A Note on ROIA Note on ROI
How and why is it industry rags continue to push ROI when there is no positive return on the actual money spent?
March 6, 2009
How and why is it industry rags continue to push ROI when there is no positive return on the actual money spent?
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")
How and why is it industry rags continue to push ROI when there is no positive return on the actual money spent? 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....
How and why is it industry rags continue to push ROI when there is no positive return on the actual money spent?
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")
How and why is it industry rags continue to push ROI when there is no positive return on the actual money spent? 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....
