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  #1  
Old 09-30-2003, 10:58 AM
RogelioH RogelioH is offline
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Question

Leasing From dell?


Hi,

I am just wondering if you all find it worth it leasing a nice dual xeon from dell maybe 30-50/mo for 2 years etc?

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  #2  
Old 09-30-2003, 11:50 AM
beachtrader beachtrader is offline
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We use Dell servers and are very happy with them.

Assuming you have decided to run your own equipment rather than renting from a datacenter the real question to be answered is not so much on the technical side but on the financial...

Do you want to spend the $ and purchase now and maybe take the deduction in full against your income (if you have less than $25k in asset deductions this year--further assuming you are in the US otherwise forget it) or lease and take the deduction over time. Of course depending on the server you purchase you might have warranty issues (if you get a lesser warranty than the leasing). And with leasing (and no purchase at the end of the term) you will have no assets. Purchase will give you an asset for the same amount of $ over time.

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  #3  
Old 09-30-2003, 02:06 PM
RogelioH RogelioH is offline
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Hi,

Thank you for the great post, what i really want to do is purchase but with low monthly payments. What servers do you recommend from dell? Would you recommend dell or any other providers that do this?

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  #4  
Old 09-30-2003, 02:28 PM
beachtrader beachtrader is offline
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Well, I think you can get leasing options from most major manufacturers. I only have experience with Dell. However, if I were to look for an alternative provider I would look at IBM eServers.

As for Dell servers it depends. If you don't need a rackmount server don't bother looking at them. You pay a premium for small space compared to other offerings. Also you probably don't need to look at the Tower Servers as they are also generally a premium for probably what you need. That being said, go the small business section and look at the 400SC, 600SC and 1600SC servers.

These servers are the mid-tower servers with CPUs ranging from a Celeron to 3.06 Ghz 1 MB cache Dual Xeons. It really depends on what you need the server for to decide what you want. If you want an entry level server for hosting which will handle a good load check out the 400SC. It uses IDE drives and you can get it pretty cheap. The next step up is the 600SC which uses a better quality motherboard and has higher processing power. The 1600SC is the dual Xeon model with SCSI drives.

One item to note is that Dell constantly runs sales--right now you can get a processor upgrade if you purchase. About a month ago you could have gotten a Hyper-Thread 3.06 GHz in a 400SC for about $400.00. This week they are offering an upgrade to the next higher processor. Next week? Who knows, you have to check all the time for deals.

The other item to note is that don't get memory from Dell. You can pick up the same memory from Crucial.com for 1/2 the price. Of course you can't finance through them, but its the same memory at 1/2 the cost.

While we are on add-ons, you might want to also pick up a IDE drive from another source. If you check the deals I think Office Depot has an 80GB on sale this week for $100.00. If you can find a coupon for $20.00 off a $100.00 sale and then get the rebate for the drive you can get a Western Digital 80GB drive for $50.00. This is about $180.00 less than Dell. Of course you have to put the drive in yourself, but that is just a matter of plugging it in (literally).

These are just some ways to save $$ but still get some quality.

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  #5  
Old 09-30-2003, 04:53 PM
RogelioH RogelioH is offline
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Hi,

Thank you for the great post again, well the only thing thats attracting me to dell is their custom low payment monthly plans. I really dont like towers for hosting and i was looking at colomachines.com , but the truth is that i cant afford it yet. Would you recommend any other companies with easy payment plans that do rent2 own or something, because am sure i can cancel those payment within 2 months because i dont like to be in debt.

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  #6  
Old 09-30-2003, 05:16 PM
neonlexx neonlexx is offline
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colomachines are pure junk. I wouldn't host my grandmothers one page 2 lines of html site on those things.....

You can get a Dell Power Edge 1750 for fairly cheap from dell, payment wise. Although you might be more inclinded to get a to use a business credit card, they generally have a higher acceptance rate, lower interest and benefits.

Be sure that you can financial afford this. A lot of times after 30 days you are STUCK and cannot cancel. These programs are generally geared towards larger companies and the rates shown are not always accurate, they depend on your credit or your company's credit.

If you don't like being in debt, this is not a very good idea since these loans usually last 3-6 years, depending on the payments. This stays true no matter what vendor that you use.

If you lease from another source, I'd be sure of quality. Comparing dell with other pc makers is apples and oranges, they are of a higher quality.

  #7  
Old 09-30-2003, 05:23 PM
RogelioH RogelioH is offline
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Hi neonlexx,

Thank you for your input, i know of some people that use colomachines and its actually holding up pretty great for its price. Yes i can definately afford any of those monthly payments, its just that currently i dont have access to a bulk amount of cash. I will be looking into the dell power edge since this is for a bit of higher quality hosting etc.

thank you.

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  #8  
Old 09-30-2003, 05:26 PM
VapoRub VapoRub is offline
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Not everyone qualify for the low rates. check with dell.

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  #9  
Old 09-30-2003, 07:11 PM
RogelioH RogelioH is offline
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I just called dell and tell me that am approved with no problems, but not sure if leasing would be the best move since am calculating the figures now.

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  #10  
Old 09-30-2003, 07:15 PM
neonlexx neonlexx is offline
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If you do the math, their interest is pretty high. My personal CC has lower rates.

  #11  
Old 10-01-2003, 02:11 PM
centrahost centrahost is offline
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I get lower rates on credit cards as well. I leased from Dell for 3 years and then started buying CaliforniaDigital servers. We are very very happy with them!

  #12  
Old 10-01-2003, 02:16 PM
Aussie Bob Aussie Bob is offline
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Quote:
Originally posted by RogelioH
I just called dell and tell me that am approved with no problems, but not sure if leasing would be the best move since am calculating the figures now.
I imagine you're thinking of coloing these servers. Make sure you have an ample supply of parts onhand. I couldn't imagine waiting for a faulty part to be replaced by the server supplier, no matter how quick they claim to replace hardware.

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  #13  
Old 10-01-2003, 03:33 PM
centrahost centrahost is offline
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Quote:
Originally posted by Aussie Bob
I imagine you're thinking of coloing these servers. Make sure you have an ample supply of parts onhand. I couldn't imagine waiting for a faulty part to be replaced by the server supplier, no matter how quick they claim to replace hardware.
Bob is right on! DELL could care less. One of the best reasons to use a smaller company. We paid them for 24 hr. on site parts and service and waited for 3 days for a motherboard about 3 years ago.

  #14  
Old 10-01-2003, 10:47 PM
neonlexx neonlexx is offline
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Compare the amount of failures that a Dell has compared to a generic server.

  #15  
Old 10-02-2003, 11:51 AM
beachtrader beachtrader is offline
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Well, I wouldn't say Dell could care less, but the bigger any corporation gets typically the less customer service you get. This is simply because the customer is more a number rather than the livelihood of a small business. And a big business can afford to lose lots of customers with no impact on their business. A small business can't, hence better customer service.

Overall, I don't think it is a bad mistake to go with Dell. My $42.50 (two cents after inflation...)

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