2. Hardware

Original cost of hardware

The initial cost of computers, modems, networking cable, printers etc all need to be considered as part of the cost of producing information.

It is likely that this hardware will be in use over a long period of time and thus the more information which is produced, the more the cost can be offset.

Replacement of hardware

Hardware needs to be replaced over time as it wears out, becomes damaged or becomes obsolete. The costs of replacing the hardware need to be counted towards the cost of producing information.

Maintenance of hardware

Many organisations have a maintenance contract with an IT firm who will come on a regular basis to check and repair the equipment. Such contracts are relatively expensive but they do provide companies with peace of mind that something will get repaired quickly if it stops working.

Storage of information

Regular backups will need to be made of the data and information held on the system. The most common backup media is either a magnetic tape or DVD. Each time a new tape or DVD is used, there is a cost involved.

The more information which is stored, the larger the size of hard disk needed. Over time, a company might have to purchase a larger hard disk for storage purposes.