You conduct a Total Cost of Ownership survey of your Data Centre. Which of the following is an indirect cost?

The correct answer is D. The cost of the power consumption of a server. Power consumption (D) is an indirect cost because it is an ongoing, diffuse operational expense that accumulates continuously over time and is not tied to a single purchase event or deliverable - it's a hidden overhead that is easy to overlook but significant over a server's…

Green IT data center

Question

Options

AThe cost of upgrading cooling equipment.
BThe cost of installing a server rack.
CThe cost of introducing redundant storage.
DThe cost of the power consumption of a server.

How the community answered

(47 responses)

A
15% (7)
B
2% (1)
C
6% (3)
D
77% (36)

Explanation

Power consumption (D) is an indirect cost because it is an ongoing, diffuse operational expense that accumulates continuously over time and is not tied to a single purchase event or deliverable - it's a hidden overhead that is easy to overlook but significant over a server's lifetime.

Options A, B, and C are all direct costs: upgrading cooling equipment, installing a server rack, and introducing redundant storage are each discrete capital expenditures with a clear invoice, a defined scope, and a finite completion point - you can point to exactly what was bought and installed.

Memory tip: Think "direct = delivery" - if someone delivers it and bills you once, it's direct. If the meter keeps running (electricity, cooling overhead, management hours), it's indirect. Power bills never stop, so power consumption is the classic indirect cost in any TCO analysis.

Topics

#total cost of ownership#indirect costs#data center power#server energy consumption

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