Total Cost Of Ownership

This document provides an outline of the key hardware and software required for the university's new server room, along with a comprehensive total cost of ownership analysis. It includes details on the hardware specifications, server design, and pricing. The document concludes with a summary of the total cost of ownership and references.

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Total Cost Of Ownership
[Author Name(s), First M. Last, Omit Titles and Degrees]
[Institutional Affiliation(s)]
Author Note
[Include any grant/funding information and a complete correspondence address.]

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1 INTRODUCTION
This document gives an outline of the key hardware and software required by the university to
finish the setting up of the new server room to accommodate the hardware envisioned to ensure
all student access the networking simulation software and among other software from any place
at any time.
Currently, the student uses a standalone machine which has the emulator software packages
installed on them to enable the student to access the emulatorsoftware such as packet tracer for
network design purposes. This method has for the past been working very well but a recent
survey proves the system is not scalable as more student enrolls in the computer networks
classes. Most studentswants to have access to the system even from their dorm room which is
currently not possible as they have to be physically present in the computer lab. There is a
proposal to shift the methodoloty used to access the system from the current standalone to amore
robust cloud private cloud infrastructure which will not only allow the student access the
resources anywhere anytime but also ensure the system is scalable for future enrollnemtns. Such
a system require a lot of planning to enure the project feasibility is established and required cost
sources. This document provides the hardware and software requirments that shall be a
requirement to have the project up and running. The propsed design of the physical room where
the core hardware is to housed is architecturally designed in this document to enable the
implementatiion to have an easier time figuring out where each component will be placed. This
is critical for proper device installation.

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The following section describes the key hardware and software requirements, the proposed
design of the server room and a comprehensive total cost of ownership done to propose the
project to the board of the university for commissioning.
2 HARDWARE SPECIFICATION
Item Model Specs Quantity Vendor
CPU
Intel Server CPU Xeon E5-
2603V3 LGA2011-3 1.6G
BX80644E52603V3
Intel CPU designed
specifically to run cloud
infrastructure by
leveraging the design
factor used to ensure
reliable cloud processing
(Yang, Awasthi, Ghosh,
Bhimani, & Mi, 2018)
100 Intel
RAM 32GB DDR4 2666MHz Speeds start at 2666 MT/s
Faster speeds and
responsiveness than
conventional DDR4
memory
Ideal for cloud and high-
performance server.
32 Transcend

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(Tonkin, 2017)
Hard Drive 10TB
WDAC310100
The Western digital drive
shall provide ample
storage facilities for the
virtual machines
envisioned to be included
in the new server
requirements (Snelgrove,
2012).
1000 Western
Digital
Equipment
UPS
Oeveo UPS Mount 143-
10.65H x 4.3W x 11D |
Uninterruptible Power
Supply (UPS) Mount for
APC, CyberPower, Tripp
Lite, and More | UPSM-143
This is an equipment UPS
with the output voltage of
210kV
4 Oeveo
Operating
system
VM sphere 64-bit CPUs OS
able to support 2.4Ghz
CPU clock
Provide the virtualization
environment needed to run
the machines to be
virtualized (Duran, Roda,
& Macchi, 2016)
1 Oracle
Air
conditioner
Midea MAD30C1YWS
Dehumidifier 30 Pint with
The air conditioner shall
provide the cooling effect
2 MIDEA

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Reusable Filter to the massive hardware
which generates a lot of
heat due to the strong
computations handled by
the server (Banerjee, 2019)
Server HP ProLiant DL380 G5
Server
Provide the high
computational power to
service client machines
request
3 HP
3 SERVER DESIGN
The architectural design below shows the position of the various hardware that will be used to
support the deployment of the core server hardware (Pan, 2015).

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Pricing
Item Model Price(USD) Quantity Total Cost
CPU Intel Server CPU Xeon
E5-2603V3 LGA2011-3
1.6G BX80644E52603V3
146 100 14, 600
RAM 32GB DDR4 2666MHz 164 32 5,248
Hard Drive 10TB 211 100 21,100

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WDAC310100
Equipment UPS Oeveo UPS Mount 143-
10.65H x 4.3W x 11D |
Uninterruptible Power
Supply (UPS) Mount for
APC, CyberPower, Tripp
Lite, and More | UPSM-
143
43 4 172
Operating
system
VMware’s vSphere 64-bit
CPUs OS able to support
2.4Ghz CPU clock
1295 1 1295
Air conditioner Midea MAD30C1YWS
Dehumidifier 30 Pint with
Reusable Filter
259 2 518
Server HP ProLiant DL380 G5
Server
167 3 501
SUB TOTAL 43,434

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4 THE TOTAL COST OF OWNERSHIP
EXPENSES enter data
here
6
Cost category 1 Cost items subtotal
costs $
All initial costs on
purchase (one-off)
Purchase price $
42,900
Accessories $
2,500
Legal costs (eg conveyancing) $
1,200
Delivery costs $
70,000
Installation / integration / engineering / calibration
costs
$
34,000.00
Testing / initial inspection costs $
500.00
Alterations, cabling, telephone links $
54,000.00

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Initial licence costs $
44,000.00
Subtotal $
249,100
Cost category 2 Cost items unit cost # p.a. subtotal cost
$
Regular ongoing
operational costs (per
annum)
Annual licences $
12,000.00
1 $
12,000.00
Consumables eg health
and safety equipment
$
500.00
1 $
500.00
Software upgrades $
1,000.00
1 $
1,000.00
Staff training $
600.00
2 $
1,200.00
subtotal $
14,700
Cost category 3 Cost items unit cost # p.a. subtotal cost
$

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Fuel / energy costs (per
annum)
Electricity $
3,400.00
1 $
3,400.00
subtotal $
3,400.00
Cost category 4 Cost items unit cost # p.a. subtotal cost
$
Regular service and
maintenance (per
annum)
Annual maintenance $
1,200.00
1 $
1.200.00
Preventative maintenance $
400.00
1 $
400.00
Other maintenance $
600.00
1 $
600.00
Hire of replacement
equipment during
downtime
$
50.00
1 $
50.00
subtotal $
2,250
Cost category 5 Cost items unit cost # p.a. subtotal cost
$

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Anticipated downtime
(per annum)
Planned maintenance
outages - additional costs
$
1,200.00
1 $
1,200.00
Unplanned outages -
additional costs
$
1,000.00
1 $
1,000.00
subtotal $
2,200
Cost category 6 Cost items unit cost # p.a. subtotal cost
$
Additional supplier
costs (per annum)
Management costs, eg
time for meetings
$
300.00
1 $
300.00
Project management costs $
300.00
1 $
300.00
Costs associated with
additional work requested
$
3.00
1 $
400.00
Supplier travel and
accommodation costs
$
300.00
5 $
1,500.00
National / International
calls to contact supplier
$
10.00
1 $
10.00
Overtime costs $
5.00
1 $
5.00

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Subtotal $
2,515.00
Cost category 7 Cost items subtotal cost
$
Disposal costs (one-off
not per annum)
Decommissioning / deconstruction costs $
2,500.00
Cost of transportation of equipment from site $
300.00
Disposal costs eg hazardous items $
300.00
Restoration of site to original state $
300.00
Write-off $
200,000.00
Subtotal $
203,400
INCOME
Income on disposal
(one-off not per
annum)
Income items subtotal
income $
Resale / salvage value of equipment $

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2,500.00
Resale / salvage value of parts $
300.00
Resale / salvage value of operational items, eg, ink
cartridges
$
500.00
Subtotal $
3,300.00
Summary
Total initial costs
249,601
Total expenses p.a. 231,765
Total expenses over
whole-of-life 481,366
Total income
3,000.00
TOTAL COST OF
OWNERSHIP
478,366

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Conclusion
The document has elaborated and provided into details the key hardware requirements that are
needed to fulfill the requirements of the new system the university envisions. Each hardware is
critically analyzed for the right model that suits the given workload, the quantity required and
finally the cost. This is key to ensure reasonable cost is adhered to while delivering the design.

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All the software license is equally critically analyzed and an optimum license that suits the
estimated number of student is put into perspective. The document further analyzed into detail
the total cost of ownership of the project by. This is done by checking the following costs;
Purchase price Accessories Legal costs (eg conveyancing) Delivery costs Installation /
integration / engineering / calibration costs Testing / initial inspection costs Alterations, cabling,
telephone links Initial licence costs Consumables eg health and safety equipment, Software
upgrades , Staff training, Electricity, Annual maintenance, Preventative maintenance
Other maintenance,Hire of replacement equipment during downtime,Planned
maintenance ,outages ,Unplanned outages - Management costs, eg time for meetings
Project management costs, costs associated with additional work requested, Supplier travel and
accommodation costs National / International calls to contact supplier, Overtime costs
Decommissioning/construction costs, Cost of transportation of equipment from site, Disposal
costs eg hazardous items Restoration of site to original state, Write-off
When this cost were summed and the net revenue deducted, the total cost of ownership stood at
$478,366

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REFERENCES
Banerjee, M. (2019). Six ways programming, maintenance help collaborative robots: Good
programming and maintenance of a collaborative robot can provide manufacturers many
benefits such as better return on investment (ROI), lower total cost of ownership (TCO),
and more. Control Engineering, (1), 64.
Duran, O., Roda, I., & Macchi, M. (2016). Linking the Spare Parts Management with the Total
Costs of Ownership: An Agenda for Future Research. Journal of Industrial Engineering
& Management, 9(5), 991–1002. https://doi.org/10.3926/jiem.2083
Pan, F. (2015). The optimization model of the vendor selection for the joint procurement from a
total cost of ownership perspective.

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Snelgrove, T. (2012). Value pricing when you understand your customers: Total cost of
ownership - Past, present and future. Journal of Revenue & Pricing Management, 11(1),
76–80. https://doi.org/10.1057/rpm.2011.35
Tonkin, T. (2017). Proving the Business Case - Are We Getting the Return We Forecasted?
Workforce Solutions Review, 8(1), 20–23.
Yang, Z., Awasthi, M., Ghosh, M., Bhimani, J., & Mi, N. (2018). I/O Workload Management for
All-Flash Datacenter Storage Systems Based on Total Cost of Ownership.
https://doi.org/10.1109/TBDATA.2018.2871114

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APPENDIX A: HP SERVER PRICE LIST

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APPENDIX B: UPS PRICE LIST

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