Page 1 of 1
RB service life (MTBF) for investment analysis
Posted: Sun Feb 07, 2010 8:22 pm
by ProudGeek
Hi All,
I am calculating the internal rate of return (IRR) for a WiFi project involving a large number of MikroTik Routerboards (mainly RB411 family). What is the average service life or Mean Time Between Failure (MTBF) of these boards?
I was going to use 10 years as a guess. Does anyone have hard numbers for this statistic?
They will be installed outside in weatherproof enclosures in the Pacific Northwest United States.
Thanks!
Re: RB service life (MTBF) for investment analysis
Posted: Mon Feb 08, 2010 9:49 am
by normis
we haven't done any certified tests officially, so my guess would be as good as yours
maybe others have experience and could share?
Re: RB service life (MTBF) for investment analysis
Posted: Mon Feb 08, 2010 11:42 am
by aaa
MTBF for same type each RB batch can be very different. It's related with when this RB is made, where and how large is production bath and some other consedirations.
Re: RB service life (MTBF) for investment analysis
Posted: Mon Feb 08, 2010 8:35 pm
by ProudGeek
MTBF for same type each RB batch can be very different. It's related with when this RB is made, where and how large is production bath and some other consedirations.
Yes, that is understandable. There are tolerances and acceptable variances for any product. But isn't that what the MEAN means in MTBF?
However, I am trying to follow the principle of Conservatism. What would you guess for the shortest life of a batch of RB411's?
Re: RB service life (MTBF) for investment analysis
Posted: Tue Feb 09, 2010 6:09 am
by nz_monkey
I would calculate your ROR around a 3 year replacement cycle, this will ensure your network remains up to date. Sure you may get 5 or more years out of it, but if you do your calculations on 3 years than any extra time it keeps running for over this is for free.
My 2c
Re: RB service life (MTBF) for investment analysis
Posted: Tue Feb 09, 2010 6:58 am
by ProudGeek
Much appreciated nz_monkey.
I'm not an accountant, but I'm guessing this would constrain the depreciation schedule to 3 years also.
Ciao!
Re: RB service life (MTBF) for investment analysis
Posted: Tue Feb 09, 2010 9:42 am
by nz_monkey
Yes, it would I am not sure of the depreciation laws in your country but in NZ they are rather favorable in regard to IT equipment allowing it to be depreciated to almost $0 value in 1.5 years.
It may be a good idea to join WISPA if you are not already a member, I am sure other members will be able to give you advice on what business model works best within the federal and state tax laws.