AS400 Decision Sept 2003 Last Fall Oliver Allen told me that the lease was extended until May...

AS400 DecisionSept 2003

Last Fall Oliver Allen told me that the lease was extended until May 2004… In reality, the current AS400 lease does end this month.

We have 3 options:

Purchase current AS400.

Extend the lease on current AS400.

Lease/Purchase new AS400.

Summary


Proposed System Benefits

Current Proposed Benefit

System

CPWCommercial Processing

Workload

210 1,020 5x

Faster

Main

Memory

2GB 4GB 2x

Memory

Disk

Storage**usable

103GB 246GB 2.5x

Disk

Processor

Tier

P30 P10 Lower Software Maintenance & Purchase Costs


Current System Deficiencies

• 5 years old. Older/Slower technology.• Additional strain of integrated EDI added last year.• Have to upgrade memory and disk to try to keep it performing.• Requires ongoing expense for software support.• Requires ongoing expense for hardware maintenance.• The next operating system upgrade (already released by IBM)

is the last O/S version supported on this machine. This machine is at the end of it’s life cycle.


• Current

Maintenance $1167Tape Drive Maint. $ 70Harbinger Maint $ 780New Form Sfw Savings $ 0Upgrades (est.) $ 200Total $2217

• Proposed

3 year lease $3213Geac Rebate (prorated) $(344)Harbinger Maint. $ 330 New Form Sfw Savings $

(208)

. .Total $2991

Monthly Comparison (AS400 only)

Total cost variance to gain benefits described:

$774 per month* Likely to be less based on other AS400 software maintenance being reduced.


Proposed LeaseExtended to Include other Projects

• We have 2 leasing companies working on numbers for us.• The proposed $246,253 lease includes:

– AS400 $118,316– Novell Server Replacement $ 7,488– Forms Software Replacement $ 56,492– AS400 Fax/Email Capability $incl above– Microsoft Operating System Upgrades & Purchases $ 10,831– Microsoft Office Upgrades and Purchases $ 53,126

• Lease designed to be an Operating Lease***• Estimated Monthly payment would be $6800-$7200.• I already have $6,200/month budgeted through the end of the year.

• This lease will cover two capital projects where we had a total of $120,000 budgeted.

***Brenda R working with leasing company and auditors to confirm.


| - - - - - - - M O N T H L Y - - - - - - - |Proposed Lease Original Lease Variance

Capital -$ 6,022.77$ System 21 Software IBM Operating Sys Sfw Hertzler Software

Operating 4,573.15$ Gateway Server Network Server 2 Laptops 25 PC's Novell Software IBM AS400

Operating 7,200.00$ IBM AS400 Network Server AS400 Fax/Email/Forms Microsoft OS & Office

TOTAL 7,200.00$ 10,595.92$ (3,395.92)$

-------------------------------------------------OR-------------------------------------------------

Operating IBM AS400 3,213.00$ 10,595.92$ (7,382.92)$

Capital Spending Network Server 7,488.00$ AS400 Fax/Email/Forms 56,492.00$ Microsoft OS & Office 63,957.00$ TOTAL 127,937.00$

AS400 Decision Sept 2003 Last Fall Oliver Allen told me that the lease was extended until May...

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