5.2. SR 10-05-2009cti~n egueste
The IT department is seeking authorization to acquire virtualization hardware and software
ack r~undl Nscu~s~®n
This project was first presented to Council back in May. Since then we pursued the financing o£ the
project via a public safety grant. we were unsuccessful in securing any grant funding. The compelling
reasons for this pro ject are;
® Simplified disaster recovery. once deployed we will have areal-time duplication of all production
data in our EUC equipment closet. Recovery time can be minutes with no ions of data.
® we are currently running nine of our fifteen servers with expired warranties. This project will
upgrade these servers and provide the infrastructure necessary to replace our other servers
without the need for purchasing hardware.
~ Power Usage: The power and cooling cost for an individual server is estimated to be over five
hundred dollars per year. we anticipate eliminating ten of our fifteen sea.•vers for an annual cost
savings of five thousand dollars.
~irtualization is now a proven and mainstream technology that has been deployed initially in larger
organizations and now ion organizations of all sizes.
After a review of lease options and expected useful life of the equipment, we recommend the purchase
option, or if we went with a lease, a lease to own option. The major factor was that we anticipate that
so:m.e or maybe all of the equipment to be serviceable beyond the fzve years of a lease agreement. Also,
when reviewing lease options, the refresh/update lease was more expensive over the five years.
Most of the items are available on the State contract through works Computing ~dealer• of HP~. IT
requested quotes for the remaining storage portions with the lowest quote also coming from works
Computing.
Nnancmal rn act
The cost of the virtualization hardware and software is X54,433.23. In Zo09, the IT Department budgeted
$30,000 in Capital outlay for lease payments for this expenditure. This leaves X54,433.23 to be financed
or funded internally. Since the IT department is recommending that a lease would be purchase to own,
we can fund the remaining portion of the project internally out of the capital outlay rese~•ve fund to avoid
X7,126.40 ~~ finance charges from a lease agreement at 4.7 percent. The rT department as u gete
$15,000 ~n 2010 as lease payment which would be reduced to X10,900 in order to repay the capital outlay
Reserve Fund over five years. This is the same way we purchased the LETG software for the police
department in 2007, but that was over three years.
tt.chnnens
None
Ctl®n Motion by Second by Vote
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