[Opensource] Fwd: TCO (total cost of ownership)

[Roland Gesthuizen]

Some fascinating calculations below .. of course machines like the eeePC and
Acer Aspire One are in a different league but it shows you how much things
have changed. You can see from this why they are blanketing the pacific
island communities with these XO computers running Linux desktops. They
might not entirely suit the senior secondary enviroment of our mainland
schools but they snap into place like a dream with the primary schools on
our neighbouring islands.

When I get the chance, I will post some screenshots of how we have been able
to get a set of netbooks running on our school network with a Linux desktop
(Ubuntu). Easy peasy .. (and the student technicians can take full credit!)
.. I must revisit the sugar interface with my students and see what we can
do.

Regards Roland


---------- Forwarded message ----------
From: Bill Kerr <billkerr at gmail.com>
Date: 2008/10/2
Subject: TCO (total cost of ownership)

Tony Anderson published his calculations for total cost of ownership of an
XO compared with a computer lab in a long and acrimonious thread on olpc
news
http://www.olpcnews.com/sales_talk/price/5_year_tco_computers_in_schools.html

his results:
OLPC 4.5 cents per hour
computer lab $2 per computer access hour

if he's correct then that's 40 times more value for money roughly speaking
:-)

Here are his calculations:

Surprise! TCO for XOs in schools is $437.50 (4.5 cents per hour)

I have attempted to recalculate the TCO based on a more realistic
description of the OLPC model, but using the numbers in the report.

The TCO model in the report is based on teaching ICT in a public secondary
school. The purpose of this training is to prepare university-bound students
to enter a course of study leading to a position in the computer field.
Assume that the school enrollment is 160 students. The study assumes 3.5
hours lab time per day, 5 days per week, for 39 weeks per year (10920
available hours per year). Shared among 160 students for an average of 68.25
hours per year per student or 1.75 computer access hours per week.

The OLPC model is based on each child having an XO throughout the class day
and at home on evenings, weekends and holidays. It is also focused on
primary school education. Assuming a school of 160 students, at least 160
XOs will be needed. Assume a steady-state situation in which each child
entering the school in the second grade gets an XO. Each child keeps his XO
throughout the primary years (grades 2 thru 5 as assumed in the study). The
school purchases an additional 5 XOs per class to provide for loss, damage,
repair, incoming transfers, and the teacher. In addition the OLPC model
assumes a dedicated computer (XS) per school which provides internet access,
provides backup for the XOs, caches instructional materials, and supports a
CMS (Moodle). Each child has a computer which could be used each day for six
hours in class and two hours at home (plus ten hours on weekends). This is
approximately 1800 hours per year - let's assume 1000 hours.

First, look at the direct computer cost, excluding initial setup, training,
connectivity to the internet, electricity, and Tier 1 (software) support.

Case 1: Public Secondary School (grades 9-12) sets up a computer lab with 16
desktops (one is also a server) to teach ICT. The total cost is $8000 with a
per seat cost of $125. This is a approximately $0.40 per hour for computer
access ($125/312).

Case 2: Public Primary School (2-5) provides each child and four teachers
with an XO. The initial purchase for this school is 160 + 4 (teachers) + 4
(reserve) for a rounded-up total of 170 at $200 each ($34000). The annual
buy is 45 laptops at $200 per student ($9000). A dedicated server per school
costs $500 (headless mainstream desktop). This is a total cost of $34500
($216 per student). If we assume utilization of 1000 hours per year, the
cost is($216/4000) or 5 cents per hour. Note: if leaving students keep their
XO, the cost in the first four years is $34000 + $27000 (3 * $9000).

Other costs:

Case 1 the computer lab pays $33886 total for initial setup ($5351),
training ($10620), software support ($10920), hardware support ($2432),
electricity and internet connectivity ($5351), and damage and theft ($2640).
This increases the computer lab cost to $2500 (41886/16) per seat and
approximately $2 per computer access hour ($41886/16/4/312).

In case 2, the costs of Tier 2 and 3 (hardware maintenance) and the costs of
damage and repair are handled by purchasing extra XOs. In the OLPC case the
extra cost is $28314 (excluding $5072). The OLPC total cost is $70000
($41500 + $28316). This is $437.50 per student or 4.5 cents per hour.

Posted by: Tony Anderson on September 29, 2008




-- 
Roland Gesthuizen - ICT Coordinator - Westall Secondary College
http://www.westallsc.vic.edu.au

"Never doubt that a small group of thoughtful, committed citizens can change
the world; indeed it is the only thing that ever has." --Margaret Mead



-- 
Roland Gesthuizen - ICT Coordinator - Westall Secondary College
http://www.westallsc.vic.edu.au

"Never doubt that a small group of thoughtful, committed citizens can change
the world; indeed it is the only thing that ever has." --Margaret Mead
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