On 02/05/2018 11:08 AM, DeLong, Owen wrote:
> I think we’re mostly on the same page.

I think so too.

Bringing this to the members for input may have given the impression
that a problem-needing-solving exists and the board was asking for
suggestions on solutions. To be clear, I don't think there's a problem
here. I think this is a no-brainer.

In terms of the function should_we_buy_3_years(...), the members are
being given an opportunity to suggest the algorithm inside the function
or at least its parameters, not to execute the function and provide the
boolean return value.

Here's my thinking:

I don't see us needing to buy a new switch this year or next
year, so this decision doesn't affect that either way.

We will probably need to add a line card eventually. That is hopefully a
100G line card, to avoid filling the chassis with another 10G line card.
At a quick glance, the 10G has ~35 ports available and the 100G has ~30
ports available. Upgrades to 100G will free up 10G ports. We can also
use breakouts to get more 10G ports out of 100G ports if absolutely
necessary. It looks to me like we should be okay on this front. In the
unlikely event we are not, we will end the year with enough cash to buy
another line card anyway, and if we fill up on ports, that means we also
brought in a bunch of additional money in port fees.

Our only large recurring expense is this contract. The minimum cash
balance with this plan is more than 10x other expenses and 5-10x the
minimum cash balance of last year. That seems fine, and is only
temporary until all port fees are paid, at which point it is even higher.

One of the Juniper switches or modules dying is a risk, but those are
significantly cheaper. We also already have two switches, and all the
participants fit on one, except for the 4 fiber, who could be moved to
the Arista in a pinch.

The interest we'd earn on the cash is zero or nearly zero, so it takes
very little extra discount on 3-years to be acceptable on that basis.

The ratio between the 1 and 3 year options is in line with what I'd
expect from my previous purchases of support contracts from various
vendors. It is in line with a suggested ratio I was provided off-list by
another member.

Do you see any flaws in the above or have any additional factors I've
missed?

-- 
Richard