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Options for system reliability include:

Optional Items Cost Description

Spare system $9,250 Backup Set
Replace Service Contract $1,300 Annual Contract for Unit Replacement within 24 Hours
Onsite Survey and Installation Charge $4,000 To Ensure All Required Equipment is Available for Installation
Installation and Maintenance Training Cost $1200 Training for Actual Installation

Suggested options to purchase are:

Suggested Options Cost Description

Onsite Survey and Installation $4,000 To Ensure the Installation Is Well Planned
Installation and Maintenance $2,400 Sending Two People for Installation and Training Maintenance Training
Total Costs: $6,400

THE FINAL ANALYSIS

Several new factors became apparent during the research process. These became part of the decision- making process: the availability of fiber repeaters with no other designated use; discovery of an existing infrared installation at a company location on the East Coast; and building management, fearing harm to its employees, resisting the use of infrared lasers.

To complete the analysis, these items were included in the final recommendation. The analysis of the technology benefits is provided to gain insight from the available technology and present the applicable situation scenarios for each option. (Exhibits 2 and 3 are grid comparisons of these technologies.)

Weighing the Factors

The comparison of the technologies alleviates concerns for data security, as all three methods provide for secure data. Both of the wireless technologies, however, offer a lower data reliability factor on a daily basis. The weather in the region of the remote corporate location is subject to dramatic shifts, which are detrimental to the wireless technologies. Obviously, electrical outages could affect the users in the same way for physical wire options; these outages would also effect any work they might conduct.

All three technologies are available to install within the time frames required, with the possible exception of the FCC licensing required for the microwave option. Certainly, the licensing for the microwave option could have a serious impact on the ability of the staff to work on the scheduled date. This is a high consideration from a work- due- date standpoint and the organization’s potential liability for missed due dates.

It would be advantageous to own the equipment as offered by either the microwave or infrared options for net costs, given the organization’s business goals to downsize in the near future. The high up- front costs for the technologies were also noted. This investment in materials would have to be to the long- term advantage of the organization.

Cost Comparisons

Costs are certainly a consideration, but they are not always the prime consideration. The following cost comparisons are based on the pure costs of the three systems for network data connectivity. Items to be considered in the final cost estimates include estimates for equipment required for connectivity, purchased equipment depredation, and use of any existing equipment.

Total Cost of fiber optics $19,600
Total Cost of microwave $20,950
Total Cost of infrared $28,600

The depreciation on the purchased equipment averages approximately 50% based on the schedule of depreciation that was current at the time of decision making. This would reduce the cost of the microwave by $10,475 and infrared options by $14,300. A significant savings in using fiber optics would come through permission to use the existing company fiber optic repeaters for the remote location installation. This would reduce those costs by $11,200. These considerations factored in yield the following numbers:

Total Cost of fiber optics $8,400
Total Cost of microwave $10,475
Total Cost of infrared $14,300

From a cost comparison aspect, fiber optics would be the most cost-effective method of installation.

RECOMMENDATIONS

To recap, the considerations for the recommended solution must address the following issues in order of importance. The solution must:

1.  Be fully functional in time to coincide with the contractor’s relocation to the company’s new space in the adjacent building.
2.  Provide reliable connectivity and an acceptable response time similar to that which is currently available.
3.  Be supportable by the existing technical staff.
4.  Come in line with the costs of the other solutions.

Each of the technologies was reviewed based on the above criteria. The recommendation discussed in this article was based on this specific situation and may not meet criteria for other situations. The technical notes following the recommendation provides highlights for future technology reviews.


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