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-
- Subject: Power Protection
-
-
- I. Situation Analysis
-
-
- Our company is becoming increasingly dependent upon on our data
- processing and other electronic equipment. We should consider
- purchasing an Uninterruptible Power System (UPS) to protect our
- investment. The proper UPS will protect us from power problems
- that can cost us money. It will not only back us up when power
- fails, but will provide continuous computer-grade power.
-
-
- A recent Wall Street Journal article I read detailed just how
- much businesses rely on computers. It stated " ... computers
- have crept gradually into companies, leaving top executives
- unaware of their strategic importance. They don't realize that
- the value of the information in the computer could very easily
- be worth several times the value of the hardware, software, and
- building." Over 85% of companies have reached a self-described
- state of heavy or total dependence on their computer facilities.
-
-
- A study by IBM indicated that on average a computer could expect
- to encounter over 120 aberrant power events per month. The
- damage that these problems can cause ranges from relatively
- minor transient data loss, to potentially crippling hardware
- damage. I am concerned that such damage could have serious
- adverse consequences for our operations, such as:
-
- 1) Loss of irreplaceable data
-
- 2) Decreased revenue and cash flow
-
- 3) Adverse effects on our customers
-
- 4) Failure to meet deadlines
-
- 5) Hours or even days of work (and overtime) to recover damaged
- and/or lost data
-
- 6) Adverse effects on company productivity (and profitability)
-
- 7) Management adopting an unfavorable view of the DP staff
-
-
- Page 2
-
- II. Proposed Solution
-
-
- The solution to our power problems is a well-designed UPS. This
- type of UPS will:
-
- 1) Continue to provide computer-grade power when utility
- power fails. The UPS does this without power
- interruption. Our computer will never notice the switch
- to backup power.
-
- 2) Continuously clean raw utility power. It will prevent
- damaging sags, spikes and surges, common to utility
- power, from reaching our equipment.
-
- 3) Dynamically respond to load changes as well as line
- changes. High current devices elsewhere in the building
- can generate line disturbances. The UPS takes care of
- these problems.
-
- 4) Provide spike and noise attenuation.
-
- 5) Readily manage the switching power supplies used in our
- computers. It will also handle start-up surges well.
-
-
- There are many products claiming to provide power protection.
- Among them are standby power systems, surge suppressors and
- spike arrestors as well as UPS's. An article in a recent
- Datamation stated, "A UPS is the only type of power conditioning
- system that can provide total power protection from power line
- irregularities and even failure."
-
-
- There are two main approaches to UPS devices, double-conversion
- and ferroresonant transformer based UPS. The double-conversion
- units change AC to DC to maintain a bank of batteries. This DC
- is then reconverted to AC by the power equipment. This approach
- is inefficient since it wastes power by generating excess heat.
- It is unreliable because of a high parts count and continuous
- component stress. It cannot readily deal with nonlinear current
- requirements of switching power supplies used by all modern
- computers.
-
-
- In contrast, the ferroressonant based UPS suffers from none of
- these costly deficiencies. This makes them the clear choice for
- our needs.
-
-
-
-
- Page 3
-
- After studying many different products from various
- manufacturers, I recommend the FERRUPS brand UPS from Best Power
- Technology, Inc. The reasons for my selection are:
-
- 1) Best Power Technology pioneered ferroresonant
- transformer based UPS technology. Their current product
- is a third generation device with a proven field record.
- They are currently the world's leading manufacturer (in
- dollar volume) of single phase UPS.
-
- 2) Initial cost is 20-50% less expensive than the
- competition. It has a higher efficiency and reliability
- and lower operating costs.
-
- 3) FERRUPS is an intelligent UPS. It can communicate
- directly with a computer or terminal. All operating
- parameters are easily verified. Any alarm conditions are
- reported audibly by use of unique tone sequences.
-
- 4) The manufacturer offers total support, before AND after
- the sale. They offer customer service plans, extended
- warranty plans, on-site maintenance and toll-free 24-hour
- telephone support.
-
-
-
- III. Cost/Benefit Analysis
-
-
- The final cost of providing power protection will vary depending on
- exactly what equipment we decide to protect, which in turn will
- dictate the size of the UPS needed. Some sample configurations and
- costs would be:
-
-
- Size of
- FERRUPS Unit Initial Cost Equipment Protected
- ------------ ------------ -------------------
- 500 VA $ 895.00 Microcomputer
- 4.3 KVA $ 4,295.00 Small minicomputer & peripherals
- 7 KVA $ 6,195.00 Mid-sized mini & peripherals
- 12.5 KVA $10,375.00 Large local area network
- 18 KVA $12,745.00 Large mini and many peripherals
-
-
- Page 4
-
- Annual Operating Expenses:
- --------------------------
- (1) (2) (3) Total
- Size of Cost of Power Service Annual
- FERRUPS Unit Depreciation to operate Contract Cost
- ------------ ------------ ------------- -------- -------
- 500 VA $ 89.50 $ 65.00 $ 53.33 $ 207.88
- 4.3 KVA $ 429.50 $204.00 $530.00 $1,163.50
- 7 KVA $ 619.50 $303.00 $591.66 $1,514.16
- 12.5 KVA $1,037.50 $606.50 $703.33 $2,347.33
- 18 KVA $1,274.50 $800.00 $756.66 $2,831.16
-
- 1) Based on an estimated operating lifetime of 10 years.
-
- 2) Based on seven cents per kilowatt hour.
-
- 3) Annual cost based on three year on-site warranty plan.
-
- These costs are quite reasonable in the context of other
- expenditures for security, insurance and preventitive maintenance.
- For example, consider the cost of providing physical security by a
- security guard:
-
- Hours worked:
- -------------
- 200 working days x 15 hours per day (5:00 PM to 8:00 AM)
- 165 non-working days x 24 hours
-
-
- Annual Cost:
- ------------
- 6888 hours x $5.00/hour ==> $30,440.00 annual cost
-
-
- Good management plans for contingencies. Human nature tends to
- believe "it will never happen to me". Since we rely heavily on
- our data processing facilities, it makes good business sense to
- protect them. Commercial power is simply not reliable enough.
- The initial and operating costs of UPS protection are far less
- than the costs of recovering from a major power outage.
-
-
- Computer-grade power, provided by the UPS is actually beneficial
- to our equipment. We will realize those benefits through
- decreased downtime and service costs as well as prolonged
- equipment life.
-
-
- Page 5
-
- I feel a UPS is an intelligent choice for our company. The
- FERRUPS from Best is clearly the most cost-efficient choice for
- us.
-
-
- Please contact me if there is anything I can help you with in
- your decision. I welcome the opportunity to oversee the
- selection, purchase and installation of this system.
-
-
-
-
-