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# United Investments’ management has decided to upgrade its mainframe

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Manager
Joined: 01 Apr 2018
Posts: 125
Location: India
GMAT 1: 650 Q49 V30
GPA: 3.9

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12 Jan 2019, 02:21
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00:00

Difficulty:

55% (hard)

Question Stats:

54% (01:27) correct 46% (01:26) wrong based on 95 sessions

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United Investments’ management has decided to upgrade its mainframe computer servers to the newly developed flash-memory processors (FMPs) instead of purchasing new models of its existing technology, in order to significantly reduce its maintenance costs. FMP computers have simpler, more reliable processors, and their average operational span is substantially longer.

Which of the following would be most useful in assessing whether the bank management’s decision will reduce the company’s maintenance costs?

(A) Whether FMP processors’ operational span is significantly longer than that of new models of existing technology.
(B) Whether FMP computers have higher energy efficiency than that of new models of the existing processors.
(C) Whether mainframe computer manufacturers still produce and market servers that are based on the older technology as well.
(D) Whether the bank's management intends to purchase more mainframe servers next year, in order to expand its capabilities.
(E) Whether other banks in its market recently upgraded their computing systems.

Why is A not important to assess the described plan?

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Manager
Joined: 01 May 2017
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12 Jan 2019, 22:15
We can assess whether the bank management’s decision will reduce the company’s maintenance costs, by either having advantages or disadvantages of FMP's over current Processor's

Which of the following would be most useful in assessing whether the bank management’s decision will reduce the company’s maintenance costs?

(A) Whether FMP processors’ operational span is significantly longer than that of new models of existing technology. - Already mentioned in the statement, it will have an impact in the long run --- The question ask for an Additional Evidence, but this is already evident from the question stem
(B) Whether FMP computers have higher energy efficiency than that of new models of the existing processors. - clearly mentions a advantage over existing processor's new model - low power consumption has clearly an edge, and has more impact on decreasing the maintenance cost right from the first day
(C) Whether mainframe computer manufacturers still produce and market servers that are based on the older technology as well. - Not relevent, as nothing is specified in comparison to both the processors, which reduces the maintenance cost
(D) Whether the bank's management intends to purchase more mainframe servers next year, in order to expand its capabilities. - this is a contradiction to the decision specified in the statement, as it already has taken decision to move towards FMP's
(E) Whether other banks in its market recently upgraded their computing systems. - It's a generalized statement, which doesn't state from which processor to which processor the banks are upgrading
Manager
Joined: 11 Feb 2018
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GMAT 1: 690 Q47 V37
GMAT 2: 710 Q50 V36
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13 Jan 2019, 00:02
B - What if the energy levels are equal..?

Can mark B by POE, but B is not perfect
Manager
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13 Jan 2019, 00:14
redskull1 wrote:
B - What if the energy levels are equal..?

Can mark B by POE, but B is not perfect

yes, it's a reasoning question and this is one of the main point which we need to look into, because if it is not energy efficient, the maintenance cost increases undoubtedly, and there is no point in moving from current Processor to FPM stating the reason as to decrease the Maintenance cost, as we have the other advantages stated in question this one loss can hinder the other advantages.
So this statement plays a crucial role to determine whether their decision will bring in the positive results.
For a moment let's think it has equal energy level, even then FPM has edge over the existing due to the advantages stated in the question
Intern
Joined: 08 Jul 2016
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15 Jan 2019, 12:31
I do not see any connection between energy efficiency and maintenance cost . There are machines that have high energy efficiency and have high maintenance cost. The conclusion is about maintenance cost.
Manager
Joined: 01 Apr 2018
Posts: 125
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GMAT 1: 650 Q49 V30
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15 Jan 2019, 20:52
OE (from examPAL) is as follows:

We’ll go for LOGICAL because the logic behind the argument’s structure can help us answer the question.
We’re looking for an answer that helps us compare the maintenance costs of FMP computers with computers using the new models of existing processor technology: (B) does exactly this – energy efficiency is a component of maintenance costs, so that the greater the efficiency, the lower the cost.
Manager
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Updated on: 15 Jan 2019, 22:21
By energy efficiency, we mean low power consumption, think there are 100 of old processors are replaced by FPM's. saving 50-100 units of power per day implies ₹ 1000 rs per day.. for month 1500 units... ₹ 30,000 per month... which reduces the overall maintenance cost..

Even simple example would be the reason why we go for an LED bulb rather than a normal one.. just because it consume less power..highly energy efficient

Originally posted by Dare Devil on 15 Jan 2019, 21:11.
Last edited by Dare Devil on 15 Jan 2019, 22:21, edited 2 times in total.
Intern
Joined: 08 Jul 2016
Posts: 41

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15 Jan 2019, 21:42
I disagree. Energy savings does not mean less maintenance cost. I agree that, when compared with LED bulbs, incandescent bulbs do have lower energy efficiency but at the same time they also have zero maintenance cost.
Manager
Joined: 01 May 2017
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15 Jan 2019, 22:26
manishcmu wrote:
I disagree. Energy savings does not mean less maintenance cost. I agree that, when compared with LED bulbs, incandescent bulbs do have lower energy efficiency but at the same time they also have zero maintenance cost.

According to Pickett, HP's Superdome series (which could be called a mainframe in its own right, IMO) uses 42 percent less power than an xyz AB mainframe server (Hided the actual name). He estimates that the power saved by this swap-out would be enough to light 80 homes for one year.

This is an article in an Websites in 2009, which explains how important power consumption is as cost of maintenance of a server.

I agree there could be other issue which have more impact than energy efficiency, but being already stated FMP computers have simpler, more reliable processors, and their average operational span is substantially longer, in the question.... we are only asked to find other important factor most useful in assessing whether the bank management’s decision will reduce the company’s maintenance costs
United Investments’ management has decided to upgrade its mainframe &nbs [#permalink] 15 Jan 2019, 22:26
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