The Financial Impact of the Defense Message System (DMS) on NTCC Monterey and its Subscribers

Abstract

The Defense Message System (DMS) is the target communications architecture destined to replace the Automatic Digital Network (AUTODIN). Designed to permit message delivery between office workstations, this system provides DMS managers with the opportunity to cut electronic communication costs and realign assets within a geographical area. This thesis overlays the planned DMS architecture on the Naval Telecommunications Center (NTCC) Monterey, California, and analyzes the economic impact of DMS on the center and the 17 subscribers it serves. Using a five-year projection and net present value theory, it demonstrates a cost avoidance of $492,899 if the communications center undergoes an equipment upgrade and a $1,865,631 avoidance if the NTCC is closed.