And you say this because of your extensive experience in running such systems in a corporate environment? Or are you just bleeming GUESSING?
I don’t know how much the SDMB costs to run, because I don’t have enough info. I don’t know how much hardware the software needs to support the load this system has - do you? I don’t know what hardware this is running on - do you? I don’t know how extensive the backup plan, disaster recovery plan, maintenance plan, and other plans are - do you?
But let me tell you something - $41,000 per year is CHUMP CHANGE in corporate IT. For all you know, this board could be running on a server class machine with a RAID 5 array, high-quality backup systems, UPS, etc. It could be in a server room with a 10-ton air conditioner. Perhaps the SDMB hardware is actually a cluster of machines - redundant backup and failover, separate machine for the database, etc. I have no idea. But you seem to be absolutely certain of your facts, so let’s hear it. What environment is this board running in? What are the hardware costs? How much does it cost to maintain a rotating daily backup with offsite storage for this board?
How much handholding does a system like this need when running a board this large? Is an IT guy having to do daily maintenance?
To give you some clue as to what this might cost, consider that it would not be unusual at all for the hardware this thing runs on to cost at least $20,000. Server machines are not cheap, nor are RAID systems and substantial UPS’s. If it’s running a separate Database server, feel free to double it. Then there’s the ongoing cost of backup media, bandwidth, power…
Computers are generally depreciated 100% over three years. That means a $20,000 machine is expensed out at about $7,000 per year. Let’s say bandwidth costs them $1000/mo. Now we’re already at $19,000 per year for one computer, with no labor.
And if the IT guy’s time isn’t used that much when the board is running smoothly, that’s great. But how much time does he have to spend when the board goes down? Or when a major upgrade is planned? If he’s making $70,000 per year, the actual cost of him to the company is probably closer to $100,000. If he spends 10% of his time over the course of a year dealing with SDMB issues, there’s another $10K. On the other hand, maybe the IT maintenance on this board is done by a new hire earning $25,000. I have no idea - do you?
Then there’s opportunity cost. No business sets all this stuff up for fun. They have to analyze not just how much they are making, but how much more they could make if they took the same resources and invested them elsewhere.
Oh, and did you bother factoring in the cost of processing thousands of payments, and the cost of the accounting associated with the board? The percentage VISA gets out of the sale? Do you really have ANY idea of how this all works?
Bottom line is that this board could maybe run for $10K a year, or maybe ten times that amount. I certainly have no idea - a large part of that depends how efficient the Reader’s IT systems are, and how high the quality is of the systems surrounding the board (how robust backups are, whether there is failover involved, yada yada). You must have some really good inside information if you are so certain of what you know.
BTW, I ran a commercial message board for several years. It was a fraction of the size of this one, and it cost us close to that $40K mark. $700/mo for connectivity, $8,000 for comm hardware which had to be replaced every year or two, $10,000 for the computer, and an almost full-time employee dealing with issues like payment processing, complaints, requests, etc.