Myths About Servers That Almost Everyone Believes

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When you buy something that isnt disposable, you
own it for its useful life. Your goal is to get
the most out of it before you have to replace it.
A car is a great example. You buy it and plan to
drive it for as long as possible. It costs a lot
upfront and you need to recoup that cost, right?
But, how long before an old car becomes too
expensive to maintain compared to buying a new
one? Repair cost is the key variable for most
people to consider.
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You Get the Most Value From a Server, Use It as
Long as Possible
It's not absolutely true. It actually costs a
company more to keep existing servers instead of
refreshing them. A lot more. Companies who
refresh servers every 3 years have operating
costs 67 lower than companies who refresh their
servers every 5 years
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The Cost to Acquire and Deploy a New Server Is
More Than Just Keeping the Old One
The cost of operating a server in years 4-6
increases to 10 times the initial server
acquisition cost. The reason is because the
increasing costs are not linear and jump
significantly as a server ages past 3 years. In
fact, by year 6, a server requires 181 more
staff time and exerts a productivity cost of 447
more than in year 1.
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Upgrading Servers Is a Cash-Flow Drain
Its actually the opposite. Even when you factor
in the cost of acquisition and the cost of
deploying new servers, a company that refreshes
twice every 6 years instead of just once will
have a 33 lower net cash flow.
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It Takes Too Long to Realize the Benefits of
Refreshed Servers
Remember, the cost of a server starts to increase
rapidly in year 4. But, if you replaced it
instead, you would not incur those costs. The
cumulative benefits of user productivity time
savings, IT staff time savings, and IT
infrastructure cost savings pay for that new
server in less than a year. To be more precise,
it occurs in about 9 months.
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NEWER SERVERS HAVE NO IMPACT ON INCREASING REVENUE
This concept can be a little difficult to
understand without hearing from the companies
that increased their revenue. In these cases, the
greater agility, capacity, and shorter time to
delivery with the new servers helped them win
additional business.
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