MSJC Computer Lease

Prepared by: S GuarinoFebruary 2008

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System and Inventory

The District supports about 720 desktop and laptop computers.

Basic standards must be met to accommodate District needs and maintain levels of usability and compatibility.

This achieves efficiency in training the user community as well as the technicians that maintain the systems.

System and Inventory

The District supports about 720 desktop and laptop computers divided into four quadrants.

At the start of our lease:

Quad Number Age Power

A 219 1994-2002 128MB– 256MB

B 234 2002-2004 256 MB -512 MB

C 158 2004-2006 512MB – 1GB

D 109 2006 + 1GB – 2GB

System and Inventory

Each year, the Information, Communication and Technology Committee (ICTC) sets minimum standards based on standard district software. MSJC has enjoyed a long period of ‘software stability’

SoftwareMicrosoft XP Office 2003 Series - Word 2003 - Outlook - Excel 2003 - Powerpoint

Hardware

Pentium IV256 will run Minimum standard is 1GB

System and Inventory

After period of stability, MSJC is faced with major upgrade to standard software and

hardware:

SoftwareMicrosoft VistaOffice 2007 Series - Word 2007 - Outlook 2007 - Excel 2007 - Powerpoint

Hardware

Pentium IV256 will run Minimum standard is 1GB

Computer Lease

April 12, 2007 BOT approved Lease-refresh, noting benefits including:

Provide desktop and laptop equipment on 4-year refresh cycle.

Normalizes cash outlay Allows MSJC to realize economies of scale Avoids obsolescence Prepares inventory for Vista / Office 2007 Optimizes training and support Includes computer disposal program

Purchases Under Lease

No A or B machines will run Vista - Need 219 + 234 = 453 machines

Quad Number Age Power

A 219 1994-2002 128MB– 256MB

B 234 2002-2004 256 MB -512 MB

C 158 2004-2006 512MB – 1GB

D 109 2006 + 1GB – 2GB

Purchases Under Lease

Need 453 in 2006-2007Purchased -216 (112 for Admin/Staff & 104 Faculty)________________________Still In Need 237

Cost was $ 1,440 each or $360/year Annual obligation $ 77,760 216@ $ 1650 = $ 356,400. Realized 12 % per computer savings

Purchases Under Lease

Additionally, Instruction purchased 205 computers for lab @ $ 370 Annual obligation is $ 75,850

Lease: Where Do We Stand

Most ‘A’ machines gone. Some ‘B’ machines gone.A new inventory is being taken now.

*launch payment spreadsheet

Quad Number Age Power

A 219 1994-2002 128MB– 256MB

B 234 2002-2004 256 MB -512 MB

C 158 2004-2006 512MB – 1GB

D 109 2006 + 1GB – 2GB

The Future of Leasing

In 208-2009 MSJC base budget flat, or worse

The lease dollars are generally from base funds

A GO bond would have allowed some fund movement

Taking lease monies off top of growth dollars has been discussed, and centralizing budget

System and Inventory

Cost to lease 720 @ $360/year = $ 259,200

(Compared to purchase figures)

Year Number purchased

Cost each Total Cost

2003-2004 179 $ 1,500 $ 268,500

2003-2004 119 $ 1,560 $185,640

2004-2005 124 $ 1,620 $ 200,880

2005-2006 100 $ 1,650 $ 165,000

The Future of Leasing

ICTC support for leased technology model

Need to move to Office 2007. - Goal was to complete cycle in 2009-2010 - The need to move to Vista and Office 2007 is driven from Instruction and the need to stay current with marketplace and student demands.

The Future of Leasing

Recommendation:

Continue with the strategy to replace all ‘A’ and ‘B’ computers by end of 2008-2009.

Continue with the strategy to be Vista and Office 2007 compliant by 2009-2010