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ChaPter 3 • ProjeCt management 57

Ascertaining the current hardware available will result in a sounder decision-making pro-
cess when hardware decisions are finally made because much of the guesswork about what exists
will have been eliminated. Through your earlier interviews with users, questionnaires surveying
them, and research of archival data, you will already know the number of people available for
data processing as well as their skills and capabilities. Use this information to project how well
the staffing needs for new hardware can be met.

Evaluating Computer Hardware for Purchase
Evaluating new computer hardware is the shared responsibility of management, users, and sys-
tems analysts. Although vendors will be supplying details about their particular offerings, ana-
lysts need to oversee the evaluation process personally because they will have the best interests
of the business at heart. In addition, systems analysts may have to educate users and management
about the general advantages and disadvantages of hardware before they can capably evaluate it.
Based on the current inventory of computer equipment and adequate estimates of current
and forecasted workloads, the next step in the process is to consider the kinds of equipment
available that appear to meet projected needs. Information from vendors on possible systems
and system configurations becomes more pertinent at this stage and should be reviewed with
management and users.
In addition, workloads can be simulated and run on different systems, including those
already used in the organization. This process is referred to as benchmarking.
Criteria that the systems analysts and users should use to evaluate performance of different
systems hardware include the following:
1. The time required for average transactions (including how long it takes to input data and
how long it takes to receive output)
2. The total volume capacity of the system (how much can be processed at the same time
before a problem arises)
3. The idle time of the CPU or network
4. The size of the memory provided
Some criteria will be shown in formal demonstrations; some cannot be simulated and must
be gleaned from manufacturers’ or service providers’ specifications. It is important to be clear
about the required and desired functions before getting too wrapped up in vendors’ claims during
demonstrations.
Once functional requirements are known and the products currently available are compre-
hended and compared with what already exists in the organization, the systems analysts in con-
junction with users and management can make decisions about whether obtaining new hardware
is necessary.

ADVANTAGES OF BUYING COMPUTER HARDWARE. If the organization purchases its own
computers, it will have full control regarding the type of hardware and software. The company
will decide when to purchase it and when to replace it. Often it is cheaper in the long run to
buy computer equipment outright, but only if the organization buys the appropriate computer
equipment. Buying computers often has tax advantages in the United States because of the
depreciation rules.

DISADVANTAGES OF BUYING COMPUTER HARDWARE. Purchasing computers presents a
problem because the initial cost of buying the equipment is often very high. Phasing in computer
equipment over time doesn’t always work because of compatibility problems that exist with
different models and legacy devices, but buying everything at once means tying up capital or
borrowing money. The risk of equipment obsolescence is a serious concern, and getting stuck
with equipment that is not useful because someone made the wrong decision is a very large risk.
Finally, the organization needs to remember that the full responsibility for the operation and
maintenance stays with the company that buys the equipment. This can be a big disadvantage
because it ties up people and money.

Renting Time and Space in the Cloud
Instead of purchasing their own equipment, companies can use cloud services. Some of the
services available are Web hosting, email hosting, application hosting, backup, storage and