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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. 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.

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
System
Cost

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

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