|  Posted 2002-12-03 Email Print

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

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

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