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Formula for recovering cost of leased hardware

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Old 05-22-2004, 11:24 PM
systame systame is offline
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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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Old 05-23-2004, 02:04 AM
bqinternet bqinternet is offline
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We like to shoot for 6-12 months.

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Old 05-23-2004, 03:21 AM
amc-james amc-james is offline
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4 months here.

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Old 05-23-2004, 04:57 AM
boonchuan boonchuan is offline
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For us it is about 12 to 18 months.

Old 05-23-2004, 09:30 AM
systame systame is offline
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Join Date: May 2004
Location: Florida
Posts: 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.

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