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  1. #1
    Join Date
    May 2004
    Location
    Florida
    Posts
    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.
    sysTame(TM) internet services
    Xserve Web Hosting/Co-location
    WebObjects Hosting
    www.systame.com

  2. #2
    Join Date
    Feb 2002
    Location
    New York, NY
    Posts
    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/ ***

  3. #3
    Join Date
    Mar 2003
    Location
    Sioux Falls, SD
    Posts
    1,282
    4 months here.
    James Cornman
    365 Data Centers - AS19151/AS29838
    Colocation • Network Connectivity • Managed Infrastructure Services

  4. #4
    Join Date
    Mar 2004
    Location
    Singapore
    Posts
    6,990
    For us it is about 12 to 18 months.

  5. #5
    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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