• David Moore

The bad economics of keeping old computers



Microsoft recently published a study in Australia and New Zealand about the cost of trying to keep old computers running in a business.

Here it is...

True cost of not replacing computers - more than $4,000 each: Microsoft Old computers are costing business owners more than NZD$4,000 each (US$2,736) according to a new study released by Microsoft. The research shows that most small and medium businesses (SMBs) could make significant cost savings just by updating their PCs, but that most continue to hang on to older computers. https://www.cio.co.nz/article/648059/true-cost-replacing-computers-more-than-4-000-each-microsoft/

You may be immediately suspicious because Microsoft has a vested interested in you/us spending money on computers.

And that is fair. But let me tell you, I've lived this for over 30 years.

Slow, old computers simply don't make sense in a business context.

Here's a personal and real example from about 1989...


So by "do the math" I mean I added up what proportion of my time out of my annual work week I spent waiting for the computer.

For example, and using modern numbers and a guess at an average salary, it may look like this:

  • Annual salary $70,000

  • Work week - 40 hours

  • Time per day waiting for or doing battle with an old computer - 1 hour i.e 5 hours per week

  • 5 hours is 1/8th of your weekly working hours.

  • 1/8th of your annual salary is $8750.

  • That equates to 3 very good computers.

Do you still think hanging on to that old menace is a good idea?

Have fun,

David

#computer #obsolete #cost #fixvsreplace #buyingadvice #microsoft #oldPCs #advice #economics

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