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Decision Tree Analysis

Decision tree analysis for IT project where the data center is updated with new equipment such as 20-30 web and storage servers (IBM), 8-10 switches, 4 enterprise grade routers, and couple firewalls (Cisco), and few rows of server racks. There are three decision choices. One is to go ahead with renewal and purchase of all the equipment, the second option is not to perform any updates to the data center and leave everything as it is, and third option is buying new parts (hard drives, memory, power supplies, router and switch modules) for existing equipment to improve performance. Please come up with reasonable numbers for all the equipment (prices can be easily found on the Internet) and any other calculations concerning this project, to be used in decision tree analysis.

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Here is the problem. I had to add more content to your problem in order to make it more realistic.

Decision tree analysis for IT project where the data center is updated with new equipment. There are three decision choices. One is to go ahead with renewal and purchase of all the equipment, the second option is not to perform any updates to the data center and leave everything as it is, and third ...

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The solution explains the concepts very well using the example in the question. All the steps are clearly explained and outlined. The answer is very easy to understand and can be followed along with anyone who has a basic understanding of the subject. Overall, an excellent response to the question.

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