Continental Motors ERP Deployment

Cost Analysis & Infrastructure Planning

Submitted by: Dotech Limited

Recommended: Physical Deployment

৳2,74,20,000 Savings

Physical 3-Year TCO

৳1.62Cr

Cloud 3-Year TCO

৳4.36Cr

Total Savings

৳2.74Cr

Break-even

18 Mo.

3-Year Cost Comparison

Primary Data Center Hardware Requirements

Component Specifications Unit Cost (BDT) Quantity Total Cost (BDT)
Web/API Server 8-core CPU, 32GB RAM, 500GB SSD ৳1,80,000 2 ৳3,60,000
ERP & DB Server 16-core CPU, 64GB RAM, RAID-10 SSD, 1TB+ ৳4,50,000 2 ৳9,00,000
AI Inference Node 16-core CPU, 64GB RAM, 1TB NVMe + RTX 4090 ৳6,50,000 2 ৳13,00,000
DotAI Workflow Node 4-core CPU, 16GB RAM, 250GB SSD ৳1,20,000 2 ৳2,40,000
Backup Server 8-core CPU, 16GB RAM, RAID-6, 4TB ৳2,50,000 1 ৳2,50,000
Network Equipment Firewall, Switches, Load Balancer ৳3,50,000 1 ৳3,50,000
UPS & Power 10KVA UPS, PDUs, Cables ৳2,50,000 1 ৳2,50,000
Hardware Subtotal ৳36,50,000

Server Room Facilities Cost

Initial Setup Costs

Component Cost (BDT)
Room Construction৳3,50,000
Cooling System৳4,50,000
Fire Suppression৳2,00,000
Flooring & Racks৳3,50,000
Monitoring & Security৳2,00,000
Total৳15,50,000

Annual Operating Costs

Expense Annual (BDT)
Electricity৳5,40,000
Internet & Connectivity৳3,00,000
Maintenance৳2,40,000
Security & Insurance৳1,80,000
IT Staff (2 Personnel)৳14,40,000
Total৳27,00,000

Break-even Analysis

12 Months

৳61L Difference

18 Months

Break-even Point

24 Months

৳1.68Cr Savings

36 Months

৳2.74Cr Savings

3-Year Total Cost Breakdown

Cost Category Physical Year 1 Physical Year 2 Physical Year 3 Physical Total Cloud Annual Cloud 3-Year
Hardware/Infrastructure ৳43,10,000 ৳5,00,000 ৳5,00,000 ৳53,10,000 ৳1,32,60,000 ৳3,97,80,000
Software & Licensing ৳4,20,000 ৳4,20,000 ৳4,20,000 ৳12,60,000 ৳10,20,000 ৳30,60,000
Facilities Setup ৳15,50,000 ৳0 ৳0 ৳15,50,000 ৳8,00,000 ৳8,00,000
Operating Costs ৳27,00,000 ৳27,00,000 ৳27,00,000 ৳81,00,000 - -
TOTAL ৳89,80,000 ৳36,20,000 ৳36,20,000 ৳1,62,20,000 ৳1,50,80,000 ৳4,36,40,000

Total 3-Year Savings with Physical Deployment: ৳2,74,20,000 (63% cost reduction)

Branch Infrastructure Requirements

Hardware per Branch

Edge Node Server (4-core, 8GB RAM) ৳80,000
GPU (NVIDIA Jetson Nano - Optional) ৳45,000
Network Equipment ৳25,000
Total per Branch ৳1,50,000

5 Branches Total Cost

Edge Servers (5 branches) ৳4,00,000
GPUs (3 branches) ৳1,35,000
Network Equipment (5 branches) ৳1,25,000
Total Branch Investment ৳6,60,000

Financing Options for Physical Deployment

Option Structure Monthly Payment Benefits Year 1 Reduction
Bank Loan 3-year term, 12% interest ৳21,50,000 Ownership, tax benefits ৳32,00,000
Lease Financing ⭐ 3-year lease, buyout option ৳18,75,000 Lower monthly, upgrade flexibility ৳35,25,000
Vendor Financing Equipment financing, 36 months ৳19,25,000 Bundled support, warranty ৳33,75,000

Recommended: Lease financing reduces Year 1 cash outflow from ৳89.8L to ৳54.55L

Implementation Timeline & Budget

Phase 1

Months 1-2: Infrastructure Setup

Server room construction, initial hardware procurement

৳20,00,000

Phase 2

Months 3-4: Hardware Installation

Hardware installation, network setup, system configuration

৳35,00,000

Phase 3

Months 5-6: Deployment & Go-Live

Software deployment, testing, training, go-live

৳15,00,000

Ongoing

Monthly Operations

Operations, maintenance, support, monitoring

৳2,80,000/month

Risk Assessment & Mitigation

Physical Deployment Risks

High Initial Investment

৳89.8L in first year

Mitigation: Lease financing

Technology Obsolescence

Hardware refresh every 3-4 years

Mitigation: Planned upgrade cycles

Operational Complexity

Requires skilled IT staff

Mitigation: Training and support contracts

Cloud Deployment Risks

Cost Escalation

10-15% annual price increases

Mitigation: Reserved instances

Vendor Lock-in

Migration costs and complexity

Mitigation: Multi-cloud strategy

Internet Dependency

Requires reliable connectivity

Mitigation: Multiple ISP connections

Strategic Recommendations

🏆 Recommended Approach

Physical deployment with lease financing for optimal TCO and control

💰 Financial Impact

৳2.74Cr savings over 3 years (63% cost reduction vs cloud)

⏱️ Timeline

6-month implementation with break-even at 18 months