|The above graph
appears in a lot of EasyCo's advertising. It asserts that Easy-Time
ASP is a dramatically less expensive solution than locally installed
servers for (a) small systems, (b) very large systems, and (c) any
sort of complex system, including systems where some users must have
remote access. To some, the basis of conclusion is not intuitively
obvious. While we could spend 20 pages of fine print to prove the
specifics to you, what we will do here is give you the intuitive arguements.
Once you understand these, even if you might argue about a percentage
of change either way, because of the way you might engineer a solution,
you can accept the central thesis of low cost ASP for mvDBMS and use
average effective total cost of Easy-Time ASP basic service
(inclusive database rental) ranges from about $35 to $70, depending
upon database and a few other options, with some possible increase
above this for the first user, depending upon implementation
method, connecting hardware, and other client conditions. You
can confirm these numbers either by looking at our published
prices, or by using our estimator software.
average costs of the telecommunications to connect to Easy-Time
service tend to run between $5 and $25 per user, depending upon
circumstances. While it is possible to spend more than this,
the same is not necessary from the perspective of "good"
cost of connecting Easy-Time service to an existing system can
range from negligible to moderate costs, depending upon the
type of pre-existing client devices. For instance, in the case
of service provision to a single PC, install and configuration
can range from 5 to 25 minutes, and an existing 16-user serial
system can normally be retrofitted in 1-2 hours of work.
does not normally provide any special solutions for the single-user
database. Thus, most individual users cannot take advantage
of a pre-existing PC to reduce server costs. When users tend
to use the few solutions available, they tend to find themselves
saddled with very high support costs or high costs of failure.
The same can occasionally be catestrophic.
cost of a locally installed and configured database server is
normally quite high. It tends to range from a base-low of around
$8,000 to a base-high of around $20,000 at end-user prices.
To this must, of course, be added any local connectivity hardware,
and other features dependent upon size or number of users of
locally installed server must be financed, or if not financed
has an imputed cost of capital. On a 5 year lease, 40% of the
monies paid by a user are actually finance costs.
locally maintained server system must plan on maintenance costs
of 15% to 20% of the original purchase price per year of use.
If paying less than this, the user must assume that they will
eventually pay near-the-same in service costs and loss of productivity
when the server eventually fails.
locally installed server, if coincidentally connected to the
Internet, either for the purposes of allowing outsiders access
to its data, or to allow those within the premises to have access
to the Internet, must plan on significantly increased costs,
due to the consulting and customization needed to securely firewall,
as well as the need to provide for secure remote connectivity.
This cost can be extreme, as well as on-going.
number of users served by a particular server increases, while
unit hardware costs tend to decrease, unit labor costs tend
to increase at some exponent of the number of users. In systems
much beyond 40 users, administrative labor tends to become
the all-dominant cost, often running at over $100, and even
$200 per effective user-month.
has a cost. In any 5 year period, any business is likely
to change dramatically. Companies grow, shink, and move. Employees
come and go. New pressures and rules change how the company
does business. A purchase can lock one into a long term cost
structure, even though 1/3rd or 1/2 of this cost may become
useless 6 months after acquisition. In many such scenarios,
additional capital burden and work burden can turn a company
otherwise capable of adapting into an unprofitable, rather than
Using the above,
what one finds is that the total base-cost of a server ranges, with
financing and general support from a base of $20,000 to $50,000
in lifetime costs, with incremental costs for additional users,
and significant incremental costs in the event of Internet connectivity.
Dividing this out by the number of users and months of anticipated
life, one can determine the nominal monthly costs per user.
One has then
to compute one's ongoing monthly administrative labor and related
costs. While this is a relatively small amount for small systems,
perhaps only amounting to $5 to $10 per user month, it (a) tends
to increase at a significantly higher rate than the proportional
increase in users as complexity increases, and (b) tends to jump
in significant increments as, after a time, there is a need to hire
employees rather than use independent contractors.
must allow for costs of specific complexity. While a database server
tailored as the only service available to a company's users tends
to be low, as soon as the system becomes more complex, either due
to the user's needing third-party services (e-mail, web, etc.) or
outsiders needing access to the company's data, the costs of setup,
security, and administration increase exponentially rather than
your own numbers, but don't forget
ANY of your
Many users forget that they will spend $400 to $600 a year in backup
and cleaning media if following manufacturer's guidelines. Similarly,
many with high employee turn-over forget that if they have their
own system then they must retrain in systems operation and administration,
rather than just application use. They forget that a good proportion
of the money they pay their VARs is for administrative rather than
applications support. Finally, those who cut corners on maintenance
and similar costs forget to compute the costs of extended down-time
-- being out of business for a week can be very costly once one
has come to depend upon a computer. When you look at an on-site
computer, you will find that the privilege of ownership is far higher
than you ever realized. Rental really does make more economic sense
in many, if not most, cases because it reduces the complexity, and
thus cost, of doing business.