Procuring ICT Products from Retail Stores vs. …

1 Procuring ICT Products from Retail Stores vs. transversal Contracts Technology Advisory Services (TAS). June 2017. Technology Certification process TAS is responsible for product Certification process 6 certified Technology Domains: Personal Computing Devices Peripherals Servers & Storage AVCT (Audiovisual). Networking Infrastructure GITOC-approved specifications with input from all role players, including Departments, suppliers, >110 OEMs All Departments invited to participate! (e-Mail or GITOC TTT channels). 2. product Certification website 3. transversal contract vs. Retail (summary). * SITA Research Report - Procuring ICT Products from Retail Stores vs. transversal Contracts 4. Cost factors in ICT procurement Constitution mandates cost-effectiveness, not cheapness Cost Price TCO focus transversal contract TCO features: Complete solution ( pro OS, carry bag + lock).

2 Price 3-year on-site warranty and support SLA. Better security (encryption, no leaks during repair, security clearance for technicians, remote wipe option). Stable, manageable platform with asset tracking Cost over time and data protection options Pro OS options: Windows 10, Windows 7, Linux Home OS cannot connect to Domain (AD). Standard configurations with pre-built disk images for mass roll-out No preloaded trialware/crapware/spyware 5. Additional considerations Windows Pro + minimum accessories bundle = ~R3000 extra 3-year warranty + on-site SLA = ~R1500 extra contract Products have enterprise-level options: docks, biometrics, asset tracking tools, OS downgrade rights, Linux (open source). Support for economic imperatives such as empowerment Blacklist process as recourse: only on contract There are lower-price options on contract : PC2, Note2 still meet enterprise requirements e-Waste processes supported by enterprise OEMs Retail Stores often offer one-time specials (typically dumping older Products ).

3 ICT Products contain 100s of parts. Even if CPU, RAM and HDD are similar, it doesn't mean the Products are the same. Retail systems do not comply with SITA minimum spec, cannot be certified 6. SITA-specified laptops: Comparison CAPABILITIES + PRICE. Note1 Note2 Note3 Note4 Note5 Retail laptop Netbook / Value notebook Thin and light Midrange Advanced No clearly defined Chromebook / Sweet spot notebook business business user profile Thin client for standard notebook notebook laptop users Single-core, 64- Low-cost X64 X64 dual-core X64 dual-core X64 quad-core Low-cost, low- bit pref dual-core (Including LV & featured, low- ULV) quality, but cheap Price curve Atom 1 GHz 5th-gen Celeron 6th-gen Core i3 6th-gen Core i3 6th-gen Core i5 Celeron - i7.

4 7. Printer TCO example Retail Enterprise Price R380 R1330. Ink prices Black: R 145 Black: R 295. Colour: R 170 Colour: R 195. Ink yield (pages) Black: 200 Black: 2200. Colour: 165 Colour: 1400. Duty cycle per month 750 pages 15000 pages Print speed 16 pg/min 34 pg/min Ink cartridges 2: K + Tricolour 4: CMYK. Cost per page Pages per month 200 200. TCO over 3 years R 8 810 R 3 980 less! TCO over 5 years R 17 240 R 6 630. The fine print . 8. Failure and service risk: Retail store No delivery or installation No on-site support 9. Failure and service risk: transversal contract Delivered & installed on-site 10. Price comparison 2017. 11. Decision factors 12. Conclusion When comparing apples to apples, contract is cheaper and offers lower TCO.

5 This is not about protecting SITA's business - SITA. makes no money from transversal contracts. It's about informing Government about cheap , low-quality consumer-class devices. Contact us for more info: 13. Thank You! Questions? In other words standards are being formulated whereby the non-standard parts, which must conform to certain standards of non-standardisation, are also to be handled only in a standardised non-standard way in order to standardise on the overall non-standardisation.. John Gordon, The Alice and Bob after-dinner speech 14. Backup info 15. Price comparison detail Item product Config Note3 Lenovo ThinkPad 14" WXGA, Core i5- R 14 126 N/A - R 17 699 125% R 18 561 131% N/A N/A. T460 6200U, 4GB, 500GB. Note3 Lenovo ThinkPad " WXGA, Core i5- R 12 717 R 18 179 143% N/A - R 17 945 141% N/A N/A.

6 X260 6200U, 4GB, 500GB. Note3 Lenovo ThinkPad 14" FHD, Core i5- T460s 6200U, Upgr: 8GB, R 17 396 R 25 565 147% R 23 899 137% R 23 292 134% N/A N/A. 256GB. Note4 Lenovo ThinkPad 15" FHD, Upgr: Core R 20 413 R 22 799 112% R 21 899 107% R 23 750 116% N/A N/A. T560 i7-6200U, 8GB, 1TB. Note3 Dell Latitude " FHD, Core i5, R 23 790 R 25 935 109% N/A - R 28 619 120% N/A N/A. E7270 Ugpr: 8GB, 256GB. Note3 Dell Latitude 14" WXGA, Upgr: R 27 565 R 34 009 123% N/A - R 29 062 105% N/A N/A. E7470 Core i7, 8GB, 256GB. Note4 Dell Latitude " FHD, Core i5, R 21 716 N/A - R 22 699 105% N/A - N/A N/A. E5570 500GB, Upgr: 8GB. Note4 Dell Latitude 14" WXGA, Core i5, R 20 111 N/A - R 17 299 86% R 18 895 94%. E5470 4GB, 500GB. 16. contract vs Retail PCs: Details 17.

7 Consumer vs. Enterprise computers Failure risk what happens if it breaks? Have to take it back to store on-site support is a huge issue OS considerations Pro OS with downgrade rights Domain support Alternative OS options: Linux Build quality & reliability Metal/carbon body and hinges, higher duty cycle, more reliable Often ruggedised (MIL-STD 810G), drop/dust/temperature/spill-resistant Security designed in (including data loss prevention). Long lifecycle Enterprise-level accessories Included: bag, lock, 3-year support Support for asset management and tracking, remote wipe Optional: biometrics, docks, service upgrades, etc. 18. Detail comparison Configuration Intel Core i5 CPU, 8GB RAM, 500GB HDD. Identical basic system configuration but this is not important in terms of TCO and long-term use Storage 500GB 5400rpm HDD 500GB 7200rpm/SSD.

8 Old technology, low performance drive New technology, high speed drive Display Low-resolution, glossy coating, medium brightness, TN High-resolution, high-brightness, anti-glare, IPS. Low definition, best suited to dark environments where reflections do not distract, poor High definition, good viewing quality in all environments (specifically office with bright lights), viewing angle good viewing angle Physical size and weight Average: , Excellent: , Relatively large and heavy due to consumer design and non-optimised materials Best-in-class size and weight for enterprise: almost half the size and weight of the Retail system Mobility and battery life Mediocre Good Mobility is not a primary mandate price is System design and components optimised for mobility product focus Up-front price short-term TCO long-term Sucker the buyer with a CHEAP!

9 Sticker Lower cost with fewer failures over long-term use Operating system Windows 10 Home Windows 7 Pro Bleeding edge consumer OS, no domain integration, enterprise features. Compatible with all Mature, Dept-approved and domain-integrated, enterprise OS. Tested compatible with Gov Gov systems? Not tested. systems Security No specific provision TPM, AD login, Encryption, Fingerprint, K-Lock No built-in security capabilities Secure storage of crypto keys, Departmental login, support for encryption, physical cable lock Data security in case of Data is at the mercy of Retail store Data does not leave office failure No guarantee of breach or data loss Cannot be lost or compromised SSA guidelines for data No provision for data security Keep your HDD programme security in case of failure Hard disk with data has to be returned to OEM OEM allows hard drive to remain at client, in line with SSA guidelines Installed software No control OEM marketing Full control Gov software image Several types of scareware.

10 Trialware and ransomware even spyware Built by Department, loaded @ factory Additional features None Backlit keyboard, Fingerprint reader, Dual pointing device, Docking station support, 3G support Certified build quality & None MIL-STD 810G. reliability Built from cheapest, low-end parts Tested for ruggedness for day-to-day use On-site delivery and User responsibility Included in price installation Carry in to store with 6-week turnaround Support and warranty 1-year carry-in 3-year on-site User responsibility, turn-around time unknown Guaranteed 8x5, 8-hour repair SLA. Standard accessories Charger Charger, Carry bag, K-lock Other accessories are extra No other accessories needed System management None Intel vPro or equivalent Cannot be remotely managed Fully manageable by Dept ICT staff Anti-theft No provision Anti-theft support built in No support for third-party anti-theft/tracking tools Full support in BIOS for tools like CompuTrace Hardware design Retail , low duty cycle Enterprise, high duty cycle Lower-quality components and accessories built to sit on a desk at home for 80% of the time System and accessories designed and built to withstand 3 or more years of daily travel product life cycle 3-month cycle 12-month+ cycle High churn rate of components, including motherboard.