TCOAnalytics

Total Cost of Ownership Analysis Sapura Synergy Philippines
Evaluating Education IT Infrastructure

Purchases in the Philippines.
By Nicolas V. Servino Jr. Education Solutions Manager Sapura Synergy Philippines.
IT Infrastructure in Education is a booming business since

the day computers made a serious impact on how people
think and work. Schools have adapted numerous forms of
IT implementations, and numerous variations and flavors
to suite their needs.
"If someone brings a lot of new

technology into your school district,
and doesn't provide staff
development, the only thing that will
change is your electric bill."
Dr David Thornburg
In the Philippines, numerous schools have fallen prey to the promise of Technology, that they fall short in
evaluating what is suitable for their school and its requirements. Also since most schools have increased
expenditure on Hardware/Software, their expenditure on maintenance and upkeep has drastically
increased as well.
TOTAL COST OF OWNERSHIP
Total cost of ownership (TCO) is a financial estimate designed to help consumers and enterprise managers assess
direct and indirect costs. The clear advantage of seeing a specific purchase requirement (commonly for
hardware/software, mechanical/Industrial related items) holistically and defined by a particular timeframe is
that the real value of the purchase, and the underlying costs that would become imminent over time.
TCO tries to offer a statement on the financial impact of deploying information technology during its whole
life-cycle. The general idea is to look at the whole expense within a specific timeframe that the equipment
is effectively at work and what it would cost for it to continue working after it has exhausted the described
time.
Prepared by Nicolas V. Servino Jr. for Sapura Synergy Phiilippines. All rights reserved 2008 1
Depending on the IT deployment the

following elements can be included in the
Total Cost of Ownership TCO:
• End-user computer Hardware purchase costs
• Software license purchase costs
• Hardware and Software Implementation / deployment costs
• Hardware warranties and maintenance costs
• Software license tracking costs
• Operations Infrastructure Costs
• Infrastructure (floor space) costs
• Cost for electricity and cooling.
• Network hardware and software costs
• Server hardware and software costs
• Testing costs
• Cost to upgrade or scalability
• IT Personnel costs
• "C" Level Management Time costs
• Backup and Recovery Process costs
• Costs associated with failure or outage
• Diminished performance incidents (i.e. users having to wait)
• Costs of security breaches (in loss of reputation and recovery costs)
• Technology training costs of users and IT staff.
• Audit costs
• Insurance costs
• Replacement costs
• Migration costs
• Decommissioning costs
IT IMPLEMENTATION IN PHILIPPINE EDUCATIONAL INSTITUTIONS
A typical Philippines School IT Shopping List would include the following:
1. Workstations for Staff (Midrange Specs) ...studies show that

2. Workstation for Labs (usually Midrange)
3. Laptops for Management (Usually Mid range) management costs
4. Office Suite Software (usually MS Office) and overhead actually
5. Adobe Productivity Software (Usually Photoshop, Illustrator or CS Suite)
6. PC Based Servers account for the
7. Microsoft Visual Basic Software majority of the costs
8. Microsoft Server Softwares
9. Anti-Virus Software
10. Accounting Application Software (Usually Peachtree or Quicken)
Elementary and Secondary Schools also have specific application requirements for different subjects such
as math, music, sciences and even computer literacy.
Higher Education on the other hand require specialized applications for various courses. Their requirements
and procurements are often dictated by the industry that their graduates will be in.
Unfortunately in the Philippines, the Department of Education (DepED) and the Commission on Higher
Education (CHED) are not in a position to provide clear guidelines on IT Implementations and
Procurements. They even engage in ridiculous, overpriced purchases.
Usually a team of teachers/IT Staff of their own respective schools/universities determine which items the
school will be needing (If its a public school or a government school an IT board/council determines the
list). This list is a consolidation of requirements presented by each department and is matched with a
particular IT equipment. This is then reviewed by the Finance department during an appropriations
meeting.
The Philippines for the longest time has anchored its IT Infrastructure investments on Microsoft Platforms.
Microsoft has long been considered the ubiqiutous choice for IT implementation around the world,
overtaking Apple as the leader in Personal Computing in the late eighties towards early nineties. The fact
that there are considerable amount of Microsoft Certified Experts (MCE) and Microsoft Certified
Professionals (MCP) is proof that Microsoft has a huge footprint in the IT industry here in the Philippines.
Thus, most of the recommendations prepared by IT Managers/Directors are inclined towards a Microsoft
based approach.
The emergence of new players like the open-source Linux and the renaissance of Apple has brought forth
choices for schools and Industries alike. This poses a big problem for decision makers in their respective
schools and universities, as most of their competencies are Microsoft inclined, therefore, choices are still
limited.
IT RELATED PROBLEMS OF EDUCATIONAL INSTITUTIONS:
Since Technology has been moving at a faster pace, requirements

have changed drastically as well. Technology that was considered
... between the years 2000 “High Tech” before are now either upgraded or updated. to suite the
current requirements. The proliferance of open source applications
and 2002, U.S. companies both web-based and workstation-based has indeed changed the
spent about $130 billion on computing preferences and performance of people. The Microsoft era
(almost everbody is using MS Office since its inception) is now being
software and hardware that challenged by online office suites, as well as open source applications
they ultimately didn’t need. that are comparable to the Big three ( Word, Powerpoint and Excel).
Decision makers are now challenged to prepare a comprehensive, up
And Gartner says these to date and relevant list of IT Requirements.
figures jump to $540 billion
on a global scale. Procurement List, inspite of these relevant changes in the IT industry
are still treading towards their previous inclination. Although this is
not necessarily wrong, but they are now challenged by other solutions
that may prove more effective for their respective schools.
The list oftentimes lack depth and detail as to:
1. Who will be the target users. Who are the secondary users.
2. Who will be managing the equipment. What is the extent of usage of the equipment.
3. How many people are assigned to provide local support for the equipment.
4. Is there a timeframe for the effectivity of the equipment?
5. What will be the upkeep and maintenance plan. What happens when there is a virus infection.
Is there a downtime scenario and how will it be resolved.
6. Is there a training plan for the staff? training plan for the teachers? Is there a re-training plan?
An up-training plan?
7. Is there an evaluation of relevant software/hardware?
8. What other emerging technologies will the school benefit from?
A comprehensive cost -benefit evaluation is commonly undertaken by schools to resolve obvious concerns
about total investment cost. at the onset but there is little or no cost-benefit review after the effective
duration of the project. This leads to poor and inconclusive evaluation wether the IT purchase was
successful or not.
WHERE DOES THE MONEY REALLY GO?
While many people think the major contributor to the cost of owning computers is hardware and software,
studies show that management costs and overhead actually account for the majority of the costs.
Reducing the cost of desktop management provides a key solution in lowering the TCO. The Gartner study
below shows that with management tools, the cost of ownership can be reduced by 40%.
By acknowledging that the cost is not really on the hardware/software purchase but on the management
side, then great savings can be made.
Managed computers have 40% lower TCO
Managed
Unmanaged
0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000

Hardware and Software
Operations
Source: Summary TCO Analysis for Windows XP. Table 1 and
Administration
Table 3, “Use Best Practices to Reduce Desktop PC TCO, End User IT Costs
2005-2006 Update”, 8 December 2005, Michael A, Silver,
Federica Troni, Gartner, Inc. Downtime
THE START OF THE PROBLEM LIES ON THE PREPARATION
A typical school IT related requirement would tell the real story.
School A School B
For purposes of anonymity we are striking out the actual names of the schools. (The full document can be
obtained from the internet).
The Request for Quotation ( RFQ) is coming from an entity that represents two schools. It is assumed that
certain requirements are to be common to both schools.
Take note of the specification “Locally assembled Desktop computer” which indicates that there is only
hardware warranty but not assembly warranty. (this means as well that the cost of implementation is not
computed and is probably assumed to be covered by the school.
Also worthwhile to mention is the lack of per unit operating system for the workstations.
Overall the RFQ looks comprehensive, but leaves out the detail on implementation, After sales service and
Warranties.
Once the RFQ has been responded accordingly by Vendors, a thorough inspection of most quotations also
reveals fatal flaws:
1. Training is being offered as a free service by vendors. This ends up becoming a selling point of some
vendors. The extent of training provided is normally limited to entry point to basic know how of the
machines.
2. After sales service is not detailed. What if there is downtime? Or what happens if the machines do not
work? Who is responsible for it? Does standard warranty cover it?
3. Other value added products and services are limited. This would often be added as additional cost by
vendors but would often be shot down by clients. This is normal as the price is the main determinant of
any package.
According to a recent report by Morgan Stanley, between the years 2000 and 2002, U.S. companies spent
about $130 billion on software and hardware that they ultimately didn’t need. And Gartner says these
figures jump to $540 billion on a global scale. That translates into a lot of dollars sitting mostly in IT
department closets.
Two key reasons for this waste are: (1) The solution was not able to do what was expected at the time it was
purchased, and/or (2) Hidden costs that surfaced after the purchase did not leave any budget dollars
available for implementation.
HOW IS TOTAL COST OF OWNERSHIP EVALUATED
To understand the the concept of TCO, we need to provide key data on the following elements defined
earlier to see how much will be spent within a particular IT investment. (We will be removing some line
items for simplicity. Items not part of the review are grayed out)
1. End-user computer Hardware purchase costs

2. Software license purchase costs
3. Hardware and Software Implementation / deployment costs The general concept of
4. Hardware warranties and maintenance costs
5. Operations Infrastructure Costs
Total Cost of Ownership
6. Infrastructure (floor space) costs or TCO is to provide
7. Cost for electricity and cooling. decision makers with a
8. Network hardware and software costs
9. Server hardware and software costs tool to effectively
10. Testing costs evaluate projects that
11. Cost to upgrade or scalability require significant
12. IT Personnel costs
13. Backup and Recovery Process costs amount of CAPEX.
14. Costs associated with failure or outage
15. Diminished performance incidents (i.e. users having to wait)
16. Costs of security breaches (in loss of reputation and recovery costs)
17. Technology training costs of users and IT staff.
18. Insurance costs
19. Replacement costs
20. Migration costs
21. Decommissioning costs
Here is a Typical Breakdown of IT related Costs for Schools. The case study is for a 40 unit Lab for Basic
Education School (Private School).
1.0 Hardware requirement
Hardware Specifications Price Typical Lab

Type Outright Cost Difference Configuration (40
units)
Clone type Equivalent* 35,000.00 0 1,400,000.00
Dell/HP/IBM Equivalent* 50,000 15,000 2,000,000.00
Apple Imac 2.66GHz Intel Core 2 Duo 2GB memory

320GB hard drive 8x double-layer
SuperDrive NVIDIA GeForce 9400M
66,990.00 31,990 2,679,600.00
graphics
* hardware includes web camera, keyboard, mouse optical drive internal microphone
2.1 Software (Operating System Requirement)
Price Typical Lab

Hardware
Additional Software Outright Cost Difference Configuration (40
Type
units)
Clone type OS( Windows Vista

18000 0 720000.00
Business)
Linux 0 0 0
Dell/HP/IBM bundled (add 5000 to

5000 -13000 200000.00
convert to Vista Business)
Linux 0 0 0
Apple Imac bundled 0 -18000 0
* Different Software licensing program may alter pricing comparison.
2.2 Software Applications (Office Suite)
Price Typical Lab

Hardware
Type
units)
Clone type MS Office Suite 10000 0 400000.00
Price Typical Lab

Hardware
Type
units)
Open Office 0 0 0.00
Dell/HP/IBM MS Office Suite 10000 0 400000.00
Apple Imac MS Office Suite 10000 0 400000.00
Iwork09 7000 3000 280000.00

** anti-virus software is not included in this study.
2.3 Software Applications (Productivity Suite)
Price Typical Lab

Hardware
Type
units)
Clone type Adobe Creative Suite* 20000 0 800000.00
Corel Productivity Suite 17000 0 680000.00
Open Source Productivity 0 0

0.00
Suite (Gimp, Inkscape etc.)
Dell/HP/IBM Adobe Creative Suite* 20000 0 800000.00
Corel Productivity Suite 17000 0 680000.00
Open Source Productivity 0 0

0.00
Suite (Gimp, Inkscape etc.)
Apple Imac Bundled** 0 0 0.00
Adobe Creative Suite* 20000 0 800000.00
Corel Productivity Suite 17000 680000.00

** Apple bundles their hardware with intermediate Productivity Suite called iLife09
3.0 Hardware and Software Implementation / Deployment costs
Implementation
Stage Duration Cost Remarks
Description
Ingres* Machines are delivered,

Vendors may or may not
tagged, arranged and 16 man hours 1,700.00
include this service.
powered up.
Ingres** If IT personnel is working

on something else,
16 man hours
timeframe can be further
extended.
Installation, Software is installed

Setup and Vendors may or may not
and configured to work 8 man hours 3,200.00
Configuration* include this service.
with the Hardware.
Installation, Configuration can be

Setup and
tedious if software is
Configuration** 16 man hours
unfamiliar or no previous
training was conducted.
User Software and Hardware

Acceptance Vendors may or may not
is tested to meet Users 16 man hours
Testing* include this service.
standards.
User Standards can be

Acceptance
Testing** lowered down since they
8 man hours can always repair it
internally if errors start to
occur.
Training Software and Hardware Vendors normally spread

Basic Training for this out within the
24 man hours 24,000.00
Technical Staff. proposal and normally
comes out free.
Software and Hardware Cost varies depending if

36,000 or
Intermediate Training 36 man hours its certification training
80,000
for Technical Staff. or up training only
Manpower alloted for this is for two (2) headcounts

* it is assumed that the implementation is covered by vendor.
** It is assumed that the implementatio is to be shouldered by End User
4.0 Hardware warranties and Maintenance costs
Hardware
Standard Warranty Extended Warranty EW Price Remark
Type
Clone type 1 year for parts. depends on Downtime is

Clones do not offer extended
Service not included the number inevitable. Service
warranties. A workable option
unless specified by of service requirement is
is to buy extra service units
vendor or reseller units increased
Dell/HP/IBM 1 year for Parts and Productivity and

3 years parts and Services 10-12% of
Service effectivity is
(customizable Service Level per Item
assumed to be 3
Agreement or SLA’s) Cost
years
Apple Imac 1 year for Parts and Productivity and

3 years parts and Services 10-12% of
Service effectivity is
(customizable Service Level per Item
assumed to be 3
Agreement or SLA’s) Cost
years
Hardware Estimated Extended Actual Extended Remarks

Type Warranty Value Warranty Cost
Clone type* Since the Clones are not covered

per item, the cost to ensure
4,200,000.00 4,200,000.00 effectivity for three years is very
much like buying a service unit
per unit purchased.
Dell/HP/IBM Established Manufacturers offer

extended warranty for their
3,600,000.00 240,000.00 machines very much like having
each one covered with minimal
(10-12%) additional cost.
Apple Imac Established Manufacturers offer

extended warranty for their
4,800,000.00 321,600.00 machines very much like having
each one covered with minimal
(10-12%) additional cost.
* this is why normally clone machines that break down tend to require another set of purchase as parts and servicing
are either scarce or unavailable. It would be better to invest on another set of machines. This actually increases
expenditure on both purchase and upkeep.
5.0 Operations Infrastructure Costs
Electrical Wiring and

Power Outlet
Hardware Tables and
Installation (including Finishing Remarks
Type chairs
APC and Surge
protector)
Clone type The cost should be

72,000.00 10,000 5,000
consistent with both types
Dell/HP/IBM The cost should be

72,000.00 10,000 5,000
Apple Imac the only advantage is that

Macs occupy lesser space
64,000.00 10,000 5,000
than PC counterparts, which
means smaller tables
This does not include other installations such as Projectors, cabinets, and other room fixtures.
6.0 Infrastructure (floor space) costs
Hardware Occupied Space Development Per

Actual Cost Remarks
Type (sq. m) square meter
Clone type The cost should be

50-60 5000 250,000.00
Dell/HP/IBM The cost should be

50-60 5000 250,000.00
Apple Imac the only advantage is that

Macs occupy lesser space
40-50 5000 200,000.00 than PC counterparts, which
means smaller footprint per
unit
The cost of development includes space preparation,cement works and finishing
7.0 Cost for electricity and cooling.
Occupied Actual Monthly Cost for

Hardwa Airconditioning Monthly Cost for
Space Cost per Airconditing, Lights and
re Type Requirement Airconditing
(sq. m) day Electricity
Clone
50-60 6.25 1,250.00 125000.00 138000.00
type
Dell/HP/
50-60 6.25 1,250.00 125000.00 138000.00
IBM
Apple
40-50 5 1,000.00 100000.00 113000.00
Imac
125watts (0.125kW) per square metre of floor area to be cooled in living areas
Light and Electricity is computed at a fixed cost of 3000 (lighting) and 10000 (electricity)
8.0 Network hardware and software costs
For this item, we will assume that Network Hardware and Software has already been set prior to this
project.
9.0 Server hardware and software costs
For this item, we will assume that Server Hardware and Software has already been set prior to this project.
10. IT Personnel
Position Role no. Salary per Annum Total Investment

including benefits (in Cost (in Philippine
Philippine Peso) Peso)
IT Manager Manage IT Team 1 355,000.00 355,000.00
IT Staff Resolve IT Concerns 2 202,000.00 404,000.00
IT Technical Repair/Maintain Equipment 145,000.00

1 145,000.00
Support
Yearly Total Expenses 904,000.00
Comparative Analysis of Total Cost of Ownership (TCO) for a 40 unit Lab for Basic Education
School (Private School) for year 1
Entry Dell/HP/
TCO Determinant Clone Type Apple Remarks
no. IBM
1 End-user computer Total Cost of Hardware is

Hardware purchase cheapest at the Clone level
costs 1,400,000.00 2,000,000.00 2,679,600.00 Apple price is the most
expensive.
2 Software license
purchase costs
2.1 Operating System Clones does not have OS, PC

720,000.00 200,000.00 0.00 workstations need to upgrade.
Apple OS is built in
2.2 Office Suite Apple used Iwork is used instead

400,000.00 400,000.00 280,000.00 of MSOffice
2.3 Productivity Suite Schools opted for Adobe

800,000.00 800,000.00 0.00 Productivity Suite, Apple opts for
their built in Ilife Suite
3 Hardware and
Software
64,900.00 64,900.00 64,900.00
Implementation /
deployment costs
4 Hardware The actual investment to cover

warranties and 0.00 240,000.00 321,600.00 for three years
maintenance costs
5 Operations Space requirement is smaller

Infrastructure Costs 87,000.00 87,000.00 79,000.00 hence smaller expenditure
6 Infrastructure Space requirement is smaller

(floor space) costs 250,000.00 250,000.00 200,000.00 hence smaller expenditure
7 Cost for electricity Space requirement is smaller

and cooling. 1,656,000.00 1,656,000.00 1,356,000.00 hence smaller expenditure
8 Network hardware
N/A N/A N/A
and software costs
9 Server hardware
N/A N/A N/A
and software costs
10 IT Personnel costs 904,000.00 904,000.00 904,000.00 Cost is made consistent
TCO for year 1 6,281,900.00 6,601,900.00 5,885,100.00
Entry Dell/HP/
TCO Determinant Clone Type Apple Remarks
no. IBM
TCO for year 1 6,281,900 6,601,900 5,885,100
Maintenance Cost for Branded

equipment are kept to a
minimum as it was already
TCO for year 2 4,747,000 2,647,000 2,339,000 covered on the intial investment.
Newer software is also coming
out at this year.
CYCLE 1
Maintenance cost increases for

Clones as they do not have
extended warranty packages.
Setups like this often require
TCO for year 3 4,747,000 2,947,000 2,339,000 them to purchase individual
parts to replace the items that
are busted. Downtime is also at
its highest since
3 years is the effective lifecycle

of workstations. Although they
Total Cost of can still function, maintenance
15,775,900 12,195,900 10,563,100
Ownership costs increases as parts are not
anymore covered under
warranty.
Schools often choose to

purchase new sets of equipment
after year 3, and put all previous
equipment to be used for
TCO for year 4 4,747,000 3,847,000 3,839,000 administrative work.
Maintenance Costs continues to
increase as the machines get
older. Newer software is also
available
Most often than not, half of the

EXT
Clones are alreadt

decommisioned or would be
very impractical to maintain.
TCO for year 5 4,747,000 3,847,000 3,839,000 Chopping into parts normally
take place at year 5 . The
problem of storage and disposal
also comes into play.
Clearly at year 5, equipment

replacement is in place.
Total Cost of 25,269,900 19,889,900 18,241,100 Equipment which are still
Ownership working at this stage is reduced
to 1/4
Total Cost of Ownership in a 5 year period.
LIMITATIONS TO THE STUDY:
The analysis done previously have certain controlled factors, as well as items that can be argued to be
incomparable or inconsistent.
The following items can be said about the analysis:
The office suite chosen by the Apple Vendor should have been MS Office as well.
The productivity suite chosen should have been the Adobe Suite for the apple solution.
Maintenance cost for the Clones should not be compared to Branded machine.
Omitted in the study are the following items as well:
Cost for Downtime (which is a pivotal factor in determining effectivity)

Cost for Downtime repairs.
Cost of Data Loss and Retrieval
Cost for Anti-Virus software for the PC side
The productivity suite chosen does not include the following:
Audio edting software
Video Editing Software
Up Training and Re-Training
These items if added to the final analysis of the TCO further

opens up the the real story about IT infrastructure.
The items discussed in the study clearly suggested that

although Hardware and software intially requires a larger
capital expense (CAPEX), it is in the operating expense (OPEX)
and other intangibles that required more amounts in the
overall picture.
CONCLUSIONS:
It can be argued that TCO cannot be measured immediately

until the effective duration is reached. This is true indeed but
it does not diminish the fact that with proper evaluation, IT
projects and implementation can be made more effective and
efficient. The general concept of Total Cost of Ownership or
TCO is to provide decision makers with a tool to effectively
evaluate projects that require significant amount of CAPEX.
The important note here is that we can make intelligent

choices regarding the IT Infrastructures. Knowing that there
are options for us to take, we can decisively pre-assess the
proposal and conduct an exit evaluation of the previous
implementation to learn from them and to continue with
whatever best practices we’
Related Resources:
Outright vs. Lease Nicolas V. Servino Jr. 2008

The Technology Provisioning Program Refresher Primer. Nicolas V. Servino Jr. 2008
Business IT vs. Education IT. Nicolas V. Servino Jr. 2008
http://www.imanet.org/pdf/1927.pdf
http://www.abusinessfranchise.co.uk/lease-buy-business-equipment.html
http://www.adeptscience.co.uk/products/mathsim/mathcad/add-ons/free_ebooks/pers_fin_samp.htm
http://home.manhattan.edu/~fiona.maclachlan//leasing/one.htm
http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073959001
http://www.comsysbi.com/offerings/technology.html
http://www.oracle.com/technology/products/oem/mgmt_solutions/provisioning.html

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Total Cost of Ownership Analysis Sapura Synergy Philippines

Evaluating Education IT Infrastructure

IT Infrastructure in Education is a booming business since

"If someone brings a lot of new

TOTAL COST OF OWNERSHIP

Depending on the IT deployment the

IT IMPLEMENTATION IN PHILIPPINE EDUCATIONAL INSTITUTIONS

A typical Philippines School IT Shopping List would include the following:

1. Workstations for Staff (Midrange Specs) ...studies show that

IT RELATED PROBLEMS OF EDUCATIONAL INSTITUTIONS:

Since Technology has been moving at a faster pace, requirements

The list oftentimes lack depth and detail as to:

WHERE DOES THE MONEY REALLY GO?

Managed computers have 40% lower TCO

0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000

THE START OF THE PROBLEM LIES ON THE PREPARATION

A typical school IT related requirement would tell the real story.

HOW IS TOTAL COST OF OWNERSHIP EVALUATED

1. End-user computer Hardware purchase costs

1.0 Hardware requirement

Hardware Specifications Price Typical Lab

Clone type Equivalent* 35,000.00 0 1,400,000.00

Dell/HP/IBM Equivalent* 50,000 15,000 2,000,000.00

Apple Imac 2.66GHz Intel Core 2 Duo 2GB memory

2.1 Software (Operating System Requirement)

Price Typical Lab

Clone type OS( Windows Vista

Dell/HP/IBM bundled (add 5000 to

Apple Imac bundled 0 -18000 0

* Different Software licensing program may alter pricing comparison.

2.2 Software Applications (Office Suite)

Price Typical Lab

Clone type MS Office Suite 10000 0 400000.00

Price Typical Lab

Open Office 0 0 0.00

Dell/HP/IBM MS Office Suite 10000 0 400000.00

Open Office 0 0 0.00

Apple Imac MS Office Suite 10000 0 400000.00

Open Office 0 0 0.00

Iwork09 7000 3000 280000.00

* Different Software licensing program may alter pricing comparison.

2.3 Software Applications (Productivity Suite)

Price Typical Lab

Clone type Adobe Creative Suite* 20000 0 800000.00

Corel Productivity Suite 17000 0 680000.00

Open Source Productivity 0 0

Dell/HP/IBM Adobe Creative Suite* 20000 0 800000.00

Corel Productivity Suite 17000 0 680000.00

Open Source Productivity 0 0

Apple Imac Bundled** 0 0 0.00

Adobe Creative Suite* 20000 0 800000.00

Corel Productivity Suite 17000 680000.00

* Different Software licensing program may alter pricing comparison.

3.0 Hardware and Software Implementation / Deployment costs

Ingres* Machines are delivered,

Ingres** If IT personnel is working

Installation, Software is installed

Installation, Configuration can be

User Software and Hardware

User Standards can be

Training Software and Hardware Vendors normally spread

Software and Hardware Cost varies depending if

Manpower alloted for this is for two (2) headcounts

4.0 Hardware warranties and Maintenance costs