Equipment Replacement Program (ERP)
Overview
An addendum to an existing BluBØX System Support agreement, ERP provides for the automatic replacement of key system components such as PCs, monitors, printers, access control electronics and cameras on a pre-defined schedule. (Other components are replaced under the standard BluBØX System Support Agreement on an as needed basis). The ERP option can be elected at any time: its time-clock starts on the date that the program is elected. ERP is available to all BluBØX customers wishing to take part in this proactive support program.
ERP Benefits
Protects Against Product Obsolescence
ERP provides for the automatic replacement of key system components to ensure that they are never in service beyond a predefined number of years. No longer will you face replacing an entire system because it can’t be upgraded. Most systems decrease in performance and functionality over time as hardware becomes obsolete. In contrast, systems protected by ERP INCREASE IN PERFORMANCE and FUNCTIONALITY OVER TIME!
Protects Against Persistent Failure of Aging Equipment
ERP replaces key system components BEFORE they fail. In its simplest form, it is “Preventive Maintenance via Equipment Replacement”. As systems get older their failure rates tend to increase along with the time it takes to repair or replace them. Parts become scarce or no longer available. ERP is a proactive way to replace key system components BEFORE THEY REACH END OF LIFE.
Takes Advantage of the Newest and Best Technology
ERP provides for the inclusion of current technology into an existing system. It keeps your investment functioning at the highest possible level. Why use a memory deficient PC, a low-resolution monitor or camera, or a limited-function access control panel when better, more functional equipment is available?
Increases System Functionality over Time
The replacement of obsolete hardware ensures that ERP-protected installations are always in a position to automatically receive new software upgrades and functionality. You will be more readily able to take advantage of newly released software.
Achieves the Highest Return on Your Support Dollar
Each payment made under ERP allows for a guaranteed, tangible future benefit in the form of new equipment. In contrast, payments into typical support programs provide a benefit only if there is a system failure. ERP is the program that clearly makes the most financial sense. We’ve included a Cost/Benefit analysis below to demonstrate clearly why this is so.
Provides Better Control over the Operating Budget
With ERP, managers can accurately quantify and budget their system costs year after year. With ERP, the replacement cost of the system is incorporated into the system support contract which is treated as an operating expense, freeing the capital budget from the need for system replacement costs.
Combines with Standard Support Programs - Provides much More
The standard support program provides for the replacement of system components as they fail with the same vintage equipment. ERP adds the SCHEDULED REPLACEMENT of key components with NEW, UP-TO-DATE EQUIPMENT so your entire system is covered from top to bottom. Isn’t that the way it should be?
Equipment Replacement Schedules
Under ERP key components are replaced after 6 years in service. The equipment Replacement Schedule for typical installations is illustrated in Chart 1 below.
| Type of Equipment Replaced = = = >> |
PCs |
Monitors |
RAID Array HD |
Servers |
Web Cams |
Switches |
Printers |
UPS’s |
Encoders |
Access Control |
Cameras |
PTZ Cameras |
Replacent in Yrs |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| # | Typical System Description | |||||||||||||
| 2 | Small Tenant System - AC & CCTV | 2 | 3 | 1 | 2 | 4 | 6 | |||||||
| 3 | CCTV Only - 32 Cameras | 1 | 1 | 1 | 1 | 1 | 32 | 6 | ||||||
| 4 | Medium Tenant System - AC & CCTV | 2 | 1 | 8 | 2 | 2 | 16 | 6 | ||||||
| 5 | Medium Tenant System - AC, AM & CCTV | 2 | 1 | 1 | 1 | 16 | 1 | 3 | 2 | 23 | 1 | 6 | ||
| 6 | Small Bldg System - BD, VP, AC, AM, CCTV, Elevator CA | 4 | 4 | 1 | 14 | 1 | 8 | 4 | 4 | 16 | 6 | |||
| 7 | Large Tenant System - AC & CCTV | 4 | 1 | 1 | 1 | 40 | 1 | 1 | 3 | 4 | 32 | 6 | ||
| 8 | Medium Bldg System - 2 BD, VP, AC, CCTV & Elevator CA | 6 | 6 | 1 | 1 | 12 | 2 | 12 | 6 | 6 | 46 | 2 | 6 | |
| 9 | Large Bldg System - 3 BD, 2 VP, AC, Turnstiles & CCTV | 10 | 10 | 1 | 3 | 8 | 3 | 10 | 48 | 2 | 6 |
Chart 1. Equipment Replacement Schedule for Typical Types of Installations
ERP Cost Analysis
Consider the initial cost of installing a system and the typical annual system support associated with it. The addition of ERP increases the system’s support costs by 50%. Now compare the dollars invested in ERP to the cost of replacing the system eight (8) years after installation at 80% of its initial cost: ERP consistently provides savings in the order of 60% over the cost of replacing the system. This is illustrated in Chart 2 below.
| # | Typical System Description |
Initial |
Annual System Support Cost |
Annual ERP System Support Cost | Incremental ERP Cost Over 7 Years |
Est. System Replacement Cost in 8th Year (80% of Initial Cost) | % Savings Using ERP System Support |
|---|---|---|---|---|---|---|---|
| 2 | Small Security System - AC & CCTV | 20,000 | 2,000 | 3,000 | 6,000 | 16,000 | 63% |
| 3 | CCTV Only - 32 Cameras | 45,000 | 4,500 | 6,750 | 13,500 | 36,000 | 63% |
| 4 | Medium Security System - AC & CCTV | 80,000 | 8,000 | 12,000 | 24,000 | 64,000 | 63% |
| 5 | Medium Security System - AC, AM & CCTV | 120,000 | 12,000 | 18,000 | 36,000 | 96,000 | 63% |
| 6 | Small Base Bldg System - BD, VP, AC, AM, CCTV, Elev CA | 150,000 | 15,000 | 22,500 | 45,000 | 120,000 | 63% |
| 7 | Large Security System - AC & CCTV | 200,000 | 20,000 | 30,000 | 60,000 | 160,000 | 63% |
| 8 | Medium Base Bldg System - 2 BD, VP, AC, CCTV & Elev CA | 250,000 | 25,000 | 37,500 | 75,000 | 200,000 | 63% |
| 9 | Large Base Bldg System - 3 BD, 2 VP, AC, Turnstiles & CCTV | 450,000 | 45,000 | 67,500 | 135,000 | 360,000 | 63% |
Chart 2. ERP Cost-Benefit Analysis for Typical Types of Installations