Technology | Cost of Ownership | Thin Client | Thin Computing | Network Computing | Server Based | RDP | Zero Client

Cost-of-Ownership Comparison

SITUATION ANALYSIS

This study looks at the costs of providing computer access with a networked environment using individual PCs or configurations based on thin-client technology, with zero-client Applica WorkGroup multi-user systems. It uses the methodology developed by the Gartner Group in their total cost of ownership studies, and the figures for the cost of networked PCs and the cost of a variety of thin client (network computer) technologies from their updated study at the end of 1997. The study assumes a corporate environment using a Novell LAN and Windows XP/Server 2003 desktops. The Applica WorkGroup costs used reflect average corporate net cost for multiple clusters.

APPLICA WorkGroup OVERVIEW

Applica WorkGroup software enables one computer running Windows XP/Server 2003 to support more than one user. It extends the multitasking capabilities of Windows from a single user running multiple tasks to multiple users running multiple tasks – up to four additional users sharing a single Pentium-class CPU. The Applica software also enables users to share peripherals, including printers, modems, CD-ROMs, NICs and even dial-up or ISDN communication lines.

WorkGroup software is functional with standard, off-the-shelf Windows XP/Server 2003. All users on an Applica cluster have their own customizable Windows desktop, can run applications independently of other users, and have unique log-in names. Where an Applica system is networked into a Windows XP/Server 2003, NetWare or NT network, each user on the Applica system has a unique network log-in and permissions as well.

Applica WorkGroup uses "dumb" stations that are each made up of a standard VGA monitor, keyboard and mouse, all connected to the host computer using a multi-display adapter and standard Ethernet (CAT 5) cabling. The zero client connection, with 32 Mb point to point throughput, provides high speed, PC-like performance. All stations in a cluster can share the hard disk, CD-ROMs, printers, NICs and other peripherals, as well as a single operating system and many applications. In addition, each station can be up to 500 feet from the host computer and can have a local printer and another serial device.

APPLICA WorkGroup COST ANALYSIS

Initial Investment

An Applica station requires only the connection hardware, and a standard VGA monitor, keyboard and mouse, for a total cost of less than $700. The cost for a single networked PC that is Windows XP/Server 2003 capable and the necessary network hardware ranges from $1200 on up, depending on the configuration and quantity pricing applied. The hardware required for a thin client solution ranges from $600 (for a Java-based NC) to $1000 or more (for Net PCs or Windows Terminal based products), but thin clients also require the purchase of an expensive server (WTS, WinFrame) which significantly increases the overall investment per station.

The corresponding Applica system delivers savings of 40% or more on the initial hardware and system software purchases when compared to similar purchases for networked PCs, and 20% or more when compared to purchases for a thin client based solution.

Implementation and Maintenance Costs

Implementation of an Applica system for Windows XP/Server 2003 is done on a single host PC and does not require the setup, configuration, and testing of individual PCs or thin clients. In addition, the single shared server inevitably provides lower lifetime maintenance costs than the equivalent network, a characteristic that a thin-client solution shares. But thin clients typically involve the presence of some form of a PC at each local station although that PC may lack floppies or other removable storage devices, as in the case of Net PCs. In contrast, the Applica zero client stations are composed of simply monitors mice and keyboards. Because an Applica cluster contains only a fraction of the "moving parts" that stand-alone PCs in a network would include, the MTBF is higher. As a result, part replacements and repairs are minimized over the lifetime of the system. Shared peripherals also reduce lifetime maintenance costs. Overall, a reduction of 50% or more in implementation and maintenance costs is provided by the use of an Applica WorkGroup cluster as compared to the equivalent number of networked PCs.

Total Cost of Ownership

The magnitude of the cost savings Applica clusters provide is clearly illustrated by comparing the total cost of ownership between an Applica WorkGroup with five users, the equivalent number of networked PCs, and a five station thin client-based system, over the course of a year. With Applica, slightly more investment is required for the single server – more RAM, larger hard disk, etc. That additional cost is more than offset by the replacement of the remaining four PCs with monitors, mice and keyboards, providing an overall reduction of 40% or more in the hardware and software investment with Applica as compared to networked PCs. As noted above, implementation and maintenance costs are similarly reduced by a factor of 50%. Finally, the use of Applica clusters results in a significant reduction of the number of PCs subject to periodic updates and maintenance. The user environments are more controlled, and better protected from unauthorized access. The costs of administration may not be significantly affected but both the costs of technical support and of lost user productivity should be reduced by 50% or more.

The Gartner Group estimates that the cost of maintaining a networked PC running Windows XP/Server 2003 averages $9982. In their figure, Gartner calculates a cost of more than $4133 in "end user operations", which includes the time users spend on non-productive or non-business related activities, such as installing software, organizing their hard disks, surfing the Net, sending and receiving non-business related email and playing games. These activities can be minimized or eliminated in an Applica cluster by controlling what is presented in a user’s desktop, and what programs and data that user is allowed to access.

APPLICA vs NETWORKED PCs: A DIRECT COMPARISON

The cost of an Applica system was compared to a network and to a thin client system using the Gartner model, and breaking total costs into Capital Costs, Technical Support, Administration and End User Operations. The Capital Costs figure for Applica was determined by using the Gartner Capital Cost figure for a single networked PC, and increasing it to reflect the higher cost of the Applica server, and decreasing it to reflect the lower cost of each of the Applica stations. The Applica server cost was calculated at $3700, 125% of the single networked PC cost. The Applica station cost was calculated at $1184, 40% of the single networked PC cost. The costs of technical support and end user operation were reduced by 50%, and the cost of administration left unchanged.

The thin client figures used are for an "NC-C", a Java based terminal that the Gartner study reports as having the lowest TCO costs of any of the thin clients. Their study concluded that the NC-C was most likely to be used as a terminal replacement and analyzed it with a single application, rather than the eight applications assumed as part of the personal productivity suite used on a networked PC. Applica, however, in this study, is assumed to be a "PC replacement" and operating with productivity applications rather than just a "terminal replacement" executing a single application.

Gartner Model

Using an Applica cluster instead of Individual PCs in a network results in annual savings of more than $20,000 per station. When multiplied by an average upgrade cycle of 1 to 3 years and then extended to multiple clusters, those annual savings represent hundreds of thousands of dollars for even the medium sized corporation or IS operation.

Applica offers some savings over those of the Java-based thin client, and allows retention of the WINTEL hardware, software, and training investments previously made.

OTHER COST BENEFITS

Peripherals

Initial investment savings increase when peripherals are shared. For example, five users on an Applica based system can share a single high-speed ISDN line and modem while each user is able to browse the Web independently. The monthly charge for a single ISDN line is likely to be $50 or more; one ISDN line has approximately the throughput of four high-speed (28.8 Kbps) analog lines. Likewise, printers, CD-ROMs and NICs can also be shared, eliminating the expense of purchasing such peripherals for each stand-alone PC. The potential savings to be gained range from $300 to $2000 or more, depending on the peripherals. The Applica system in this instance can provide an additional 20% or more in cost savings as compared to networked PCs.

Upgrade Costs

Corporate IS upgrade cycles are as short as two years due to the constant change in hardware and software standards. Applica offers an upgrade path with lower hardware costs and manpower requirements. Only a single CPU must be upgraded for an entire Applica cluster to take advantage of the next generation processor, or for the latest version of key applications or groupware.

ADDITIONAL FUNCTIONAL BENEFITS

Improved Control and Security

One of the main attractions of NCs to major corporations was centralized control over their workers’ computing resources, according to Boston – based Yankee Group3. Applica WorkGroup offers such centralized control through each workstation cluster. It provides more control over system access, both from individual stations and from the main server. Since workstations consist of just a monitor, mouse and keyboard, access to floppy drives by each user is eliminated, and potential for exposure to viruses and unauthorized removal of data is drastically reduced. System administration is correspondingly easier: because there is a single shared server, maintaining users, applications, and peripherals require less time and expense.

Performance

Applica WorkGroups can potentially offer improved performance over networked PCs and even thin clients from several perspectives. Network traffic can be reduced by the location of productivity applications on the Applica server, providing all users in the Applica cluster local access. Where databases are used within a cluster, Applica WorkGroup offers significantly higher performance since the database is accessed and processed and results displayed at bus speed by Applica stations. Over a typical LAN, where applications are not fully client-server aware, the database is sent from the server, locally processed, and then the modified data is returned to the server. Finally, the zero client architecture employed by Applica WorkGroup provides higher performance than a thin client equivalent by definition. It requires no protocol and all data and information is displayed and processed at bus speeds, which are necessarily faster than network speeds.

---------------------------------------------------------------------------------------------------------------------------------------

Applica and Applica WorkGroup are registered trademarks of Applica systems Inc.
All other names are registered trademarks of their respective owners.
1 Zona Research.
2 YankeeGroup.
3 Total Cost of Ownership, VAR Business, March, 1997