Client Computing
MITS Core Services includes a standard Windows laptop for each user included in a MITS customer's census count. MITS accounts for users' needs for upgraded devices and the need for additional computers by treating them as consumable devices that are charged back to the customer. For a MITS customer, the costs for upgraded and additional devices are spread out over the lifetime of the device through monthly cost recovery.
To do this, every month each client computer is automatically evaluated by whether it is a Core or Consumable device and by whether the device package is an upgrade over a core device. Based on this information, each computer will be classified in one of the following ways:
- Core: The device and support cost are fully covered by the MITS Core Services charge.
- Core Upgrade: The device cost is partially covered by the MITS Core Services charge. The cost of the device over a standard core device is assessed monthly to the customer. The support cost of the device is included in the MITS Core Services charge.
- Consumable: The device is not covered by the MITS Core Services charge. The device and support costs are assessed as monthly charges over the lifetime of the device to the customer.
Cost Recovery
Each computer in a MITS agreement has a record of the total amount of cost that should be recovered [Cost Recovery Target] over the lifetime of the device and the monthly rate of cost recovery [Monthly Cost Recovery].
The cost recovery information for each device is calculated when the device is first placed in use, so the amounts are based on the true cost of each device when it was purchased and does not change as package costs fluctuate over time. The cost recovery amount accounts for the cost of the computer and accessories.
Monthly Cost Recovery Calculation
Defined Package
- Package Cost / 48 Months
Consumable Charge
Each month when a computer is evaluated for the monthly bill, the full Monthly Cost Recovery amount is divided between Core Credit and Consumable Charge to show how the total cost of each device has been recovered. The Consumable Charge includes the cost of the device as well as the cost of support for that device. Support costs are dependent on the type of device, with laptops and desktops having different support costs than devices like tablets.
The history of each billing period is captured for each computer and shows the breakdown of Core Credit and Consumable Charge. Only devices that warrant a Consumable Charge will be included on the customer bill.
Examples:
- Core Windows Standard Laptop: The full Monthly Cost Recovery amount will be shown under Core Credit in the billing history. No amount of the Monthly Cost Recovery will be included on the customer bill.
- Core Mac Laptop: The portion of the Monthly Cost Recovery that represents a core device will be shown under Core Credit in the billing history. The remaining Monthly Cost Recovery amount will be shown under the Consumable Charge and will be included on the customer bill.
- Consumable Device: The full amount of the Monthly Cost Recovery will be shown under Consumable Charge in the billing history and included on the customer bill.
Devices Purchased by the Customer
Computers that are purchased using customer funds, including devices purchased before the start of a MITS agreement, will not be assessed a consumable device charge regardless of use or package. Instead, the full cost of customer purchased devices will be credited as a core computer. This is done to ensure that customers are never charged for devices that they have fully funded.
Cost recovery of the computer is still calculated each month to show when the device should be refreshed. Customer purchased consumable computers will still be charged for device support.
Custom Devices
Custom devices require payment up front for the device. The device may fall under Core or Consumable charges. Core customer devices receive a Core credit for the value of the device and the support is covered in the Core cost. Consumable custom devices receives a monthly support cost under the Consumable Charge but does not receive a monthly device cost since the payment for the device was received up front.