Vital_Wave_Consulting_Affordable_Computing_TCO11June08
34 pág.

Vital_Wave_Consulting_Affordable_Computing_TCO11June08


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Assume a one-year, comprehensive, on-site warranty for each computer. 
This price was calculated based on 
the creation of a typical 
configuration derived from a 
global scan of low-cost computing 
solutions targeted to developing 
countries conducted by Vital 
Wave Consulting in the winter of 
2007. Vital Wave Consulting 
Global Low-cost Computing 
Scan, January 2008 
 
Vital Wave Consulting, Inc. Confidential and Proprietary. 
Do not copy or send to third-parties in whole or in part. 
Affordable Computing for Schools in Developing Countries Page 21 of 34 
Copyright 2008 8/15/2008 
Computer Hardware: 
Student computer, 
PC and Laptop 
Servers, and control 
software 
Ultra Low-cost Computer: Assume a price of US$285 for the ultra low-cost computer, which is a mini-
laptop computer. Assume that the computer lab is equipped with 16 ultra low-cost computers, one of 
which is a "PC Server" and functions as the server as well as a student or teacher-used computer. In the 
case of the Classroom access scenario, assume the classroom is equipped with 31 ultra low-cost computers 
(which come bundled with the required control software) and that the server (a US$1,000 mainstream, 
full-featured laptop computer) is also the teacher's computer. Assume that the ultra low-cost computer 
has an operational life of three years; hence the server as well as each of the ultra low-cost computers will 
need to be replaced one time during the 5 year TCO. Assume a one-year, comprehensive, on-site warranty 
for each computer upon purchase. Note: a mini-laptop computer is a clamshell-style portable computer 
that can run on batteries and is smaller than a standard laptop. 
This price was calculated based on 
the Classmate PC, which is the 
sub-laptop with the most traction 
in the education field in 
developing countries (note: the 
Classmate PC list prices are not 
publically available, the US$285 
price is derived from a scan of the 
prices of recently announced 
sales). Vital Wave Consulting 
Global Low-cost Computing 
Scan, January 2008 
Computer Hardware: 
Student computer, 
PC and Laptop 
Servers, and control 
software 
Secondhand Computer: Assume a refurbished computer and associated components are purchased in the 
formal channel and are priced at US$254.25 (US$198 for the CPU, with a refurbished monitor US$46, a 
refurbished keyboard for US$6.75 and refurbished mouse for 3.50).Assume a one-year, comprehensive, 
on-site warranty for each computer. Assume that the computer lab is equipped with 16 secondhand 
computers, one of which is a "PC Server" and functions as the server as well as a student or teacher-used 
computer. Assume that the secondhand computer has an operational life of three years and hence a 
second group of 16 refurbished computers and associated components priced at US$254.25 will be 
purchased in year 4 and will have a one-year, comprehensive, on-site warranty for each computer. Assume 
a one-year, comprehensive, on-site warranty for each computer for each of the purchases (total of two 
one-year warranty periods). 
 The computer configuration was 
derived from installations in 
Africa and Latin America as 
described and configured by 
emerging market technology and 
education experts in South Africa 
and the Latin America. 
Unlimited Power 
Supply (UPS) or 
Inverter and Batteries 
Assume the purchase of 2 UPS systems and associated battery packs that will provide 1-2 hours of back-
up for the 16 desktop computers in the computer lab environment and the 31 sub-laptop and one full-
featured laptop computers in the classroom environment for a total cost of US$1,262 and a set of two 
replacement batteries (either 2 large batteries or 2 banks of smaller batteries) that are purchased 
subsequently during the 5 year TCO period at a total cost of US$400. Assume the purchase of 1 UPS 
system and associated battery pack that will provide 1-2 hours of back-up for the 16 sub-laptop computers 
for a total of US$631 and a set of replacement batteries (either 1 large battery or a bank of smaller 
batteries) at a total price of US$200 during the 5 year period. For rural areas, assume the purchase of two 
Inverters (2.0 KVA with a back-up time of 180 minutes, minimum VAH 8640) priced at US$1,000 each 
with an associated battery pack priced at US$300 each for the mainstream computers for a total cost of 
US$2,600. Assume the repurchase of battery packs US$300 each, one time during the 5 year TCO for a 
total cost of US$600. 
Input from emerging market 
technology and education 
experts* 
 
Vital Wave Consulting, Inc. Confidential and Proprietary. 
Do not copy or send to third-parties in whole or in part. 
Affordable Computing for Schools in Developing Countries Page 22 of 34 
Copyright 2008 8/15/2008 
Printers Assume the purchase of one mid-range DeskJet printer priced at US$100 and with a one-year warranty. Input from emerging market 
technology and education 
experts* 
Router or Switch 
Assume a local area network (LAN) connects the computers in both the computer lab and classroom 
environments. Assume that the PC / Laptop Server or host is connected to the Internet (via dial-up in 
rural areas and broadband, DSL, in urban areas) and the PC/Laptop Server or host shares the Internet 
connection with the other computers through the LAN, either wirelessly in the case of the ultra low-cost 
laptop computers or via Ethernet connections in the case of the mainstream computers, low-cost 
computers, and secondhand computer solutions. In the rural dial-up scenario, the PC / Laptop Server is 
connected to the phone line and the ethernet port is connected to a to the input of a 16 port switch which 
in turn connects to the other PC's. In the broadband scenario the PC/Laptop Server, as well as the other 
computers/laptops are connected to the DSL line through a 16 port router. Assume the single port DSL 
modem/router costs US$75, the 16 port router costs US$200 and the 16 port, 100 MBPS switch costs 
US$75. Assume a one-year warranty on the routers and switches. 
Input from emerging market 
technology and education 
experts* 
Total Transportation Fees 
Transportation fee 
Assume a transportation cost equivalent to 5% of the value of the total initial hardware investment for 
delivery of the technology to rural areas. The value of the total initial hardware investment includes the 
price of the hardware: cost of computers, PC / Laptop server(s), monitors, keyboards, mouses, printer, 
UPS system and the router or switch and network cabling for the computer lab). 
Input from emerging market 
technology and education 
experts* 
Total Network Cabling 
Network cabling 
Assume cabling costs US$865 for the mainstream, low-cost, and secondhand installations in the computer 
lab. Assume cabling costs 80% less, or US$173, for the ultra low-cost computers solutions in both the 
classroom and computer lab environments because they are configured with wireless, and not ethernet, 
networks (80% less is assumed as some cabling needs to be done to connect the laptop server to the 
Internet connection and a technician may charge a minimum rate for making a site visit to conduct this 
work). 
Third party studies - developing 
countries** and Input from 
emerging market technology and 
education experts* 
Total Deployment Costs 
Deployment 
Assume that the installation, deployment and acceptance of the hardware, software and the network is 
conducted by a certified technician. In the computer lab, the deployment costs are equivalent to two days 
of service fees and for the classroom environment they are equivalent to three days of service fees (for the 
Microsoft-based solutions it is based on the Microsoft-trained