Highlights
I. Objective
The assignment is inspired by a real-life case. In particular, you are introduced to a kind of a non-technical problem-solving task that IT professionals often have to deal with in practice. The assignment develops the students’ skills in problem solving, analysis and reporting.
Assignment 1
Imagine that the bank you work for is about to buy a software product for a new application. After researching the market, it has been concluded that there are 3 alternatives: a commercial package (Product A), a cloud-based SaaS product (Product B) and a commercially supported open-source software (Product C). Your manager has asked you to perform a comparative study of the 5-year costs of the 3 products, based on the variation of the number of users that will have access to the application and prepare a power-point presentation that summarizes your findings and conclusions.
After contacting the products’ vendors, talking to your colleagues at the bank and researching the market you have identified the following facts:
Product A
Product A consists of 5 components (sub-products) that are all required for the new application, however, they are licensed independently:
It is estimated that in order to be able to perform adequately in the production environment, Product A requires 4 CPUs for up to 300 Users, 6 CPUs for 301 to 600 Users and 8 CPUs for 601 to 1000 Users.
Additionally, the new application will have a disaster recovery site for which the license cost for product A is calculated as 40% of the license fee of the production site assuming that the production site license fee is calculated with 0 (zero) Users. Note that, given its purpose, the disaster site still needs to have the appropriate processing power in order to be able to accommodate the same number of users as the production environment.
Additionally, starting from the second year, for Product A, the bank will have to pay the product vendor an annual 21% maintenance fee over the final product license fee (where the final product license fee includes both the production and the disaster recovery sites).
Product B
The cloud-based SaaS product (Product B) uses a hybrid license and subscription-based pricing. The license for Product B is based on the number of different Users and the respective roles that will have access to the product. The facts for Product B are as follows:
There is no disaster recovery site cost for Product B, given that this is a cloud-based solution.
Product C
The commercially supported open-source product (Product C) license is subscription-based (i.e. maintenance only), starts from the first year and costs 30,000£ per year, per CPU installed on the application server that the product will run.
It is also estimated that in order to be able to perform adequately in the production environment, Product B requires 4 CPUs for up to 400 Users, 8 CPUs for 401 to 600 Users and 10 CPUs for 601 to 1000 Users. The cost of the disaster site for Product C is zero.
Hardware
Each CPU (H/W) of the production and disaster environments is acquired at a cost of £6,000 and has an annual maintenance fee of 10% over the acquisition cost. The CPU’s (H/W) maintenance fee starts from the second year.
Questions
Based on the facts above, in order to prepare the presentation to your manager, you should perform the following tasks:
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