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Appendix C – Payback period calculation

In calculating the estimated payback period, we assume that investment costs occur at the beginning of the year

and we spread annual costs evenly throughout the year. Dell provided the components of the Dell PowerEdge

R710 solution. The investment costs include the following:

•

Intel Xeon Processor X5550-based Dell PowerEdge R710 server with 96 GB of memory and two four-

core processors. The list price for this server is $16,152.

•

Dell™ EqualLogic™ PS6000XV storage with 16 450GB 15,000 RPM disks. The list price of the storage

array is $55,000. We assign half ($27,500) of the storage array costs to this solution based on the

assumption that the array is a resource that can be shared with other workloads.

•

Migration costs. We assume a migration cost of $905, based on our estimate of 12 person hours required

for planning and migration tasks at a burdened hourly rate of $55.61, totaling $667, and a prorated

VMware training cost of $238 for the server administrator.

Figure 10 shows the payback calculation for the Dell PowerEdge R710 solution and the seven HP ProLiant

DL385 solutions.

One-time initial investment (includes server,

storage hardware, and migration costs)

Monthly cost (annual costs divided by 12; includes

hardware support, maintenance and service

contracts, software licenses and support

agreements, facility costs, energy costs, and

management costs)

Payback period

Figure 10: Payback calculation for the Dell PowerEdge R710 solution and the seven HP ProLiant DL385 solutions.

The server and storage hardware costs for the Dell PowerEdge R710 solution included the list price of the Dell

PowerEdge R710 server and the list price of the Dell EqualLogic PS6000 storage solution multiplied by the 50

percent of that solution that the test databases require. For the HP ProLiant DL385 solution server, these costs

included the replacement costs for failed disks. We made the following assumptions in estimating these costs:

•

The enterprise would dedicate the entire newer Dell PowerEdge R710 server to the tasks that the servers

it was replacing carried out; we therefore included the entire cost of the newer Dell PowerEdge R710

server in our analysis.

•

As they were in our tests, the log files would be on two internal disks on each server.

•

Other servers in the data center would share the storage in the Dell PowerEdge R710 solution and the

enterprise would apportion storage costs based on the percentage of the storage solution used. We

estimated that the high-demand DS2 workload we used in our cost calculations would use less than 10

percent of the storage capacity of the Dell EqualLogic PS6000 storage solution but would require most of

the IOPS capacity of the storage during peak load. Balancing the available storage and IOPS, we

estimated that half the storage capacity would be available for low-demand storage or for off-hours

processing.

•

The enterprise would dedicate both the HP ProLiant DL385 solution servers and storage enclosures to

the tasks our benchmark tests model.

•

The migration costs included an estimate of staff time to migrate software and data from the HP ProLiant

DL385 solution to the newer solution.

We made the following assumptions in estimating the support, maintenance, and service contract costs for

hardware:

Principled Technologies, Inc.: Initial investment payback analysis: Dell PowerEdge R710

solution with VMware ESX vs. HP ProLiant DL385 solution

HP ProLiant

Dell PowerEdge

DL385 solutions

R710 solution

$0.00

$3,413.67

17.6 months ($44,556.55/$2,534.36=17.6)

Difference

$44,556.55

(HP ProLiant

DL385 is lower)

$2,534.36

$879.31

(Dell PowerEdge

R710 is lower)