What is a basic assumption for an architect using the HPE Servers TCO calculator to justify a customer's migration away from a fully depreciated set of hardware?
What is a basic assumption for an architect using the HPE Servers TCO calculator to justify a customer's migration away from a fully depreciated set of hardware?
When customers' older systems are under a support contract, a new system can sometimes pay for itself simply by not renewing the older support contracts. In the context of using an HPE Servers TCO calculator to justify migration, this assumption is based on the idea that the high costs associated with maintaining and supporting old, fully depreciated hardware can be avoided. By transitioning to new infrastructure, the savings from not having to extend expensive support contracts on aging equipment can justify the investment in new systems.
A = Incorrect, “IRR – A discounted flash flow (DCF) method used to compare a company’s investment alternatives. It takes the expected cash outflows and inflows over the project’s life and calaulates he rate that reduces the net present value of those cash flows to Zero.” B=Correct, support extension contract is often more expensive than buying a new system with contracts included C=Incorrect, “A second DCF method used to compare a company’s investment alternatives. With this method, a company’s desired rate of return is applied to expected cash outlows and inflows and returns a dollar amount that represents the investmens’s NPV” D=Incorrect P213 of HPE Master ASE v4