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In FY 22, the organization would like to move its current servers to the cloud. These servers are currently located in our Denver offices. The

In FY 22, the organization would like to move its current servers to the cloud. These servers are currently located in our Denver offices. The following factors apply

  1. The server room occupies an entire floor and requires specialized air-conditioning to regulate temperature on the floor, approx. annual cost of 10k
  2. We have 10 servers, each server costs approx. 10K and has a 3 yr life
  3. The building where the servers are located is aging and has dated infrastructure which is subject to constant failures resulting in outages for our network. A typical outage can last for 3 hrs and and can result in billing losses of approx. 6k per outage. In FY 21 we had approx. 20 outages and in FY 20 we had 17.
  4. We have received the following quote for hosting from 3rd party providers, initial implementation cost of 200K and an annual hosting cost of 50K
  5. We also currently outsource our server support services to a 3rd party vendor for 5K per month.

Using the above information and considering time value of money, please tell us

  1. How would you evaluate this decision for its financial viability?
  2. What additional considerations would you take into account besides what is mentioned above to evaluate this decision?

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