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日期:2019-03-10 09:01

2018/19 – Business & Financial Computing

CO1109/CO1909

Assignment 2

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I. Objective

Inspired by a real-life case, the students are introduced to a kind of a non-technical

task that IT professionals often perform in practice. The assignment develops the

students’ skills in problem solving, analysis and reporting.

II. Important Dates:

1. Starting date Thursday 28

th February 2019

2. Submission Deadline 15th March 2019, 3 pm

III. Policy on Plagiarism:

Department of Computer Science Rules The Department operates the principle

that both the plagiarised and the plagiariser are equally guilty. Students are

therefore responsible for ensuring that their work is not plagiarised, and note that

this includes ensuring that any work stored on the departmental and/or university

computer systems is suitably protected.

Note that the Department reserves the right to exact any penalties which are in

accordance with the University's code of practice on plagiarism.

The Department has its own set of regulations concerning plagiarism which can be

found in the Study Guide of any module. The Department takes this issue very

seriously, and students should note that on occasions in the past some very serious

penalties have indeed been applied, including reduction of module mark to zero,

and overall reduction of degree class.

Additionally: Plagiarizing any part of the assignment will result in getting

ZERO in the whole assignment.

IV. Assignment #2

Imagine that the company you work for is about to buy a software product for a new

application. After researching the market, it has been decided that there are 2

alternatives: a commercial product (Product A) and a cloud-based product (Product

B). Your manager has asked you to perform a comparative study of the 5-year costs of

the 2 products, based on the variation of number of users that will have access to the

application and prepare a power-point presentation that summarizes your findings and

conclusions.

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2

After contacting the products’ vendors, talking to your colleagues and researching the

market you have identified the following facts:

Product A

Product A consists of 4 components (subproducts) that are all required for the new

application, however, they are licensed independently:

Component A1 that is licensed on a per user basis, costing £80 per User that

will have access to the application.

Component A2 that is licensed on a per user basis, costing £120 per User that

will have access to the application.

Component A3 that is licensed based on the number of CPUs that are installed

on the application server that the product will run, costing £15000 per installed

CPU.

Component A4 that is licensed based on the number of CPUs that are installed

on the application server that the product will run, costing £10000 per installed

CPU.

It is estimated that in order to be able to perform adequately in the production

environment, Product A requires 2 CPUs for up to 300 Users, 4 CPUs for 301 to 600

Users and 8 CPUs for 601 to 1000 Users.

Additionally, the new application will have a disaster recovery site for which the cost

for product A is calculated as 40% of the price of the license for the production site

when, however, the production site license is calculated with no users accessing the

product. Note that, given its purpose, the disaster site still needs to have the

appropriate processing power in order to be able to accommodate the same number of

users as the production site.

Moreover, starting from the second year, for Product A, the bank will have to pay the

product vendor an annual 20% maintenance fee over the final product license price

(where the final price includes both the production and the disaster recovery sites).

The implementation/customizations fee that the vendor will apply for Product A is

fixed and equal to £80 000. Moreover, starting from the second year, the vendor will

apply an annual 10% maintenance fee over the implementation/customizations fee.

Product B

The cloud-based product (Product B) is subscription-based, starts from the first

year and costs £15 000 per year, per CPU installed on the application server that the

product will run.

It is also estimated that in order to be able to perform adequately in the production

environment, Product B requires 4 CPUs for up to 400 Users, 6 CPUs for 401 to 600

Users and 8 CPUs for 601 to 1000 Users. There is no cost for the disaster site for

Product B.

The implementation, once-off, fee that the vendor will apply for Product A is fixed

and equal to £60000. There is no annual maintenance fee over the implementation fee

for Product B.

3

Hardware Costs

The acquisition cost of each CPU that is installed on the application server in the

production and disaster sites is £5000. The CPU cost has also a 12% annual

maintenance fee which starts from the second year.

Based on the facts above and in order to prepare the presentation to your manager you

should perform the following tasks:

Devise the mathematical formulas that calculate the 5-year costs for each of the

products above (the 5-year costs should include elements such as the production

site license costs, the disaster site license costs and the maintenance or

subscription costs)

Based on the previous formulas and using MS Excel or by developing your own

application, implement the formulas you devised and also build the following

diagrams/graphs:

- The first diagram will show (in the same diagram) the 5-year costs of each of

the products as a variation of the number of users, in other words the vertical

axis is the 5-year cost (in £) , whereas the horizontal axis is the number of

users ranging from 50 to 1000, in intervals of 50 users.

- The second diagram will show the 5-year cost difference of the two products

as a variation of the number of users, in other words the vertical axis is the 5

year cost difference (in £) (Product A 5-year cost minus Product B 5-year

cost), whereas the horizontal axis is the number of users ranging from 50 to

1000 in intervals of 50 users).

-assuming that the usage of Product A will provide the bank an annual profit

of £85 000, provide a graph in which the vertical axis is the Payback Period

for the investment in Product A, whereas the horizontal axis is the number of

users ranging from 50 to 1000, in intervals of 50 users. Note: in calculating the

PP you should consider only the initial CAPEX investment for Product A, not

the 5-Year TCO.

o Prepare a concise power point presentation to your manager (in a presentation

form suitable for your manager). The slides of the presentation should include at

least the following:

o the facts you have identified (already described above),

o the graphs you have prepared (as defined above)

o your own conclusions from this analysis you performed i.e. what does your

analysis show that your manager needs to be aware of e.g., which of the 2

products is more cost-effective and in which cases? If you wish, you may

include other calculations in order to reach conclusions on the comparison

(e.g. the 7-year or the 10-year costs of each product)

o A list and brief explanations of additional cost factors (at least 4 of them)

that you believe the previous analysis does not take into account, but should

nevertheless be considered in order to be able to calculate with more

precision the final total 5 year-cost of the application. For example, the cost

of telecommunication lines is an example of such factor.

4

Notes:

1. If you use MS Excel to implement your formulas you may have to use the Excel

“IF” function for which you can find several resources online (depending on

which MS Excel version you will use). You would also need to create charts in

Excel, a task for which you can also find several resources online.

2. If you prefer not to use MS Excel, you may choose any widely applicable

programming language (e.g. Java, C#) and user interface technology (e.g.

browser-based or other) to implement the application (as long as it runs in a

Windows XP or later OS and does not require any special additional software (or

even hardware)). Please ask if in doubt on what programing language to use.

3. The assignment will be marked according to the following criteria:

Criteria Weight

Formulas Completeness and Correctness 30%

Formulas and Graphs Implementation Quality, Completeness

and Correctness (either in MS Excel or other)

35%

Quality of the Power Point report contents and presentation

elements

35%

V. Submission Notes:

Late submissions of the assignment report and project files (within 24 hours) will

automatically lose 50% of the mark.

Late submissions (more than 24 hours) are not accepted. In case of emergency,

illness, etc., late work may be accepted without penalty, provided that enough

supporting documents are submitted.

Submissions should be made electronically containing the following deliverables:

1. The .xls file with the formulas implementation or the source code you

have developed in which case the “byte” code and the necessary scripts

and a file with instructions on how to set up and “run” it in a Windows

XP or later OS should also be included.

2. The report (in .ppt format) that you would have delivered to your

manager.

All the above should be bundled in a .zip file that should be named

Assignment2.zip


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