Mar 19, 2013

Does BYOD reduce costs or increase expenses for companies?

It certainly appears that BYOD is here to stay. Has anyone figured out the impact from a financial perspective? Does it actually cost a business money to embrace BYOD, or does it save money?


I've seen numbers all over the board. Some show significant costs associated with BYOD, some actually show savings. Intel's CIO reported that they saw a $3 gain in employee productivity for every $1 they spent on BYOD. VMWare also anticipates BYOD actually resulting in large overall cost savings.

There is going to be a spike in expenses when a company adopts BYOD, but that should be relatively short term. There are also going to be ongoing expenses with the management of the BYOD program, which is where much of the expenses came from in the company experience cited by the earlier post. I do take note of the fact that the two companies that I mentioned reporting savings are both tech savy and comfortable deploying new technologies.

Christopher listed some interesting costs, but I think those have to be weighed against the fact that companies don't have to pay to buy devices. So each company's data in this is going to be different. Some will come out ahead, and other's won't. I don't think there's any real way to generalize about how well it works.

You'll probably get different answers depending on which CIO you ask, but an Aberdeen Group study from last year concludes that an enterprise "with 1,000 mobile devices spends an extra $170,000 per year, on average, when they use a BYOD approach," according to CIO.com.


Among the extra costs cited are:


1. Higher monthly wireless costs because with BYOD, enterprises can't leverage bulk service rates.

2. Processing employee expense reports.

3. Increased help desk costs.



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