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The Cost Disease: Why Computers Get Cheaper and Health Care Doesn't

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  • The cost of computer power is down, yes. However, the cost of jet fighters is going up. Atlantic Magazine reported today that the US will eventually spend $1 trillion on the new jet -- more at:

    We're working to eliminate the digital divide by making affordable Internet, low-cost computers, and free digital literacy courses available to all unconnected U.S. residents.

  • It all boils down to the magic of total cost of ownership (TCO). The total cost of ownership includes all direct and indirect costs associated with the purchase of an asset over its entire lifecycle. A TCO analysis includes the total cost of acquisition and the subsequent operating costs. Acquisition costs are quite straightforward: they include the costs for computer hardware and programs, Installation and integration, and migration expenses.

    In addition to answering the need for more computer power away from central offices, manufacturers are now selling lower-cost minicomputers to small companies that never before used sophisticated data-processing equipment.

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