Ottawa County staff: data-center consolidation now estimated at $2.29 million due to tariffs, VMware subscription costs

Paul Rosemond, a county staff member who presented the project at an Ottawa County IT workshop, told commissioners the county plans to consolidate two data centers — one in Fillmore and a smaller site in Grand Haven — and refresh the equipment that supports file stores and virtual servers. Rosemond said the updated budgetary estimate is about $2,286,000, an increase from a previously approved FY23 capital improvement project budget of roughly $1,200,000.

Why it matters: The estimated increase would require changes to the county’s Capital Improvement Plan (CIP) funding and could require a budget amendment or reallocations from other CIP projects or fund balance. Rosemond said the county must act soon because support for current VMware licenses ends at the end of the month, creating an operational risk for county systems.

Rosemond said the cost growth stems from two main changes: a 25% tariff applied to equipment assembled in Mexico and a switch from perpetual VMware licenses to subscription pricing after Broadcom’s acquisition of VMware. “We need to replace it… we’re at risk,” Rosemond said, summarizing the immediacy of the support and security issue.

Details from the presentation and discussion: - Infrastructure and scope: Rosemond…