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A comparative analysis on the total cost of ownership between thin-clients and fat-clients in an outsourced desktop environment.

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National Ship Chandlers management is trying to understand whether they have achieved a lower Total Cost of Ownership as a result of the migration. In this context, this study aims to clarify which computing environments, thin-clients or fat-clients, deliver a lower Total Cost of Ownership within an outsourced desktop environment.

Introduction

What is Fat-client (FC) Technology?

What is Thin-client (TC) Technology?

This suggests that half of thin client users prefer thin clients over fat clients. Findings: The statistical analysis shows that the majority of thin client users were satisfied with their thin clients. Eighty-six percent of thin client users report that they are at least 'satisfactory' in using thin clients.

Figure 1.1: National Ship Chandler
Figure 1.1: National Ship Chandler's Wide Area Network and Server Layout

Elements ofa Total Cost of Ownership (TCO)

Research Environment at National Ship Chandlers

Based on the above benefits and maintenance and support factors, National Ship Chandlers deployed 42 thin clients and replaced 42 computers. So today there are 53 fat customers (laptops and computers) and 42 thin customers at National Ship Chandlers.

Problem Statement

National Ship Chandlers management would like to conduct a post-mortem assessment of their transition from fat-client (PC laptop) environment to their new thin-client environment. Based on current hardware, software and support costs, a detailed comparative analysis should be examined outlining whether a thin client environment will deliver a lower TCO than a fat client, in an outsourced desktop environment for National Ship Chandlers.

Value of the Research

The results of this study will help National Ship Chandler's CEO make an informed business decision about whether to migrate back to a fat client environment (PCs and laptops), maintain the status quo thin client environment, or migrate more fat clients to a thin client computing platform . These requirements dictate an in-depth examination of the total cost of ownership (TCO) for each of the fat client and thin client environments and contrasting characteristics of each.

Objectives of the Study

To build a cost model for TCO for both a thin client and thick client environment within National Ship Chandlers based on an outsourced desktop solution. To provide recommendations for future strategic direction for the Chandler National Ship desktop environment.

Limitations of the Research

TCO is calculated using hardware vendors - IBM for fat clients and WYSE for thin clients. For the purposes of this study, cost analyzes will only be directly compared between thin clients and PC fat clients.

Research Methodology

Structure of Study

This chapter provides a recommended strategic direction for National Ship Chandlers for the desktop computing environment. This chapter concludes by highlighting the benefits and scope in which thin client technologies can be applied within the industry.

Conclusion

LITERATURE REVIEW

Importance of Research Area

In September 2001, Gartner Research International published a decision framework document on a comparative analysis for the Teo between a thin client and a fat client. Because a minority of enterprises use best practices for managing fat client plagues, thin client deployment for targeted desktop users, as well as for targeted applications, will provide significant savings to most enterprises.

Thin-client Solutions

One of the fastest growing implementations of this new way of thinking is called 'thin client' architecture (Mulders, 2002). As a result, a user can have a thin-client end-user device that has the same "look and feel" as the previous fat-client.

Motivates and Factors Contributing to a Thin-client TCO Analysis

  • TCO Benefit
  • Network Bandwidth Impact on TCO
  • Operation of Thin-Client Computing (TCC) / Server Based Computing (SBC)
  • Thin-client Management
  • Mobility
  • The Incompatibility Hurdle
  • Cutting Costs of Thin-Client Computing (TCC)
  • Architecture and Dimensioning
  • Attractiveness of Thin-Client Computing
  • Thin-client Acceptance
  • Security with Thin-clients

According to Citrix Systems, their thin-client computing technology requires a minimum of 8 Kbps (kilobits per second) for operation (Christiansen, Schauser, and Munke, 2004). Thin-client computing (TCC) technology is causing IT staff to reconsider client-server alternatives.

Figure 2.1:  TCO of Thin-Client versus Fat-Client - Source:  Gartner Research, 2002
Figure 2.1: TCO of Thin-Client versus Fat-Client - Source: Gartner Research, 2002

Advantages of a Thin-client Solution

Morgan (2001) suggests that the greatest operational advantage provided by a thin client architecture is improved information security. As a result, thin client technology can improve operational performance in current desktop architectures while potentially saving significant personnel and equipment resources.

Disadvantages of a Thin-client Solution

So neither bandwidth nor servers within organizations necessarily limit the capability of thin client architecture. Thin-client system weaknesses include potential deficiencies in flexibility, capacity (due to increased demands on bandwidth and processing power), and survivability.

Motivation for Hypothesis

  • Hypothesis and Structure of Research Process

Hypothesis: HI: The total cost of ownership (TCO) of a thin client (TC) IS lower/smaller than the total cost of ownership (TCO) of a thick client (FC) in an external desktop environment. Null Hypothesis: Ho: The total cost of ownership (TCO) of a thin client (TC) IS GREATER than the total cost of ownership (TCO) of a thick client (FC) in an external desktop environment.

Figure 2.5: Research Approach  &  Methodology
Figure 2.5: Research Approach & Methodology

Conclusion

Hardware issues can be managed by swapping out machines and then repairing the thin client at the central IT location or returning it to the manufacturer. The literature review positively supports thin-client computing technologies, outlining the many benefits and major cost savings that can be achieved if implemented effectively.

RESEARCH METHODOLOGy

  • Introduction
  • Quantitative Research
    • Data Collection Techniques and Instruments
    • Population Description and Sample Size
    • Primary Data
    • Secondary Data
    • Other Supplementary Primary Data Techniques
    • Data Collection Procedure
    • Questionnaire Pre-testing
    • Academic Rigor (Reliability and Validity)
    • Reliability and Validity Testing of Fat and Thin-client User Responses
    • Ethical Considerations
  • Qualitative Research
  • Conclusion

In addition, training requirements for the current thin client environment at National Ship Chandlers will be determined. The costs for thin and fat customers will be tested against the hypothesis and the null hypothesis. Qualitative research methods will be conducted to determine the costs for both thin and thick client environments that are outsourced.

RESULTS OF STUDY

Introduction

The cost model will be compared for both fat clients (laptops and desktops) and thin clients.

Proposed Analysis of Data

Results of Data

  • Reliability and Validity Testing between Fat and Thin-client User Responses
  • Age Distribution Landscape
  • Geographic Distribution
  • Job Function Landscape
  • Job Challenge
  • Distribution of Job Dependence on System
  • User's Acceptance of Working with the Computer System
  • Total Average Support Calls per Month of Thin-client vs. Fat-client
  • Total Average Support Calls per Month per Region
  • Thin-client User's Preference to Move Back to Fat-clients
  • Comparison of Training Requirements for Thin-clients vs. Fat-clients
  • Data Availability and Uptime on Thin-clients
  • Productivity of Thin-client Users When System is Offline
  • Training Requirements and Impact on Productivity
  • Performance Requirements - Thin-clients
  • Thin-client User's CDROMlDVDIUSB Usage
  • User's Preference: Thin-client over Fat-client
  • User Training: Citrix System
  • Accessibility to Computer Games: Thin-client Users vs. Fat-clientUsers
  • Virus Infections: Thin-clients vs. Fat-clients
  • Level of Satisfaction: Thin-client Users
  • Fat-client Users Preference over Thin-clients
  • Perceived Accessibility of Applications on Thin-clients
  • Comparative Analysis of Data Integrity on Fat-clients vs. Thin-clients
  • Fat-client Productivity: User Dependence on Fat-clients
  • Performance: User Dependence on Fat-clients
  • Test Preference of Fat-client Users for Thin-client Device

Durban records an average of 234 calls per month from both thin-client and fat-client users. This can be a major motivation for fat-client users to move to a thin-client platform. Test Fat Client users' preference for Thin Clients Test Fat Client users' preference for Thin Client.

Table 4.1: Cross Tabulation on Question 32 and-Question 33
Table 4.1: Cross Tabulation on Question 32 and-Question 33

Factors and Cost Implications of an Outsource of Thin-clients vs. Fat-clients

IBM DMS (2005) uses the COBiT management framework for managing the desktop information technology infrastructure and is considered by both Gartner and IDC as a best practice framework. COBiT (Control Objectives for Information and related Technology) is a framework that proposes an approach to information technology management with the aim of ensuring that the technology delivers the information that meets the needs of the business. Each of the elements are interconnected to provide a well-managed environment with best practices, minimal risk and lowest cost to the business.

Figure 4.30: Building Blocks of IBM DMS - Source: IBM DMS, 2005
Figure 4.30: Building Blocks of IBM DMS - Source: IBM DMS, 2005

Total Cost of Ownership Calculation of Thin-clients versus Fat-clients - Outsourced

  • Protecting the Assets of the Organisation
  • Remote Management and Administration
  • Application Lifecycle Management
  • Information Security Management on Thin-clients
  • The Cost Calculation Model

By using thin clients, information cannot be moved electronically and thus the organization is secured. Therefore, the cost calculation below will provide a comparative analysis between desktop user balances, i.e. 77 thin clients versus 77 fat clients. Total cost of ownership (TCO) analysis for national ship suppliers of thin clients versus fat clients.

Figure 4.34: Cost against Number of Fat-clients versus Thin-clients - Source:
Figure 4.34: Cost against Number of Fat-clients versus Thin-clients - Source:

Hypothesis Testing and Results

Conclusion

National Ship Chandlers' efforts to reduce administration costs and increase operational efficiency can be realized through their thin client computing efforts. Volchkov, (2002) expressed that the main benefits of thin client implementations are reduced maintenance and support for client terminals, a standardized corporate client terminal and centralized resource management. It is therefore of utmost importance to ensure that significant effort is put into change management initiatives to realize the successful implementation of a thin client environment.

RECOMMENDATIONS AND CONCLUSION

Introduction

Evaluation of Objectives of Research

Furthermore, based on questionnaire surveys, 62% of the thin client users chose not to move back to a fat client environment. It concludes that the majority of thin client users have accepted and are satisfied with their thin clients. Objective: To build a cost model for the TCO for both a thin client and fat client environment within National Ship Chandlers based on an outsourced computing solution.

Recommendations

The organization can expect to save approximately 23% per year by implementing a thin-client desktop platform instead of a fat-client platform. It is imperative to note that thin clients are NOT a panacea for the desktop platform in today's organizations, but rather deliver a lower Total Cost of Ownership (TCO) depending on the organizational dynamics, management and users of the technology. It is therefore recommended that National Ship Chandlers work with a preferred IT service provider to plan and implement a thin-client desktop outsourcing rather than a fat-client desktop outsource, with an estimated savings of 23% per year.

Areas of Future Research

National Ship Chandlers will realize a cost saving of R 17,108.91 per month for 36 months if a thin client solution is implemented as opposed to a fat client solution. Considerable research can be done to look at the performance implications of using thin client technologies on cellular data carrier networks. Research into thin client platforms using Open Source technologies such as Linux and Linux Terminal Services can be compared to Microsoft and Citrix to analyze which would provide lower total cost of ownership.

Conclusion

You feel that you have greater access to the computer system on the thin client than. This question can be drawn against QI3 for retesting, Q31 to evaluate users' perception of the reliability of thin client. This question can be drawn against Q45 to compare the vulnerability of viruses to fat client versus thin client environments.

This question can be benchmarked against Q12 for a comparative analysis of support calls within thin client versus fat client environments. This question can be contrasted with question 43, which attempts to relate thin client user feedback. o Disagree or disagree. o Disagree.

National Ship Chandlers WAN

Questionnaire

Comments on Questionnaire for the Reader

Raw Data

The motivation for choosing this research topic is that National Ship Chandler's management believes that due to increasing annual software license costs and the continuous decrease in PC and laptop costs, a thin client on the desktop is not a cost. National Ship Chandlers management would like to conduct a post-mortem review of their transition from a fat-client environment (pCllaptop) to their new thin-client environment. The results of the study will help National Ship Chandler's CBO make an informed business decision about whether to migrate back to a fat client environment (personal computers) or maintain the status quo thin client environment.

Academic Rigor - Reliability Testing

Pricing Case Calculations

Vendor Quotations

Care should be taken to ensure that the database date and program versions are the latest as m8de available on Telkom Inleme. Although every effort has been made to ensure the accuracy of the information in this database, it should not be construed as a representation or warranty by Telkol11 SA Lld or its employees that could form the basis of any claim for IOS5 arising from reliance to the information contained herein. Care should be taken to ensure that the database date and prowarn version are the latest as available on the Telkomlnternet home page.

Authorisation Letter from National Ship Chandlers to Conduct Research

Ethical Clearance Letter

Gambar

Figure 1.1: National Ship Chandler's Wide Area Network and Server Layout
Figure 2.1:  TCO of Thin-Client versus Fat-Client - Source:  Gartner Research, 2002
Figure 2.2: Thin-Clients Projections Worldwide from 2003 to 2007 - Source: IDC Report, 2004
Figure 2.3:  Thin-Client Computing or Server Based Computing Architecture - Source:
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