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Total Cost of Ownership Methodology

Our Total Cost of Ownership calculator provides a comparison of Zynstra’s Hybrid IT as a Service against comparable traditional IT. The methodology explains in full detail how the calculations are created.

We believe Zynstra offers end users enterprise class IT at a price that beats the alternative solutions on the market today.

This total cost of ownership (TCO) comparison provides the numbers to back up our bold claim.

It considers the cost of a Zynstra solution and a comparable ‘traditional IT’ solution delivered using off-the-shelf products, perpetual software license, SaaS subscriptions and typical IT staff or consultancy day-rates.

Scope of the TCO

Over a three year period the total cost of ownership is calculated for a Zynstra solution and an alternative solution providing a comparable set of features, functionality and resources.

The proposed solutions cover a business’s principal server, domain controller, internet gateway, local file share, hypervisor, virtual machine (VM) compute capacity, network security, user credential management, optional off-site backup with 1 year snapshot retention, and server management/monitoring tools.

In addition, IT service costs are included for installation and migration of user credentials, user files, and business applications to the new system.

It should be noted that Zynstra service includes extensive, frequent, system monitoring for health, security and performance, and regular patching and software updates. This Keep Current service is significantly more sophisticated than most organization’s in-house procedures, and exceeds the service specified by the minimal hours allocated to these activities in the alternative solution.

For the purpose of clarity, the following are completely excluded from the analysis:

  • End-user devices
  • Network access points, routers or switches
  • Infrastructure such as power, UPS, rack, and cabling
  • Other 3rd-party software licenses, such as user productivity applications

Unpredictable Costs

The cost estimates for the alternative solution necessarily excludes unknown or unpredictable costs, such as:

  • We have assumed no cost is incurred in the event of access to the off-site back-up data being required or a disaster recovery taking place – In fact, service providers may charge several thousand Pounds for a DR recovery service.
  • We have assumed no additional consultancy hours will be required for unexpected issues resulting from hardware or software faults.
  • We have assumed no unexpected hardware costs for replacing faulty or incompatible equipment.
  • We have assumed no staff hiring or training costs, in the event that existing IT staff require training on the solution, or staff leave, requiring replacement.

While such costs are unpredictable, our experience suggests that should something go wrong with a traditional IT solution the cost and effort to resolve the issue contributes a significant percentage of the total cost of ownership.

Note that these exclusions are covered or mitigated by Zynstra’s service at no extra cost.

As part of the service, Zynstra and their MSP partners include fully managed server IT, monitoring, patching, updates, operating system, cloud backup/DR service, cloud storage costs, hardware fix and server replacement costs, and no future hardware refresh costs.

Costs for unexpected events, such as from problems caused by software patches, or the need to execute a disaster recovery restoration process, are included in the service, making Zynstra’s pricing predictable.

Pricing and Commercial Terms        

The cost of the Zynstra solution includes 36 months of our service subscription, assuming a 3 year contract and monthly billing. We have estimated the monthly price for Zynstra’s service, based on typical retail prices as of June 2015. Your actual price may vary depending on Channel activity.

The alternative solution comprises a mix of one-off, monthly and maintenance costs based on separate hardware, software, appliances and cloud services, and support contracts.

The alternative solutions prices are based on advertised retail prices as of June 2015.

IT Consultant / Staff Costs

Where additional work is required to prepare or maintain either solution, this has been allocated a cost of 35GBP per hour.

Exchange Rates        

The TC analysis is based on GBP base prices, with USD and EURO costs calculated based on current exchange rates.

Local price lists may vary, particularly during large exchange rate fluctuations.

Further Questions

If you would like to find out more about how Zynstra’s cloud managed server appliances compare to traditional IT either Contact Us or call +44 (0) 333 355 7055.

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