's Mobile Control Centre (MCC), for example, is a software application designed for the deployment, support and maintenance of mobile devices whether they are used in the warehouse or the field. Administrators can control and monitor devices, generate activity and asset reports, distribute or update software, configure applications, remotely control devices and troubleshoot and correct problems. MCC also provides remote training, as well as instant message broadcasting to the mobile workforce.

Hand Held Products' Mobile Systems Manager allows customers to manager Dolphin computers remotely in the field. MSM can deploy applications, gather data on device inventory and reconfigure devices.

Repair insurance - how the makers aim to keep you running

One reason that the major handheld computer experts can offer fixed-price repair contracts is that they have a wealth of data available to them about what happens to devices in the field, and at what point in their lives components are going to start failing from natural wear and tear.

Symbol's ServicePAKS contracts insure users against accidental damage and normal wear and tear. They cover the majority of Symbol devices, from scanners and handheld computers to wireless devices. The plans cover repairs to plastics, triggers, displays and internal and external components damaged through accidental breakage as well as normal wear and tear. Users who sign up to ServicePAK can virtually eliminate any surprise repair costs, says Symbol, resulting in "significantly lower total-cost-of-ownership".

There are two Service From The Start packages, the main differentiator being the repair and device replacement package. Advance Exchange Support is for barcode scanners and wireless devices in warehouse, and offers next-day delivery of replacement units. Comprehensive Coverage offers a three-day turnround time for repairs compared with Symbol's standard service time of 10 days.

What about tracking the progress of repairs once they are under way? Teknet is an online extranet service for Psion Teklogix customers, allowing them real-time access to repair status information. Customers can see what service contracts they have, and what installed equipment. The Web site can also be used to request repair numbers and arrange collection. The one-, three- and five-day service levels refer to the time the device spends at the company's Aix-en-Provence European repair centre, which deals with over 50,000 terminals a year.

The company says that over 90 per cent of its UK customers take out a repair contract, even though the products are sold with a three-year warranty.

Most manufacturers are coy about quoting costs for repair contracts, regarding the price as a negotiating tool. However, Psion Teklogix says users should expect to pay around 5 per cent of the list price of the equipment for a five-day guaranteed repair time.

Intermec's Medallion service can include on-site service for mission-critical operations. With Medallion Silver Replacement Service the user pre-purchases replacement units (typically 5 to 15 per cent of the total inventory) which are then managed by Intermec. Replacement units are dispatched overnight (provided the call is received by 3pm), and the damaged device is returned in the reusable packaging to an Intermec repair depot. Once fixed it is returned to the customer's inventory.

Monthly reports are provided showing all replacement activity including call times and dates, ship dates, return dates and quantities in your replacement pool. The Bronze service is similar, but without buffer-stock management.

Service Cubed is a three-year service package from Hand Held Products which the company says can save up to 40 per cent compared with buying the same service package on an annual basis. With Service Cubed, customers essentially contract for the existing Silver and Bronze service packages for three years. With the Bronze, service repairs are completed on a three-day business turnround; with the Silver package it is five days.

LXE customers can sign up for ServicePass. Core benefits include repairs within three days or less, technical support, and pre-configured repaired equipment.

Repair contracts are not limited to those manufacturers running their own repair centres. DataLogic, for example, has a network of five authorised repair centres in the UK, but also offers fixed-cost maintenance contracts, with guaranteed turnround times. As with its rivals, the level of service is determined by what response time the customer requires. Packages available include 24-hour, 48-hour and five-day repair times, plus on-site Premium and Total support.

The 24-hour service includes replacement products within 24 hours if notification is received by 1pm. Optional is a customer inventory (Datalogic recommends 10 per cent of devices) which is held either by DataLogic or at one of the authorised repair centres. There's an annual fee for managing this stock.