Reference guide

HPE Synergy TCO Calculator: Downtime cost overview and methodology

Abstract

This document is the one in a series that identifies the rationale, methodology, formulas, and supporting third-party sources used in the HPE Synergy Business Value Calculator available on hpe.com (TCO Calculator) assessment of the key cost elements within an analysis. If not done so already, please first review the paper HPE Synergy TCO Calculator overview prior to reading this reference guide. This paper discusses the costs due to server downtime when migrating from existing legacy servers to a new HPE Synergy Composable Infrastructure. The TCO Calculator downtime values are estimates based on the general premise that the older the servers are, the more they are subject to downtime. And as a result, migrating from older legacy servers to new HPE Synergy compute modules can significantly reduce costs associated with outages due to server downtime.

Summary

The HPE Synergy Business Value Calculator provides an initial preliminary economic assessment or total cost of ownership (TCO) analysis for a technology consolidation refresh (brownfield analysis) when migrating from legacy HPE and Cisco blade servers to a new HPE Synergy Composable Infrastructure. There are many financial factors to consider when making a decision to replace existing IT systems. As a result, the TCO Calculator provides a very comprehensive analysis inclusive of the cost elements listed in Table 1. The server downtime cost element being the topic of this paper.
At up to approximately 40%, server downtime is one of the largest components of the TCO Calculator brownfield financial analysis. Therefore, it is imperative a user understand the methodology and formulas behind the downtime figures. The cost impact associated with server downtime is often very significant, but often a direct cause-and-effect is difficult to identify. As such, the TCO Calculator considers server downtime as an indirect cost or a cost that is difficult or otherwise not directly assigned to a specific entity or cost center. Downtime can occur in many forms including lost employee productivity, impact to company revenue, damaged reputation and customer satisfaction, compliance failure, and remedial impact (e.g., employee overtime costs to recover lost business) to name a few.