: A Real Company With A Modest Web Server Setup ✓ Solved
Auctionadscom A Real Company Had A Modest Web Server Setup That To
Write a comprehensive 3-section paper analyzing three cost options for AuctionAds.plc’s server expansion. Start with a one-paragraph executive summary including a supporting table summarizing your findings. The first section should evaluate hardware costs for replacing their current system with a modern equivalent five times larger, hosted either on-site or in a co-location facility. The second section should analyze data and processing costs for purchasing capacity from Amazon AWS/EC2, with supporting tables. The third section should discuss costs not quantifiable by data, such as staffing, cabling, backup, and insurance. Use credible references for data sources, and aim for at least five pages of detailed analysis.
Sample Paper For Above instruction
Executive Summary
This analysis compares three expansion options for AuctionAds.plc’s web server infrastructure. The first involves deploying a physical server upgrade in-house, which incurs significant hardware costs but offers control over the environment. The second considers colocating a larger, upgraded server in a data center, potentially reducing initial hardware expenses but increasing operational costs. The third explores cloud-based expansion using Amazon EC2, providing scalable processing power with different ongoing costs. A summary table below highlights the key financial considerations for each option.
| Option | Initial Hardware Cost | Annual Data & Processing Cost | Additional Costs |
|---|---|---|---|
| In-House Hardware Upgrade | $50,000 | $10,000 | Cabling, staff, insurance |
| Colocation Facility | $55,000 | $9,000 | Cabling, staff, insurance |
| AWS EC2 | $0 (cloud) | $15,000 | Staffing, management, data transfer |
Section 1: Hardware Costs
Replacing their current modest server setup with a modern equivalent five times larger involves substantial capital expenditure. The in-house hardware option requires procurement of a new server with high processing and storage capabilities. Based on market data from credible sources like Newegg and Dell, a high-end enterprise server with the required specifications costs approximately $50,000 (Dell, 2023; Newegg, 2023). This includes redundant power supplies, advanced cooling, and scalable storage options. Additional costs include installing the hardware, cabling, and staff time for deployment.
The colocation facility option entails similar hardware costs, estimated at around $55,000, accounting for premium services such as power redundancy and security (Equinix, 2023). The primary advantage is offloading facility management responsibilities, but initial costs are comparable to in-house deployment.
Section 2: Data and Processing Costs
For cloud-based expansion via Amazon EC2, ongoing costs significantly differ from hardware investments. Based on Amazon's pricing for comparable compute instances (Amazon, 2023), the monthly cost for five EC2 instances with equivalent capacity amounts to approximately $1,250, totaling around $15,000 annually. Variability depends on data transfer volume, storage needs, and specific instance types selected (AWS Pricing, 2023). In contrast, maintaining and operating physical servers involve steady costs in electricity, cooling, and staff management, estimated at around $10,000 per year.
Statistical data from industry reports suggest that cloud processing costs are increasingly cost-effective for scalable workloads, especially when factoring in elasticity, but they can become more expensive at high usage volumes or with extensive data transfer.
Section 3: Costs Without Data
Additional expenses include staffing for system administration, network management, and security measures—all of which are essential regardless of infrastructure choice. For in-house and colocation options, costs for cabling, physical security, backup systems, and insurance can add approximately 10-15% to initial hardware investments annually. In cloud scenarios, staffing costs include cloud management and monitoring—estimated at $5,000 to $7,000 per year—covering roles like cloud architects and security specialists (Gartner, 2023). Insurance, backup systems, and physical security are less relevant for AWS but are costs to consider for physical deployments.
In summary, while hardware and data costs can be quantified with current market data, operational costs such as staffing, security, and infrastructure maintenance are less straightforward and depend on company policies and service levels.
References
- Dell. (2023). Enterprise Server Pricing. Dell Technologies Store.
- Newegg. (2023). High-Performance Servers. Newegg Marketplace.
- Equinix. (2023). Data Center Services Pricing. Equinix Reports.
- Amazon Web Services. (2023). EC2 Pricing & Pricing Calculator. AWS.
- Gartner. (2023). Cloud Operations Cost Management. Gartner Insights.