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What is more economically viable

By the_hunteroz ·
I need some help convincing people in HQ that it is more economically viable to spend $55,000AUD on 70 upgrade kits which comprise of:
ECS RC410L Motherboard
Intel Pentium D 820 2.8Ghz processor
512mb of memory
80gb SATA-2 HDD
16X DL DVD-RW
New Power supply 400Watt
New MS keyboard & mouse combo
new 17" LCD screen
This would be then assembled into pre-existing out of specification machines to bring them up to government specifications.

The government want me to go through the Tender list (TWO vendors) who charge astronomical amounts, these are:
CDM Computers: cheapest price $1036.85 including tax: this comprises of:
2.8GHz Pentium 4 Celeron processor
800MHz FSB
Intel 945 chipset
17? LCD monitor
512MB DDR400 RAM
80GB 7200RPM SATA HDD
DVD combo drive
4 year warranty
(less specifications than what i have)
IBM Computers: cheapest price: $1,173.66 including tax: this comprises of the same specifications as the CDM model

now my parts upgrade costs a total of $784.00 including tax, saving a whopping: $252.85 each kit compared to buying a new pc and they are telling us to throw out the old ones. because allegedly it isn't economically viable to upgrade out of date pc's (since when???) if its cheaper it sounds economical to me! I have been advised that "Industry Research" shows and supports complete replacement of pc's

your comments would be greatly appreciated,

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Well you need to factor in

by Tony Hopkinson In reply to What is more economically ...

the resource to physically do the upgrade.
If you do go down the upgrade route, get some sticky labels with upgraded on them, they'll save you alot of arsing about.

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From my own experience

by jdmercha In reply to What is more economically ...

It is cheaper to buy a new computer than to pay me to upgrade one.

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I agree

In most cases its cheaper or there isn't much of difference once you factor in the time it would take to upgrade. In the corporate environment i'm in and for the quantity needed, it would just to long to upgrade, i can spend that time doing work.

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Case configs and disposal

by DMambo In reply to What is more economically ...

Would there be any issues with the case configurations of the old PC's and the new MB's? You'd hate to be standing around with 10 or 15 extra part sets that won't fit anywhere. Also, the 4-year warranty might be a management enticement.

Also, what about disposal costs? can the old machines be sold, or will they go straight to the scrap heap. If you are able to go with the upgrades, it might be easier to recycle the components since they're already pulled.

You might be fighting an uphill battle because even if the performance is good in the refurbished machines, users won't have that warm and fuzzy feeling of the shiny new case on the desk. They'll see and old case and feel like their getting some old recycled piece of crap. Perception can have amazing powers. I once sped up a users network connection by giving him a red ethernet cable.

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Warranty...

by wesley.hatfield In reply to What is more economically ...

Don't forget to factor Warranty into the equation. For management types this will be a deciding factor. 4 years for the off-the-shelf systems versus 3 mnths - 1 year manufacturer warranty on components, not to mention multiple companies to deal with (and finger point at the other). Having a single place to call to B&^%ch can make Managers happy in the pants.

Besides, you don't want the headache of upgrading dozens of systems yourself, trust me on this one. Murphey's law dictates at least one batch of components will be full of duds and replacing them will be a huge pita. Been there-burnt the t-shirt.

Good luck however it happens though!

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Yup and warranty (for all practical purposes) will not exist

by drowningnotwaving In reply to Warranty...

Your original vendor will refuse ongoing support of the upgraded boxes. Or charge you an outrageous price (eg $200 per unit per year) even if they agreed to take it on.

Your third party supplier will say "yes" to support.

But the reality, when you call them up, is that you will go around in the "well who did the upgrade?" and "was it really done to our specifications?" round-a-bout forever.

Not all govt departments and large corporations are completely stupid. There are just so many other factors in the cost-equation that you haven't put on the sheet for a proper comparison. There are reasons why a new purchase is normally financially more viable than the bits and peices upgrade.

Hands up who remembers the AMD 6-Pack Plus? Now that was an upgrade.

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if your employer is govt or partially-govt then

by drowningnotwaving In reply to What is more economically ...

. . . sorry but you've missed the point.

Warranty will kill the deal but so will other things.

Economically there are stacks of reasons for not upgrading including all the things that people have discussed.

Not to mention that one reason for maintaining a preferred supplier list is that the govt avoids having hundreds of people (that is, just like you) in hundreds of departments looking up prices and availability and terms and conditions and warranty and cost of delivery and every other thing that goes with a purchase.

Not to mention the work that you will have to do to set this person / company up as a registered supplier to the government.

The price that the govt pays for this convenience is that, on certain deals, the invoice will either seemingly or indeed in reality be more expensive.

But overall I can assure you that it is cheaper in the long term to pay a premium for the convenience/efficiency of having limited contracted suppliers.

Not to mention that your supplier doesn't get paid for 90 days or more. Spoken to them about that? Who takes their phone calls about that?


Another consideration is the financing of the purchase - the finance providers to government will have rules about the kinds of machines they will finance. Upgrading a mainframe fits the bill. Upgrading an older PC often (but not always) doesn't fit the financing. And especially using a third-party supplier where it will probably kill or increase support on the original equipment plus have dubious warranty coverage on the upgrade stuff.

So even if you could make the purchase individually, you'd probably not actually save anything overall.

Plus, do you make a bonus by not spending the money? Do you get to spend it on something else? Highly and extremely unlikely in a govt environment.

Here is the recommendation:

Get the new boxes. Get yourself a trip to the lucky vendor's Xmas cruise on the Swan River. Live it up and play the screw-everything-I-can-out-of-the-vendor game. It's huge fun. Vendors want to pander to your every whim. Freemantle at night and a a vendor sales rep with an Amex. It works.

Who is CDM? Buy IBM. Better expense budget. More freebies all the time.

Whereas lots of people have fallen by the wayside, playing the I-can-make-govt-more-efficient game. You have to fight the entire beaurocracy for that.

They say the first deal is the hardest. They get easier after that. Heck, by the time you're 50 you'll be sitting back drinking Pina Coladas on Patpong beach in Phuket, all expenses paid from the vendor for their annual technical meeting. It's not your definition of success but it certainly dulls the pain.

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Government

by the_hunteroz In reply to if your employer is govt ...

I work for the government, as for warranty, some of them have a 3 year warranty on, ie. processors, hard drives, lcd screens, and a couple of other items.

CDM is one of the largest business direct server, and desktop distributors in Perth.

http://www.cdmaust.com.au/

I agree, that its probably not worth my while but when you consider that i have over 100 out of specification machines on my network, and it will be another four years for the next lot of funding, i think you can appreciate my point of view. I already built 52 new pc's this year, using Commonwealth funding, but since then HQ has said can't do that anymore

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