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You are the program manager for your organization and you're trying to determine if you buy or build a software solution for your organization. If you build the solution it'll cost you $75,000 to create and it'll cost you
$12,000 per month to support. If you hire a vendor they can build the solution for $63,000 but their solution will cost you $15,500 per month to support. How many months would you have to use your in-house solution to equate to the cost of the vendor's solution?
Suggested Answer: C
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33 comments · newest first
VI
Vivan
11 months ago
I think it's closer to 3.5 months based on my math.
RO
Rodolfo
11 months ago
Totally agree, in-house is cheaper in the long run!
RU
Rusty
12 months ago
Wait, how can the vendor's support be that much more?
KA
Kaycee
12 months ago
I calculated around 6 months, seems off.
SA
Salley
1 year ago
It's about 10 months to break even!
DE
Devorah
1 year ago
I believe we need to find the break-even point, and I think it might be around 10 months based on my calculations.
SH
Sherly
1 year ago
I'm a bit uncertain about the monthly support costs. Do we add those to the initial costs for both options?
JO
Jose
1 year ago
If I recall correctly, we need to compare the total costs of both options over a certain number of months. I think I practiced a similar question last week.
NU
Nu
1 year ago
I think I remember something about calculating total costs over time, but I'm not sure how to set it up for this question.
GA
Gabriele
1 year ago
I'm pretty confident I can solve this. I just need to set up the equations and do the math.
BE
Berry
1 year ago
I'm a bit confused on how to approach this. Should I focus on the monthly costs or the initial build costs?
OW
Owen
1 year ago
Alright, I think I've got this. We just need to find the point where the two costs are equal.
TH
Therese
1 year ago
Hmm, this seems tricky. I'm going to start by calculating the total cost of the in-house solution and the vendor's solution.
IS
Isadora
1 year ago
Okay, let's break this down step-by-step. We need to find the number of months where the in-house solution cost equals the vendor's solution cost.
HE
Hermila
1 year ago
This looks like a straightforward question about modifying the persistence profile on a BIG-IP device. I think the key is to understand how the persistence settings work and how to configure them to track each unique IP address.
PA
Pamella
1 year ago
I've worked with SAP solution extensions before, so I think I've got a good handle on this. The direct delivery and software licensing aspects are going to be important here.
AL
Alesia
1 year ago
This seems like a good opportunity to practice my Python skills. I'll give it my best shot and see if I can figure out the right solution.
VI
Virgie
2 years ago
Haha, this is a tough one. Kinda like trying to decide between homemade or takeout, you know? In the end, it's all about crunching the numbers. I think I'm going with option A, it just seems more straightforward.
KR
Kristel
1 year ago
Jaime: Yeah, homemade always seems to be the better choice in the end.
JA
Jaime
1 year ago
User 2: I think option A makes sense, it's more cost-effective in the long run.
JE
Jerry
1 year ago
User 1: I agree, it's definitely a tough decision.
SH
Shawnda
2 years ago
You know, this reminds me of that time I tried to build my own furniture. Took me forever, and it ended up costing way more than just buying it. I'd go with the vendor's solution, option D seems legit.
DE
Devorah
2 years ago
I'm not so sure about that. With the vendor's solution, we'd be paying more per month, but we wouldn't have to worry about the upfront costs and maintenance. I'm thinking option B might be the way to go.
SH
Shad
1 year ago
True, we need to weigh the upfront costs against the long-term maintenance expenses. It's a tough decision to make.
RO
Rosalind
1 year ago
That's a good point. Maybe we should consider how long we anticipate needing the software before making a decision.
EL
Elza
1 year ago
User 2: Yeah, I agree. Even though the monthly cost is higher, we wouldn't have to deal with the upfront costs and maintenance. Option B seems like the better choice.
GE
Georgene
1 year ago
User 1: I think option B makes sense. The vendor's solution might end up being more cost-effective in the long run.
WI
Winfred
1 year ago
But what if we end up needing the software for a longer period of time? Wouldn't it be cheaper to build our own solution?
LA
Laine
2 years ago
I think option B makes sense. The vendor's solution might end up being more cost-effective in the long run.
JE
Jenelle
2 years ago
I'm not sure, but I think we should consider all factors before making a decision.
KR
Kristel
2 years ago
Hmm, I'm leaning towards option C. It seems like the in-house solution would be more cost-effective in the long run, as long as we use it for at least 3.5 months.
KA
Kanisha
2 years ago
I disagree, I believe option C is the most cost-effective.
PA
Pamella
2 years ago
I think option A is the best choice.