Reference no: EM133071979
In FY 22, the organization would like to move its current servers to the cloud. These servers are currently located in our Denver offices. The following factors apply
-The server room occupies an entire floor and requires specialized air-conditioning to regulate temperature on the floor, approx. annual cost of 10k
-We have 10 servers, each server costs approx. 10K and has a 3 yr life
-The building where the servers are located is aging and has dated infrastructure which is subject to constant failures resulting in outages for our network. A typical outage can last for 3 hrs and and can result in billing losses of approx. 6k per outage. In FY 21 we had approx. 20 outages and in FY 20 we had 17.
-We have received the following quote for hosting from 3rd party providers, initial implementation cost of 200K and an annual hosting cost of 50K
-We also currently outsource our server support services to a 3rd party vendor for 5K per month.
Using the above information and considering time value of money, and terminal value, please tell us
-How would you evaluate this decision for its financial viability?
-What additional considerations would you take into account besides what is mentioned above to evaluate this decision?