[rescue] Oh no! This poor Origin server.....

[Lionel Peterson]

> From: "Jonathan C. Patschke" <jp at celestrion.net>
> Date: 2004/04/01 Thu PM 08:54:30 GMT
> To: The Rescue List <rescue at sunhelp.org>
> Subject: Re: [rescue] Oh no! This poor Origin server.....
> 
> On Thu, 1 Apr 2004, Bill Bradford wrote:
> 
> > Of course, there's the "its two or more years old, its
> > depreciated off the books, get rid of it" mentality
> 
> Now, that I don't get, either.  Is the depreciation -that-
> -much- of a tax write-off that it offsets the costs of
> buying new equipment?

The depreciation alone is not the deciding factor, but add in support costs (typically included with new hardware for a certain period of time), software licenses, etc. and it becomes a reasonable decision.

The idea is that by replacing 5 dual 400 MHz processor Ultra 2 systems with one dual 1,000 MHz processor system can cut your Oracle software license costs in half (ten CPU license to two CPU license)... Things like that tip the scale, as I understand it.

The depreciation is the total hardware cost comes off the taxable amount (a $3,000 machine = $1,000 real reduction in taxes for an imaginary 33 1/3% tax rate).

NOW, Ssqueeze the hardware vendor for a better price on the replacement hardware, and the new hardware can get quite cheap...