Optimum hardware refresh cylces
A common decision regarding technology that companies face is how long to keep hardware assets: PCs, laptops, and small servers before replacing them with newer models?
Hardware refresh cycles can vary from anywhere between 12 months to 60 months. But what is the ideal timeframe to get the best efficiency out of the asset and remain within budget?
A study by Intel found the Total Cost of Ownership (TCO) of hardware actually increases after 3 years due to increased costs in service time, software/patch deployment, disposal cost recovery and out of warranty repair.
The study shows that a three-year desktop refresh cycle (with one-third of the machines being replaced each year) strikes the optimal TCO balance between hardware costs and increasing support costs for most companies.
Plus when equipment is leased (similar to a company vehicle) to enable 3 year refresh cycles, there are additional savings realised. Assuming a conservative 6-percent cost of capital, three-year leasing can save a corporation up to 20 percent over a five-year ownership basis.
