Cloud Adoption Policy Addendum

BallotOnline's IT Budget and Infrastructure Summary

Each year, the executive leadership team of BallotOnline establishes an IT budget for the

organization, which is based on revenue projections. Consider that BallotOnline's current year

revenue is about $100.8 million, and the IT budget is 10 percent of that revenue ($10.8 million). The

company's executive leadership has given IT management a directive that the IT budget must shrink

over time as a percentage of revenue, and within five years it must comprise no more than 5 percent

of revenue.

IT management has given you a directive to make recommendations that will enable a 1 percent

reduction in the IT budget as a percentage of revenue annually as illustrated in the table below.

Current Year (Year 0) Year 1 Year 2 Year 3 Year 4 Year 5

IT Budget

10% of revenue

9% of revenue

8% of revenue

7% of revenue

6% of revenue

5% of revenue

Revenue $100.8 million

$110 million

$132 million

$156 million

$186 million

$225 million

BallotOnline's IT budget allocations for the current fiscal year

Budget Item Allocation for Current Fiscal Year

Capital Expenses $ 4 million

Data Center Hardware Purchases

Hardware capital expenses are depreciated over a five-year period

Learning Resource

Budget Item Allocation for Current Fiscal Year

Operating Expenses Tied to Capital Expenses $800,000

Support and maintenance expenses for data center hardware purchases

General Operating Expenses (includes data center colocation fees) $6 million

Includes data center colocation fees (space, power, and cooling), telecom costs, staffing, cloud hosting, software, etc.

Current and proposed IT infrastructure—servers

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Number of Physical Servers and Network Devices

800 1200 1600 1600 2000 2000

Number of Data Centers 4 6 8 8 10 10

Current server specifications (year 0):

400 application servers (2 CPUs, 4 cores, 32GB RAM, Linux OS)

400 database servers (4 CPUs, 8 cores, 64GB RAM, Linux OS, MySQL DB)

Proposed storage and data transfer needs

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Storage (in GB) 0 50000 66500 66500 83125 103906

Data Transfer (in GB) 0 50,000 66500 66500 83125 103906

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