To, Mart Doyle
From, Abhay Kshirsagar
Subject: Ruby on Rails
Exam 2
Our company will substantially increase the efficiency of our web developers by 50% and
increase the revenue by $22,875,000 by utilizing Ruby on Rails platform. Currently, our web developer
teams are overwhelmed with incoming projects. Switching to Ruby on Rails web development platform
will be an intelligent investment as it will allow web development twice as fast as our current process.
Ruby on Rails is an open source web application frame work, a faster and a time saving technology.
The process of coding and developing web applications on this platform is much faster than the other
framework because of its object-oriented nature and vast collections of open source code available. The
framework also makes it convenient as it has less coding and move between projects is easier. For instance,
currently, our teams are experiencing a lot of traffic of incoming projects. Ruby on Rails will allow our
web developers to complete the projects faster, and reuse the old project structures, which will increase
the productivity significantly.
By investing in Ruby on Rails our company will gain the net benefit of $22,875,000 over the
period of three years. Five web development teams will utilize Ruby on Rails for the start. Our company
will incur the total cost of $3,000,000 over the period of three years, which includes the cost of training
5 lead web developers (Refer Table #2). Implementing Ruby on Rails will increase our productivity by
50%; 30 projects will be completed per year instead of 15 projects. Our benefit over the period of three
years will be $25,875,000 (Refer Table #1). It is a viable opportunity for our company to increase the
productivity and revenue significantly.
Table #1
Total
Revenue
Projects
per year
Before Ruby on
Rails
15
After Ruby on
Rails
30
No. of
No. of
Total
Revenue
Basic
Lead
Developers
Developers
With
Revenue
revenue
generated
generated
by
for each
project
45 *
$10,000
5* $25000
45 *
$10,000
5*25000
Total
Revenue in
3 years
$8625000
$25,875,000
$17,250,000 $51,750,000
Benefit = $51,75,0000 - $25,875,000 = $25,875,000
Table #2
Costs
Year 1
Year 2
Year 3
Total Cost in
3 years
Lead Web
Developer
Training Cost
Licensing Cost
Total
$200,000 * 5
$200,000 * 5
$200,000 * 5
$0
$0
$0
$1000000
$1000000
$1000000
Net Benefit = $25,875,000 - $300000 = $22,875,000
$3,000,000
References
Morini, Tom. "Here's Why Ruby On Rails Is Hot." Web. <http://www.businessinsider.com/heres-whyruby-on-rails-is-hot-2011-5>.
"Learning Rails." Building Web Apps. Web. <http://www.buildingwebapps.com/transcript/79326-whyyou-should-learn-ruby-on>.
"Ruby on Rails." Web. <http://www.bitzesty.com/blog/2014/7/ruby-on-rails-what-it-is-and-why-we-useit-for-web-applications>.