Page 278 - Big Data Analytics for Connected Vehicles and Smart Cities

258 Big Data Analytics for Connected Vehicles and Smart Cities Benefit and Cost Estimation For Smart City Transportation Services 259

Strategic business models and partnering, like intelligent sensor–based
infrastructure, is assumed to be an enabling service that does not deliver direct
value in terms of benefits. These services are essential to the delivery of the other
services but do not provide direct tangible benefits. It has been assumed that
support and administration relating to strategic business models and partner-
ing will be a proportion of the total cost of those services that provide direct
benefits. A best estimate of 1% of total cost is been assumed. Table 11.17 sum-
marizes the cost of the direct benefit services. This includes the contingency of
10% to address the high-level nature of the cost estimates.
Transportation governance is treated in a similar manner to strategic busi-
ness models and partnering. It is assumed that administration and support for
transportation governance will represent 1% of the total cost of the direct ben-
efit services.
For urban analytics, it is assumed that the total cost of ownership of each
terabyte of data to be stored and managed will be $12,000 USD per year [8].
This includes a complete menu of cost items including hardware depreciation,
software purchase or depreciation, maintenance, storage management labor,
power consumption, system monitoring, and the cost of procurement [8]. The
number of terabytes to be managed by the system is assumed to be 1 TB per
day. This aligns with the San Diego Association of Governments experience
with its Integrated Corridor Management Project [20]. A design life of seven
years is assumed, aligning with the same assumption for other back-office hard-
ware and software in this chapter.

11.9 Smart City Transportation Service Cost Summary

Table 11.20 is based on the calculations illustrated in Section 11.8 and captures
the annual life-cycle cost in terms of amortized capital investment and annual
operating cost for each of the smart city transportation services. As discussed
previously, most of the services deliver direct benefits, while some of the services
(e.g., strategic business models and partnering and transportation governance)
act as enablers to the direct benefit services. These services do not deliver direct
benefits. The enabling services have been treated separately at the bottom of
Table 11.20. A 10% contingency has been added to the enabler cost estimates
in addition to the 10% contingency added to the direct benefit services earlier.

11.10 Estimated Benefits for Smart City Transportation Services

Estimated benefits for smart city transportation services that provide direct ben-
efit were developed as shown in Tables 11.25–11.35, representing each smart