Objectives: Introduction Over View of System Analysis and Design
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- 10.4.5 Financial Factors
- 10.4.5.1 Rental
| 10.4.4 Plug – Compatible Equipment For reasons of cost, analysts frequently consider using equipment fora particular make of computer that is not manufactured by the computer vendor. Such components are called plug-compatible equipment. Some companies specialize in manufacturing systems components, such as printers, disk drives, or memory units that can be connected to a vendor’s system in place of the same equipment manufactured by the vendor. The central processing unit does not care or know that the equipment is not the same make. The benefit of plug – compatible equipment is the lower cost of an item compared with one produced by a major computer vendor. Because firms specializing in specific components can develop manufacturing expertise or are likely to have a smaller investment in research and development – they are duplicating components developed by another firm – they are able to offer the same product at a lower cost. Although there is a large market for plug-compatible equipment because of price differences, the analyst must ensure that the equipment will meet necessary quality levels, that it will perform as well as (or possibly better than) the original equipment, and the computer vendor will not disallow warranties and service agreements on the rest of the system. There is a danger that some service people employed by the vendor will blame malfunctions on the foreign agreements on maintenance responsibilities and methods for resolving possible disputes about malfunction. 10.4.5 Financial Factors The acquisition of and payment fora computer system are usually handled through one of three common methods rental, lease, or purchase. Determining which option is appropriate depends on the characteristics and plans of the organization at the time the acquisition is made. No one option is always better than the other. (Table 10.2 summarizes the features of each method of acquisition) 10.4.5.1 Rental Computer rental is for the short – term use of a system, generally form 1 to 12 months. Each month a payment is made for the use of the equipment. Both the user and supplier have the option of canceling the rental with advance notice, usually 30 or 60 days ahead of the termination date. Because the commitment is short-term, the renter has a great deal of flexibility. The decision to purchase a system can be delayed until financing is adequate, until anew generation of equipment is available, or until such time as the organization wishes, for whatever reason. Flexibility can be particularly important when an organization is experiencing planned rapid growth and will outgrow a specific system in a brief period, when important reorganizations of divisions and departments that will affect computing resources are in progress, or when the enterprise is in a period of dynamic change. Compared with other acquisition methods, rental is the most expensive. Monthly payments are higher, and the organization does not receive any tax or ownership benefits, other than deduction of the monthly rental as a business expense. The equipment received is often used, although the rental agreement should be written in such away that the renter is assured of having a system that runs properly and the will be maintained adequately. The short – notice cancellation provision may not provide enough security for the renter to plan on the continued availability of the system. For this reason, rental is typically a short-term solution that is appropriate perhaps while awaiting the official announcement and delivery of anew system. Many firms refuse to tie up capital or equipment for short-term rentals. The analyst must ensure that rental systems are even available before making such a decision, since not all suppliers offer short – term rentals. Download 0.94 Mb. Share with your friends:
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