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Jul 20
2010
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False economy no. 2 - spending moneyPosted by: Malcolm Newdick Categorised in: IT infrastructure , Business News
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Did you know that you can now rent software licences from Microsoft instead of purchasing them? Renting often seems like a bad idea - cheap over the short term but expensive over the long term. But we're discovering that rental can make good sense for Riverbank clients.
Take a Microsoft server licence as an example. What we are finding is that over three years the software rental costs are tending to be slightly lower than the price of purchasing the licence. The crossover happens in year four. Given a server life expectancy of around four years it's a hard call to say which is better. But by renting you also avoid the cost of the initial cash investment - and in these post-credit-crunch days that's worth quite a lot.
So if you are thinking about replacement servers think about renting.
There is plenty of hype around cloud computing, but are companies actually doing it? Many large firms are apparently holding back from making a drastic change to their IT systems, preferring to wait until others have gone before them and made their mistakes. Many smaller businesses are hesitant about making their entire business dependent on a single Internet connection. They are also worried about security – why would they place their intellectual property in an environment where they have little or no control?
Netbooks were last year’s revolution. With seven to ten inch screens these low-powered computers were designed to give you access to all the world’s information – the Internet. But that didn’t really happen. 