7 responses

  1. Paul
    December 21, 2011

    is that cost analysis a true TCO? from our experience most of the ongoing (not upfront) costs come in management and support…. i’ve no idea if its factually correct but i would suspect that a converged system comes with operational cost benefits…. lots.

    We’ve seen it in telecommunications, energy, applications…why wouldn’t it be true in this space?

    • Krishnan Subramanian
      December 21, 2011

      Yes Paul. It is not an apples to apples comparison (a fact I noted in the Twitter discussion on this topic). But the fact I am trying to get out of community is if they prefer converged infrastructure for other advantages even if it is a premium. The idea behind the post is to get discussion around the cost aspects.

  2. Ranjit Nayak
    December 22, 2011

    Krish,

    The CFO quoted in the blog has not taken into account Operational Expenses with the initial Capital Expenses. Your blog lists several potential gains with the UCS which will almost certainly be accrued in a cloud environment that demands scalability,agility, and dynamic workload balancing. The CFO quoted has not taken into account, management of the infrastructure beyond the initial installation.

    For a holistic view of the Total cost of ownership Data Center Managers should look at the UCS TCO/ROI tool (http://www.cisco.com/en/US/solutions/ns340/ns517/ns224/tools/data_center_value_zone.html#~Advisor_Tools)

    Ranjit

    • Krishnan Subramanian
      December 22, 2011

      Thanks Ranjit. Definitely not the right way to calculate cost. I am using this blog post as a build up for future discussion on the cost of the management tools, etc..

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