Tool: Reading the Meter - Projects Management

Projects: Management - Baseline

Home

Projects: Management

Tool: Reading the Meter

Renew Your Subscription

Projects: Management

Tool: Reading the Meter
By Baselinemag
2002-12-03

Article Views: 600
Article Rating:

/ 0

Rate This Article:

Add This Article To:

Digg this

Del.icio.us

Slashdot

Y! My Web

E-mail

Furl

Google

Simpy

Spurl!

PDF Version

Use our online calculator to determine the costs and benefits of implementing a network based on a pay-as-you-go approach.

Use the worksheet below to calculate the costs and benefits of implementing a network based on a pay-as-you-go approach. This example, taken from a model created by utility computing software vendor Ejasent, pools computing resourcse for an enterprise or a service provider to use in its own data centers.

Instructions: Only enter values in steps A, B, C, E and F below. The other values will be calculated automatically for you.

Step 1: The Basics	YOUR COSTS	EXAMPLE
A. How many servers do you want to eliminate?		75
B. How many CPUs does each server have, on average?		4
C. What is the average total cost of ownership per server per year?	$	$48,000
Step 2: Costs & Benefits
D. This subtotal will show how much you could save over three years.	$	$10,800,000
E. How much will it cost to move the servers (listed in step A above) to utility computing? Fixed setup fees begin at $50,000, but could range as high as $1 million.	$$250,000
F. What are your per-processor costs? In our example, the meter runs at $2,500 per processor per year.	$$2,500
G. This subtotal shows how much usage fees would run over 3 years.	$	$2,250,000
H. Net savings: This subtotal subtracts cost and use fees from the potential savings.	$	$8,300,000
Step 3: The Return
ROI. Here, you'll find the 3-year return on your investment by dividing the net savings by the total costs.	%	332%
Payback period. This shows how many months after setup you'll see a return, assuming amortization over 3 years.	months	8.33 months

Full story
Find out more in Baseline's primer on utility computing.

	Discuss Tool: Reading the Meter

	>>> Be the FIRST to comment on this article!



	>>> More Projects: Management Articles >>> More By Baselinemag

Email Article To Friend ♦ Print Version Of Article ♦ PDF Version Of Article

FREE ZIFF DAVIS ENTERPRISE ESEMINARS AT ESEMINARSLIVE.COM

Nov 4, 1 p.m. ET
Reduce the Risk of Email Downtime and Lower Your Total Cost of Ownership with Michael Krieger. Sponsored by Dell MessageOne

Nov 5, 12 p.m. ET
Thinking Fast: Quick Recovery from IT disasters with Michael Krieger. Sponsored by Riverbed

Nov 6, 1 p.m. ET
Save Money and Energy through: APC's New Solutions Provide Availability, Agility and Reduced TCO with Aaron Goldberg. Sponsored by APC

Nov 10, 2 p.m. ET
Unlocking the Business Value of Information: Data Security: Unlease Your Full Business Potential with Michael Krieger. Sponsored by IBM

Nov 12, 2 p.m. ET
Email Archiving: A Strategic Approach to e-Discovery and Litigation Readiness with Chris Yeich. Sponsored by Proofpoint

Nov 18, 1 p.m. ET
Take IT Services to the Next Level - Making Service Improvement Real with Michael Vizard. Sponsored by HP

Nov 19, 1 p.m. ET
Unlocking the Business Value of Information: An Architecture for Information on Demand with Michael Krieger. Sponsored by IBM

Nov 21, 2 p.m. ET
Improving SAP Service Levels with IBM Information Infrastructure with Joel Shore. Sponsored by IBM

More Upcoming Events!


		Let Cisco Transform Your Business With 802.11n Work Less. Deliver More. Try Crystal Reports® Server 2008 Introducing the multi-function MC75 from Motorola. Avoid the crash. Arm your Road Warriors with SSD Get the new Treo™ Pro smartphone by Palm® Microsoft SQL Server 2008. Learn More. PAY UP TO 30% LESS FOR COLOR PRINTING. Get a free trial of Fair Isaac® Blaze Advisor®. Get Tech On Tap technical enewsletter from NetApp. Download the “Best Antivirus Product of 2007” Improve the customer experience with Dialogue

FEATURED CONTENT

SMART MFPs?
HOW ABOUT GENEROUS TOO?

Visit hp.com/go/8060 for more information!

Sponsored by

DOWNLOADABLE ROI CALCULATORS & TOOLS FROM BASELINE

Calculate Cost and ROI of Spam, VOIP, RFID, Sarbanes-Oxley and more...

Featured Calculators:

See More Tools!
By Category| Planners |Calculators | Quizzes

	LATEST STORIES
	- Auto Execs Testify as Legislators Try for De... - GE Embraces Blogs, Some See Disclosure Worry - Microsoft Rules Out Buying Yahoo But Likes S... - Auto Execs Set for More Grilling on Aid Plan - New Yahoo CEO Must Be Willing to Do Microsof...

Baseline:	Issue Index \| Contact Us \| About \| Media Kit \| Magazine Customer Service \| Navigation Guide
Quick Links:	Project Planners \| Enterprise Resource Planning \| Network and Online Security \| Data Analysis \| Process Management \| Storage Devices\| Link to Us

	Ziff Davis Enterprise Home \| Contact Us \| Advertise \| Link to Us \| Reprints \| Magazine Subscriptions \| Newsletters Tech RSS Feeds \| White Papers \| Tech Podcasts \| Tech Video \| VARs \| System Builder
	Baseline \| Careers \| Channel Insider \| CIO Insight \| DesktopLinux \| DeviceForge \| DevSource \| eSeminars \| eWEEK \| Enterprise Network Security \| LinuxDevices \| Linux Watch \| Microsoft Watch \| Mid-market \| Networking \| PDF Zone \| Publish \| Security IT Hub \| Strategic Partner \| Web Buyer's Guide \| Windows for Devices
	Developer Shed \| Dev Shed \| ASP Free \| Dev Articles \| Dev Hardware \| SEO Chat \| Tutorialized \| Scripts \| Code Walkers \| Web Hosters \| Dev Mechanic \| Dev Archives \| igrep Use of this site is governed by our Terms of Use and Privacy Policy
	Copyright ©1996-2008 Ziff Davis Enterprise Holdings Inc. All Rights Reserved. eWEEK and Spencer F. Katt are trademarks of Ziff Davis Enterprise Holdings, Inc. Reproduction in whole or in part in any form or medium without express written permission of Ziff Davis Enterprise Inc. is prohibited.

Baseline:	Issue Index \| Contact Us \| About \| Media Kit \| Magazine Customer Service \| Navigation Guide
Quick Links:	Project Planners \| Enterprise Resource Planning \| Network and Online Security \| Data Analysis \| Process Management \| Storage Devices\| Link to Us

	Ziff Davis Enterprise Home \| Contact Us \| Advertise \| Link to Us \| Reprints \| Magazine Subscriptions \| Newsletters Tech RSS Feeds \| White Papers \| Tech Podcasts \| Tech Video \| VARs \| System Builder
	Baseline \| Careers \| Channel Insider \| CIO Insight \| DesktopLinux \| DeviceForge \| DevSource \| eSeminars \| eWEEK \| Enterprise Network Security \| LinuxDevices \| Linux Watch \| Microsoft Watch \| Mid-market \| Networking \| PDF Zone \| Publish \| Security IT Hub \| Strategic Partner \| Web Buyer's Guide \| Windows for Devices
	Developer Shed \| Dev Shed \| ASP Free \| Dev Articles \| Dev Hardware \| SEO Chat \| Tutorialized \| Scripts \| Code Walkers \| Web Hosters \| Dev Mechanic \| Dev Archives \| igrep Use of this site is governed by our Terms of Use and Privacy Policy
	Copyright ©1996-2008 Ziff Davis Enterprise Holdings Inc. All Rights Reserved. eWEEK and Spencer F. Katt are trademarks of Ziff Davis Enterprise Holdings, Inc. Reproduction in whole or in part in any form or medium without express written permission of Ziff Davis Enterprise Inc. is prohibited.