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05-22-2004, 11:24 PM #1Junior Guru Wannabe
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- May 2004
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- Florida
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- 83
Formula for recovering cost of leased hardware
For those of you that lease servers, just wondering how quickly you try to recover the cost? 18, 24, 36 months?
I'm guessing if you try to recover too quickly it'd make more sense for the client to buy. Too slowly and the hardware becomes obsolete.
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05-23-2004, 02:04 AM #2Backup Guru
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- Feb 2002
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- New York, NY
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- 4,618
We like to shoot for 6-12 months.
Scott Burns, President
BQ Internet Corporation
Remote Rsync and FTP backup solutions
*** http://www.bqbackup.com/ ***
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05-23-2004, 03:21 AM #3Web Hosting Master
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- Mar 2003
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- Sioux Falls, SD
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- 1,282
4 months here.
James Cornman
365 Data Centers - AS19151/AS29838
Colocation • Network Connectivity • Managed Infrastructure Services
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05-23-2004, 04:57 AM #4Retired Moderator
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- Mar 2004
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- Singapore
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- 6,990
For us it is about 12 to 18 months.
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05-23-2004, 09:30 AM #5Junior Guru Wannabe
- Join Date
- May 2004
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- Florida
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- 83
So, for a leased server would you calculate the price to the customer like this for 18 months:
` server cost / 18
+ bandwidth cost per month
+ rackspace cost per month
+ profit
------
= price
And what percentage markup for profit over cost would you suggest?
Would you increase the recovery period for higher-cost gear.Last edited by systame; 05-23-2004 at 09:37 AM.