TCO Use Case Lab In this lab, we compare two computer network purchase proposals in terms...
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TCO Use Case Lab In this lab, we compare two computer network purchase proposals in terms of total cost of operations (TCO). The technology firm you work for is expanding. They have purchased office facilities and furniture at the new location, and have negotiated WAN and Internet connectivity to the site. You have been asked to compare proposals to outfit and maintain the computer network from two rival companies, Rick's Smart Systems and Morty's Reliable Products. As background, you have been given the following information regarding site needs and capabilities/limitations: (Required) 20 networked desktops running Windows 10 OS o (Desired) Monitor size which accommodates comparison of multiple spreadsheets (Desired) Ability to stream/record high-resolution video (Required) Microsoft Office software for all desktops o (Desired) Latest Microsoft Office software versions throughout-years (Required) 2 networked laser printers available to all locally connected systems (Required) Initial network segmentation to 4 function-oriented subnets o (Desired) Built-in QoS and easy network reconfiguration (Required) Support for all on-premises network equipment; never more than 2 business days downtime (Desired) Never more than 1 business day downtime (Required) Support for employee and visitor Wi-Fi laptops/tablets/devices with ad hoc network connection (Required) Security appliance(s) and/or software to mitigate network intrusion and data breaches In response to your firm's RFP, two bids were received as summarized on the following pages. You must compare the proposals with an eye toward TCO and the expressed site needs. The site needs you have been given are not as specific or complete as you would ideally prefer, so you may need to make some assumptions and/or caveats regarding your selection. Be sure to identify these in your submission. Note that the selected proposal's company will be awarded a one-year contract with two optional follow-on years at prices listed in the proposal. You should also be aware that employees at this location average salaries at $50/hour, and that they cannot complete any useful work (but must still be paid) when the network is down. Turn-in Requirements: To complete the assignment, upload a Word (.docx) or Adobe (.pdf) file with your recommended proposal and a short justification of your selection, expected savings, including critical assumptions (if any) and/or caveats to the proposal acceptance (if any) as your submission to this assignment in Blackboard. 1. (10 pts) Compare the two bids 2. (5 pts) Which bid do you recommend? 3. (10 pts) What is your justification for your recommendation? 4. (5 pts) What is your projected TCO savings over three years for your recommended bid over the other bid? TCO Use Case Lab Notes are included [in square brackets] to help interpret component specifications Rick's Smart Systems bid summary: Component 20 count of the following: Custom 14-Core Liquid Cooled Workstation Desktop Computer Intel Core i9 3.3Ghz, 64Gb DDR4 RAM, 5TB HDD, 512Gb SSD 750W PSU, Wi-Fi 24" Widescreen LCD Monitor, 1920x1200 60Hz 8ms DisplayPort VGA DVI-D 4xUSB 2.0; Initial Cost Recurring Cost $5,000 x 20 = $100,000 Windows 10 Pro 64-bit pre-installed [Exceeds Desktop Required & Desired] Office 365 annual subscription for all $100 x 20 = $2,000 desktop systems $2,000 annual subscription includes any upgrades [Meets Required] 2 Monochrome Laser Printers [Meets Required] Generic 6-port router with built-in basic firewall capabilities and cat 5e cabling to all workstations [Meets Required] Standard Wi-Fi Access Point [Meets Required] Comprehensive, on-call support for all on- premises network equipment during regular business hours; 5 business days MTTR for any network equipment failure; critical equipment averages 180 days MTBF. [Meets Required] $120 x 2 = $240 $800 $250 Toner and misc. costs at $100/year As much as $800/year if network needs increase $10,000/year Support cost does not increase in out-years TCO Use Case Lab Notes are included [in square brackets] to help interpret component specifications Morty's Reliable Products bid summary: Component 20 count of the following: Desktop Computer - Intel Core i7 3.2 GHz, 16 GB DDR4 SDRAM, 256 GB SSD; 17" LCD/LED Video Monitor, 1024x768 60Hz 8ms VGA, S-Video Input Initial Cost Recurring Cost $3,200 x 20 = $64,000 Windows 10 Pro 64-bit pre-installed [Meets Desktop Required] Licensed Office 2019 software installed on $200 x 20 = $4,000 all desktop systems [Meets Required] 2 Duplex Wireless Multifunction Laser $300 x 2 = $600 Printers [Exceeds Required] VLAN-capable 20-port programmable switch $3,000 with advanced firewall capabilities, QoS capability and cat 6 cabling to all workstations [Exceeds Required and Desired] Standard Wi-Fi Access Point [Meets Required] Comprehensive, on-call support for all on- premises network equipment 24/7; 8 hours MTTR for any network equipment failure; critical equipment averages 180 days MTBF. [Meets Required and Desired] $250 $25,000/year Upgrades to future Office projected at $6,000/yr Toner and misc. costs at $600/year None anticipated for 3 years even assuming network expansion Support cost increases by $2,500 each year TCO Use Case Lab In this lab, we compare two computer network purchase proposals in terms of total cost of operations (TCO). The technology firm you work for is expanding. They have purchased office facilities and furniture at the new location, and have negotiated WAN and Internet connectivity to the site. You have been asked to compare proposals to outfit and maintain the computer network from two rival companies, Rick's Smart Systems and Morty's Reliable Products. As background, you have been given the following information regarding site needs and capabilities/limitations: (Required) 20 networked desktops running Windows 10 OS o (Desired) Monitor size which accommodates comparison of multiple spreadsheets (Desired) Ability to stream/record high-resolution video (Required) Microsoft Office software for all desktops o (Desired) Latest Microsoft Office software versions throughout-years (Required) 2 networked laser printers available to all locally connected systems (Required) Initial network segmentation to 4 function-oriented subnets o (Desired) Built-in QoS and easy network reconfiguration (Required) Support for all on-premises network equipment; never more than 2 business days downtime (Desired) Never more than 1 business day downtime (Required) Support for employee and visitor Wi-Fi laptops/tablets/devices with ad hoc network connection (Required) Security appliance(s) and/or software to mitigate network intrusion and data breaches In response to your firm's RFP, two bids were received as summarized on the following pages. You must compare the proposals with an eye toward TCO and the expressed site needs. The site needs you have been given are not as specific or complete as you would ideally prefer, so you may need to make some assumptions and/or caveats regarding your selection. Be sure to identify these in your submission. Note that the selected proposal's company will be awarded a one-year contract with two optional follow-on years at prices listed in the proposal. You should also be aware that employees at this location average salaries at $50/hour, and that they cannot complete any useful work (but must still be paid) when the network is down. Turn-in Requirements: To complete the assignment, upload a Word (.docx) or Adobe (.pdf) file with your recommended proposal and a short justification of your selection, expected savings, including critical assumptions (if any) and/or caveats to the proposal acceptance (if any) as your submission to this assignment in Blackboard. 1. (10 pts) Compare the two bids 2. (5 pts) Which bid do you recommend? 3. (10 pts) What is your justification for your recommendation? 4. (5 pts) What is your projected TCO savings over three years for your recommended bid over the other bid? TCO Use Case Lab Notes are included [in square brackets] to help interpret component specifications Rick's Smart Systems bid summary: Component 20 count of the following: Custom 14-Core Liquid Cooled Workstation Desktop Computer Intel Core i9 3.3Ghz, 64Gb DDR4 RAM, 5TB HDD, 512Gb SSD 750W PSU, Wi-Fi 24" Widescreen LCD Monitor, 1920x1200 60Hz 8ms DisplayPort VGA DVI-D 4xUSB 2.0; Initial Cost Recurring Cost $5,000 x 20 = $100,000 Windows 10 Pro 64-bit pre-installed [Exceeds Desktop Required & Desired] Office 365 annual subscription for all $100 x 20 = $2,000 desktop systems $2,000 annual subscription includes any upgrades [Meets Required] 2 Monochrome Laser Printers [Meets Required] Generic 6-port router with built-in basic firewall capabilities and cat 5e cabling to all workstations [Meets Required] Standard Wi-Fi Access Point [Meets Required] Comprehensive, on-call support for all on- premises network equipment during regular business hours; 5 business days MTTR for any network equipment failure; critical equipment averages 180 days MTBF. [Meets Required] $120 x 2 = $240 $800 $250 Toner and misc. costs at $100/year As much as $800/year if network needs increase $10,000/year Support cost does not increase in out-years TCO Use Case Lab Notes are included [in square brackets] to help interpret component specifications Morty's Reliable Products bid summary: Component 20 count of the following: Desktop Computer - Intel Core i7 3.2 GHz, 16 GB DDR4 SDRAM, 256 GB SSD; 17" LCD/LED Video Monitor, 1024x768 60Hz 8ms VGA, S-Video Input Initial Cost Recurring Cost $3,200 x 20 = $64,000 Windows 10 Pro 64-bit pre-installed [Meets Desktop Required] Licensed Office 2019 software installed on $200 x 20 = $4,000 all desktop systems [Meets Required] 2 Duplex Wireless Multifunction Laser $300 x 2 = $600 Printers [Exceeds Required] VLAN-capable 20-port programmable switch $3,000 with advanced firewall capabilities, QoS capability and cat 6 cabling to all workstations [Exceeds Required and Desired] Standard Wi-Fi Access Point [Meets Required] Comprehensive, on-call support for all on- premises network equipment 24/7; 8 hours MTTR for any network equipment failure; critical equipment averages 180 days MTBF. [Meets Required and Desired] $250 $25,000/year Upgrades to future Office projected at $6,000/yr Toner and misc. costs at $600/year None anticipated for 3 years even assuming network expansion Support cost increases by $2,500 each year
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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