Systems and methods for economic retirement analysis

• US 8,712,814 B1
• Filed: 06/20/2007
• Issued: 04/29/2014
• Est. Priority Date: 06/20/2007
• Status: Expired due to Fees

• Current Assignee: Sprint Communications Company LP (Deutsche Telekom AG)
• Original Assignee: Sprint Communications Company LP (Deutsche Telekom AG)
• Inventors: Saunderson, Christopher S.
• Primary Examiner(s): LOFTIS, JOHNNA RONEE
• Application Number:
  US11/765,495
• Time in Patent Office: 2,505 Days
• Field of Search: 705/7.11, 705/305
• US Class Current: 705/7.11
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling

Abstract

Systems and methods for economic retirement analysis are disclosed. In some embodiments, the method comprises identifying an existing component and at least one potential replacement component, estimating costs associated with the existing component and the at least one potential replacement component, calculating an economic retirement date for the existing component and an acquisition cost recovery date for the at least one potential replacement component, and storing the economic retirement date and the acquisition cost recovery date. Some system embodiments comprise a first memory that stores economic retirement software, a second memory that stores cost data in association with a component, and a processor that executes the economic retirement software. The economic retirement software configures the processor to calculate an economic retirement date of the existing component and store the economic retirement date.

Claims

1. An economic retirement analysis method that comprises:

identifying an existing component and a potential replacement component, wherein each of the existing component and the potential replacement component are one of software, hardware used to execute software, or a system that includes software or hardware used to execute software;

estimating costs associated with the existing component and the potential replacement component;

calculating, by an economic retirement tool stored on a non-transitory computer readable medium and executed by a processor, an economic retirement date for the existing component in view of the potential replacement component, the economic retirement date defined as a date when a maintenance cost for the existing component exceeds the sum of a maintenance cost for the potential replacement component and a porting cost for the potential replacement component,

calculating, by an economic retirement tool stored on a non-transitory computer readable medium and executed by a processor, an acquisition cost recovery date for the one potential replacement component, the acquisition cost recovery date defined as a date when savings due to a difference between the maintenance cost of the existing component and the maintenance cost of the potential replacement component exceeds the sum of an acquisition cost of the potential replacement component and the porting cost for the potential replacement component;

storing the economic retirement date and the acquisition cost recovery date; and

determining, by the economic retirement tool, that the potential replacement component is economically viable when the economic retirement date is sooner than an end of life for the existing component and when the acquisition recovery date occurs before an end of life of the potential replacement component, the end of life for the existing component is when a vendor ceases to support the existing component, and the end of life for the potential replacement component is when a vendor ceases to support the potential replacement component.

2. The method of claim 1, further comprising identifying a preferred potential replacement component.

3. The method of claim 1, wherein the costs comprise an acquisition cost, a porting cost, a maintenance cost, a software cost, a power cost, and a floor cost.

4. The method of claim 3, wherein the acquisition cost is a purchase price of a component less any discount and any reduction in software cost attributable to the component.

5. The method of claim 1, further comprising identifying a preferred replacement component as the potential replacement component determined to be economically viable with the lowest normalized cost.

6. The method of claim 1, further comprising calculating a retirement date and an acquisition cost recovery date for a plurality of potential replacement components.

7. The method of claim 6, further comprising determining a set of economically viable potential replacement components from the plurality of potential replacement components.

8. The method of claim 7, further comprising ranking the set of economically viable potential replacement components, wherein said ranking comprises:

calculating, for each potential replacement component in the set of economically viable potential replacement components, a sum of;

the maintenance cost for the existing component through an economic retirement date of the existing component for a corresponding potential replacement component in the set of economically viable potential replacement components;

a maintenance cost for the corresponding potential replacement component in the set of economically viable potential replacement components;

an acquisition cost for the corresponding potential replacement component in the set of economically viable potential replacement components;

a porting cost for the corresponding potential replacement component in the set of economically viable potential replacement components;

estimating a length of time for each potential replacement component in the set of economically viable potential replacement components until a vendor ceases to support the corresponding potential replacement component;

dividing the sum for each potential replacement component in the set of economically viable potential replacement components by the length of time for each potential replacement component in the set of economically viable potential replacement components to yield a normalized cost for each potential replacement component in the set of economically viable potential replacement components; and

sorting the set of economically viable potential replacement components in order of increasing normalized cost.

9. An economic retirement analysis system that comprises:

a first memory that stores economic retirement software;

a second memory that stores cost data associated with an existing component; and

a processor configured to execute the economic retirement software, wherein the economic retirement software configures the processor to;

receive data identifying the existing component and a potential replacement component and information that determines a cost associated with the existing component or the potential replacement component;

calculate an economic retirement date for the existing component, the economic retirement date defined as a date when a maintenance cost for the existing component exceeds a sum of a maintenance cost and a porting cost for the one potential replacement component;

calculate an acquisition cost recovery date of the potential replacement component, the acquisition cost recovery date defined as the date when savings due to the difference between the maintenance cost of the existing component and the maintenance cost of the potential replacement component exceeds the sum of an acquisition cost and a porting cost for the potential replacement component;

store the economic retirement date in the second memory; and

determine that the potential replacement component is economically viable when the economic retirement date is sooner than an end of life for the existing component and when the acquisition cost recovery date occurs before an end of life of the potential replacement component, the end of life for the existing component is when a vendor ceases to support the existing component, and the end of life for the potential replacement component is when a vendor ceases to support the potential replacement component.

10. The system of claim 9, wherein the economic retirement software further configures the processor to generate a list of economically viable potential replacement components.

11. The system of claim 10, wherein the economic retirement software further configures the processor to:

rank the potential replacement components determined to be economically viable; and

report the list of economically viable potential replacement components in order of increasing normalized cost, the normalized cost for each of the economically viable potential replacement components comprising a sum of a maintenance cost for a corresponding economically viable potential replacement component and a porting cost for the corresponding economically viable potential replacement component, divided by an estimate of a length of time until a vendor ceases to support the corresponding economically viable potential replacement component.

12. The system of claim 10, wherein the economic retirement software further configures the processor to report a retirement date for the existing component, the retirement date being a date when the vendor of the existing component ceases to support the existing component, less the amount of time needed to acquire the potential replacement component, install and test the potential replacement component, and move data and files, if necessary, onto the potential replacement component.

13. The system of claim 12, wherein the economic retirement software further configures the processor to report an acquisition date of when to initiate acquisition of the potential replacement component, the acquisition date defined as the earlier of the economic retirement date and the retirement date.

14. A method for economic retirement analysis that comprises:

identifying an existing component and a potential replacement component;

estimating a maintenance cost for the existing component and a maintenance cost and a porting cost for the potential replacement component;

calculating, by an economic retirement tool stored on a non-transitory computer readable medium, an economic retirement date for the existing component;

storing the economic retirement date, wherein the economic retirement date is defined as a date when a maintenance cost for the existing component exceeds a sum of a maintenance cost and a porting cost for the one potential replacement component;

determining, by the economic retirement tool, that the potential replacement component is economically viable when the economic retirement date is sooner than an end of life for the existing component and when the acquisition recovery date occurs before an end of life of the potential replacement component, the end of life for the existing component is when a vendor ceases to support the existing component, and the end of life for the potential replacement component is when a vendor ceases to support the potential replacement component; and

ranking, by the economic retirement tool, the potential replacement component determined to be economically viable, wherein the ranking comprises;

calculating a sum of the maintenance cost for the existing component through the economic retirement date, the maintenance cost for the potential replacement component determined to be economically viable until a vendor of the potential replacement component ceases to support the potential replacement component, the acquisition cost for the potential replacement component determined to be economically viable, and a porting cost for the potential replacement component determined to be economically viable.

15. The method of claim 14, wherein the porting cost for the potential replacement component comprises a manpower cost for decommissioning the existing component, an installation cost for the potential replacement component, a testing cost for the replacement component, a software cost for the potential replacement component, and a file transfer cost for the potential replacement component.