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> On Feb 5, 2018, at 12:31 , Richard Laager <[log in to unmask]> wrote: > > 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. Agreed. > 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. OK > 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. Agreed. > 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. Yep. > 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. == no brainer as far as I can see. > 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. In an emergency, the Junipers are also quite cheap on the refurb market (I picked up a bunch of EX4200-48P for $259@ recently). > 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. Yes. > 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. OK > Do you see any flaws in the above or have any additional factors I've > missed? Nope. I never meant to imply I was opposed to the idea of doing the 3-year contract, especially if there’s no cost to splitting the payments as mentioned. I would, however, like to see us consider providing mechanisms to provide greater transparency to members under NDA as a general function of the organization. While this event may not make it necessary, I think having that facility is generally better than not having it, so I took this opportunity to push in that direction. Owen