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The following article was published in our article directory on March 21, 2015.
Learn more about SpinDistribute Article Distribution System.

THE FINANCIAL BENEFITS OF MANAGED SERVICES

Article Category: Computers and Technology

Author Name: George Hefter

The Case for Zynstra � a Total Cost of Ownership Comparison

In order to provide an adequate basis for comparison between the Zynstra Hybrid Cloud IT Solution and a comparable stand-alone server with equivalent features and ongoing services, we have prepared the following Total Cost of Ownership (TCO) comparison. This comparison is based on a real-world proposal prepared for one of our customers.

The Zynstra Hybrid IT Solution

Although many models and options are available, a standard Zynstra Model 1420 hits a sweet spot for many SMBs. Built on a locally installed Hewlett Packard rack-mount or tower Proliant server running Windows Server 2012 R2, it provides a domain controller with Active Directory, network services, and licensing to support 15 � 30 active users. Included are end-user file storage, a print server, firewall, local backup storage with offsite backup for disaster recovery, and 2 virtual machines for client applications. If you are using Office 365, single sign-on with your active directory credentials is supported, along with reverse backup of your Office 365 data onto the local server.

The whole thing is curated and maintained always current by Zynstra, and can be managed both from the cloud and from a custom-designed management interface on the server. Bundled with ongoing support for your client applications and the rest of your IT infrastructure from your traditional MSP, the whole package will run about $1100 a month plus tax on a 3 year contract. That monthly cost falls to about $990 a month plus tax if you opt for a 5 year contract. That's right, a simple monthly payment...no huge up-front capital expense.

The Standard Server Solution

By comparison, a similarly equipped server bought on an up-front capital expense (CAPEX) basis running Windows Server 2012 R2 Standard, but without the server curation and "keep current" support, custom integration and virtualization, cloud management and custom local management capabilities included with the Zynstra product will run approximately $15,030.00

Adding in the on-going 24/7 remote monitoring, remediation, and patching; help desk support; and unlimited remote or on-site support as required to monitor, maintain, and "keep current" the server as well as the client applications and the rest of the infrastructure brings the ongoing support cost to approximately $1313/month, or a total cost over a three year period of $47,268.00

TCO Comparison

The Total Cost of Ownership (TCO) over three years for a stand-alone (CAPEX) server including services and support comparable to that provided with the Zynstra solution is therefore:
Three Year TCO for a server on a CAPEX plus monthly support basis $62,298.00

By comparison, the Total Cost of Ownership (TCO) over three years for the Zynstra solution is:
Three Year TCO for the Zynstra (OPEX) Solution ($1100/mo x 36) $39,600.00

NOTE: Costs common to both alternatives such as installation and migration cost are not included in this comparison.

The NET Savings with the Zynstra Hybrid Cloud IT Solution over three years is $22,698.00

That's a 36% saving with the Zynstra Solution
and there's no huge capital expense!

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