BayState Realty Case Study


BayStateRealty Case Study

BayStateRealty Case Study

  1. A Table to identify the software products, sited in the Bay State Realty Case Study that fall within the following categories of software

    1. System software

    2. General purpose software

    3. Application specific software

System Software

General Purpose Software

Application Specific

Windows Operating System

Microsoft Office


Android Operating System

Microsoft Outlook

Accounting system

Microsoft Operating System

Microsoft SharePoint

Human Resource System



Real Estate Sales and Documentation System


Microsoft SQL Server

Process-enabling Application Systems

  1. A Table to identify and explain the various elements in the total cost of software ownership

Elements of TCO


Initial acquisition cost

Includes both direct and indirect costs of the desktops, smart phones and tablets, applications and software. It also includes the cost for data server and a departmental printer.

Training cost

Direct and indirect spending on both formal and informal training

Maintenance and support cost

Spending on labor force and personnel for supporting the software

Contracted technical support cost

Costs to maintain supplier agreements and contracts that provide the expert level support.

Application cost

Spending on new software in order to make it compatible with the institution requirements and the existing hardware

  • Steps taken by the CIO for cost control:

      • Procurement and deployment of limited well established off-the-shelf products that are in line with organizational needs.

      • Leverage open source software products.

      • Acquiring a variety of software from Microsoft to allow negotiation for better terms of initial acquisition, maintenance and staff training.

      • Trying Linux as an alternative for Microsoft SQL server.

  1. A List of the reasons why Bay State Realty chose to go with off-the-shelf software instead of developing the air own software packages in house.

  • Off-the-shelve software has been tried and tested.

  • There are specialized software packages that are designed to address the problems that the organization is facing.

  • The time for implementation will be shorter.

  • The outsourced software best fits in the already existing hardware base.

  1. A List of the reasons why it makes sense to go with Linux in the data center

  • It fits well in the overall embedded base of the company’s existing hardware and software acquisitions thus minimizing the total costs.

  • Employees are aware of its implementation and have a positive attitude towards it.

  • Licensing issues are not likely to arise.

  • It does not carry hidden costs.

  1. A Comparison of the advantages and the disadvantages associated with outsourcing the hosting of the firm’s three Web sites.



There is a high level security

Management loses managerial control

More flexible to accommodate landscape changes

Comes with hidden costs

Use of existing hardware helps reduce the costs

Company’s confidential information may leak to the outsourcing company

Strong service level agreement with the outsourcing company

Quality may be compromised in endeavors to make a profit