Virtualization Cost/Benefit Analysis
sebas_Avila26
3-3SpreadsheetExampleInNotes.xlsxVariables
| Variables used in the spreadsheets | |||
| value | variable name | comment | |
| current | 20 | currNumServers | current number of servers (physical) |
| 300 | currServerMaintenance | current server maintenance contract cost/year/server | |
| 1.03 | year4SMIncrease | increase in server maintenance cost beginning year 4 | |
| 75 | currAdminCost | current administrative cost/hour in dollars | |
| 1000 | powerCostPerYear | cost of power for 1 server/year - current base rate | |
| 1.02 | year3PowerIncrease | increase in power cost per kWH starting year 3 | |
| 0 | currOutsideServiceCost | current outside services hard cost total | |
| admin | 0.25 | backupTime | time in hours to back up 1 server/day |
| 168 | adminTime | time in hours to administer 1 server/year | |
| proposed | 3 | numNewServers | number of new servers to be purchased |
| 21000 | costNewServer | cost of each new server | |
| 4000 | costNewSoftware | cost of new virtualization software/server | |
| 0.2 | costSoftwareMaintenance | cost of new software maintenance contract (% of cost, $0 year 1) | |
| 600 | newServerPowerCost | cost of powering 1 new server/year | |
| 2100 | newServerMaintenance | cost of new server maintenance contracts/year | |
| 2 | numTraineesYr1 | number of employees needing training in year 1 | |
| 1 | numTraineesAfterYr1 | number of employees needing training after first year | |
| 1500 | trainingCost | cost to train 1 new employee/year | |
| constants | 52 | weeksPerYear | number of weeks/year |
| 24 | hoursPerDay | number of hours/day | |
| 8 | adminDay | number of hours/administrative day | |
| 2080 | adminHoursPerYear | number of hours an administrator works per year (= 8 hrs/day * 5 days/week * 52 weeks/yr) | |
| 168 | hoursPerWeek | number of hours in 1 week (7 day week) (= 24 hrs/day * 7 days/week) | |
| 365 | daysinYear | number of days in 1 year | |
| 260 | adminDaysPerYear | number of administrative days per year (5 days/week * 52 weeks/yr) |
Current Cost Structure
| Current Yearly Costs | |||||||
| Category | Cost | Notes | |||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Hard Costs | |||||||
| Power | 20,000.00 | 20,000.00 | 20,400.00 | 20,400.00 | 20,400.00 | 20 servers X $1000/year | |
| Server Maintenance | 6,000.00 | 6,000.00 | 6,000.00 | 6,180.00 | 6,180.00 | 20 servers x $300/year | |
| Outside Services | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | all operations handled by staff | |
| Total Yearly Hard Costs | 26,000.00 | 26,000.00 | 26,400.00 | 26,580.00 | 26,580.00 | ||
| Total Five Year Hard Costs = | 131,560.00 | ||||||
| Soft Costs | |||||||
| Machine Administration | 252,000.00 | 252,000.00 | 252,000.00 | 252,000.00 | 252,000.00 | assume 1 week/server/year | |
| Backup | 136,875.00 | 136,875.00 | 136,875.00 | 136,875.00 | 136,875.00 | assume 15 min/day/server | |
| assume $75/hr administrative cost | |||||||
| Total Yearly Soft Costs | 388,875.00 | 388,875.00 | 388,875.00 | 388,875.00 | 388,875.00 | ||
| Total Five Year Soft Costs = | 1,944,375.00 | ||||||
| Total Yearly Current Costs = | 414,875.00 | 414,875.00 | 415,275.00 | 415,455.00 | 415,455.00 | ||
| Total Five Year Costs = | 2,075,935.00 |
Virtualized Cost Structure
| Virtualized Infrastructure Yearly Costs | |||||||
| Category | Cost | Notes | |||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Hard Costs | |||||||
| Machine Purchases | 63,000.00 | 3 servers x $21K/server | |||||
| Software Purchases | 12,000.00 | VMWare/server | |||||
| Software Maintenance | 0.00 | 2,400.00 | 2,400.00 | 2,400.00 | 2,400.00 | 3 VMWare at 20% maintenance | |
| Power | 1,800.00 | 1,800.00 | 1,836.00 | 1,836.00 | 1,836.00 | 3 servers x $600/year | |
| Server Maintenance | 6,300.00 | 6,300.00 | 6,300.00 | 6,489.00 | 6,489.00 | 3 servers x $2100/year | |
| Training | 3,000.00 | 1,500.00 | 1,500.00 | 1,500.00 | 1,500.00 | 2 employees year 1, 1/year thereafter | |
| Outside Services | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | all operations handled by staff | |
| Total Yearly Hard Costs | 86,100.00 | 12,000.00 | 12,036.00 | 12,225.00 | 12,225.00 | ||
| Total Five Year Hard Costs = | 134,586.00 | ||||||
| Soft Costs | |||||||
| Machine Administration | 37,800.00 | 37,800.00 | 37,800.00 | 37,800.00 | 37,800.00 | ||
| Backup | 20,531.25 | 20,531.25 | 20,531.25 | 20,531.25 | 20,531.25 | ||
| Total Yearly Soft Costs | 58,331.25 | 58,331.25 | 58,331.25 | 58,331.25 | 58,331.25 | ||
| Total Five Year Soft Costs = | 291,656.25 | ||||||
| Total Yearly Proposed Costs = | 144,431.25 | 70,331.25 | 70,367.25 | 70,556.25 | 70,556.25 | ||
| Total Five Year Costs = | 426,242.25 |
Project Cost Summary
| Virtualization Project Cost Summary | ||||||
| Category | Cost | |||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
| Current Infrastructure Costs | ||||||
| Total Yearly Hard Costs | 26,000.00 | 26,000.00 | 26,400.00 | 26,580.00 | 26,580.00 | |
| Total Five Year Hard Costs | 131,560.00 | |||||
| Total Yearly Soft Costs | 388,875.00 | 388,875.00 | 388,875.00 | 388,875.00 | 388,875.00 | |
| Total Five Year Soft Costs | 1,944,375.00 | |||||
| Virtualized Infrastructure Costs | ||||||
| Total Yearly Hard Costs | 86,100.00 | 12,000.00 | 12,036.00 | 12,225.00 | 12,225.00 | |
| Total Five Year Hard Costs | 134,586.00 | |||||
| Total Yearly Soft Costs | 58,331.25 | 58,331.25 | 58,331.25 | 58,331.25 | 58,331.25 | |
| Total Five Year Soft Costs | 291,656.25 | |||||
| Net Five Year Hard Cost Savings | -3,026.00 | |||||
| Net Five Year Soft Cost Savings | 1,652,718.75 | |||||
| Net Five Year Overall Cost Savings | 1,649,692.75 |
