Survey Looks at Replacement Cycles in Supply Chain

According to a recent report by Venture Development Corporation, "Total Cost of Ownership Models for Mobile Computing and Communications Platforms: Industrial and Harsh Commercial Environments," the prospect of a more attractive total cost of ownership (TCO) from new mobile platforms is a powerful factor in accelerating replacement cycles of existing mobile computing solutions.

Survey respondents segmented by factors likely to encourage acceleration:

• Technological obsolescence of legacy system: 81.4%;

• Prospect of more attractive TCO/ROI: 65.1%;

• Attractive trade-in value: 46.6%;

• Desire to switch suppliers: 14.0%;

• Scalability/upgradability of solution: 11.8%;

• Other: 6.9%.

Respondents to VDC's survey indicated average replacement cycles of:

• 5 years for rugged mobile devices;

• 3 years for commercial-grade devices.

Other motivators for replacing mobile computing equipment included:

• The cost of replacement technology is either the same or less than the

present deployment.

• Increased functionality and performance is required.

• Expired warranty.

To view the press release, including graph, go to: www. vdc-corp.com/industrial/press/04/pr04-18.html .

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