What a Vista Upgrade Will Really Cost You
narramissic writes, "James Gaskin wrote an interesting article this week about what he recons it will really cost organizations to upgrade to Vista. Gaskin estimates that each Vista user will 'cost your company between $3,250 and $5,000. That's each and every Vista user. Money will go to Microsoft for Vista and Office 2007, to hardware vendors for new PCs and components, and possibly a few bucks to Apple for those users jumping to a Mac.'" Any sense of how realistic those figures are?
Most of the hardware costs would be there anyway as part of a normal IT refresh cycle. So I call BS.
-nB
whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
Does Windows Vista no longer support Office 2000? Why not update all your networking cable to fiber, while you are at it?
Why the heck do you need to upgrade everything at once?
Help! I'm a slashdot refugee.
$2000: New Hardware
$ 900: Vista License
$2100: Solid Gold Mouse
Strange times indeed when the stock market analysts hope a new Microsoft operating system will counteract the declining housing market, but that's the hope of some for next fall. If your company plans to play the Vista game, start cooking your books now.
.com.
I estimate each Vista user will cost your company between $3,250 and $5,000. That's each and every Vista user. Money will go to Microsoft for Vista and Office 2007, to hardware vendors for new PCs and components, and possibly a few bucks to Apple for those users jumping to a Mac. After all, if Apple's higher cost has been the factor keeping your company from trying a Mac, that factor just washed away.
Why $3,250-$5,000? Here's my calculation. Feel free to tell me what your company has budgeted, and whether you believe your own numbers.
New PCs will cost $1,500-$2,000. Darn few existing corporate PCs will have the video horsepower needed to run Aero, Vista's primary upgrade inducement. You need 256MB of video RAM to run Aero properly, no matter what Microsoft's marketing says. I don't know of any motherboard-based video chip sets that include 256MB of RAM. Upgrade? While in the PC, add memory: Vista needs a minimum of 1GB of RAM. The hardware cost of the RAM may be less than your labor costs getting that installed in every PC. If your exiting PCs can take full advantage of Vista, I'm happy for you. I don't believe you, but I hope your upgrade goes well.
Depending on your volume purchasing agreements, new copies of Vista and Office will total between $750 and $1,000. After all, your company always buys the "professional" packages, right? And they have to be installed, right? If you're getting a much cheaper quote on both packages installed and tested, let me know.
The real value of Vista and Office 2007 includes new collaboration services. This means new back end servers. Most estimates place the back end support cost at $2,000 per user, but I used a range of $1,000-$2,000 for my calculations. Why get Office 2007 if not new SharePoint and Exchange servers? Can you run both on one box? Didn't think so.
Document your objections now, because next year the vice presidents will blame IT for their busted budget. But the housing market appreciates you taking up the slack. James E. Gaskin writes books (16 so far), articles and jokes about technology and real life from his home office in the Dallas area. Gaskin has been helping small and medium sized businesses use technology intelligently since 1986. Write him at mailto: james.gaskin@itworld
body massage!
I doubt all the computers have been there as long as XP has. There's got to be quite a few that are only a year or two old. Those ones should be able to handle Vista. Ones that are even 3 years old should be okay as long as Aero/Glass is turned off. And hey, it's cheaper to just upgrade the RAM in the computers they have (which is probably the main thing that'd need to be upgraded) than to go buy a bunch of brand-spankin'-new computers.
look! it's a bird, it's a plane, it's....a girl? yes, a girl browsing Slashdot on Linux
Or more than 640K of memory - that should be enough for anyone :)
A fine is a tax you pay for doing wrong and a tax is a fine you pay for doing all right.
Sounds to me as realistic as the numbers in this story.
OK, some details.
Um, no, they won't. A new computer *without* corporate discounts is 25%-30% of that.
Methinks this person knows not what he speaks of. My "corporate" computer is more powerful than my (admittedly older) gaming PC.
Is this guy serious? The "primary" upgrade inducment is looks? I bet he doesn't have a girlfriend...
Vista, for better or worse, has quite a bit more to offer than just "looks".
So, i should believe this guy more than MS. Granted MS has a stake in saying it needs less, but this guy seems to have it in for MS just the same.
Even if that was true, why does that affect corporate PCs, which are usually higher quality.
Actually, if we're talking corporate, upgrades are rarely done for a variety of reasons.
I assumed this meant "existing". Exiting is a different word, having nearly the opposite meaning.
And sarcasm? *This* is an article?
The rest of the "article" is worse FUD than MS puts out.
Have you read my journal today?
The cost needs to be broken down into:
1) Hardware upgrades that would have happened anyways. Apply the "Microsoft Tax" and cost of supporting Vista -or- the manpower cost to install XP to the vista-upgrade cost, leave the rest segregated.
2) Application Software upgradest that would have happened anyways, or that would have happened but for the fact the new software requires Vista
3) The cost of upgrading vista, including supporting Vista, training end-users, license fees, Microsoft Tax on new computers if tax is above license fee for the version of XP you were using, and for companies NOT upgrading, the manpower involved to "downgrade" from Vista to XP.
Yes, that's right, "upgrading" to Microsoft will cost you manpower for every new MS-license-equipped PC even if you stick with XP. Happy Happy Joy Joy.
Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
What organization upgrades Office and Windows at the same time? Are the older versions of Office not going to run on Vista or am I missing something? Last I was in charge of tech support, even though our University contract got us the latest software cheap (from a departmental perspective), we were always very leery about deploying one piece of new software. Deploying two new pieces of software at or near the same time sounds like you're asking for trouble. I could see that firgure being accurate in such a case because of the sheer amount of tech support you're wishing upon yourselves.
Sign me up for that company! As resident IT guy here, I usually buy boxes for $400 and spend an extra $50-100, depending on current market value, to upgrade the RAM. Depending on the user, another $50 to give them a Geforce 6200 w/ dual monitor outputs. And these systems are nothing to sneeze at. As long as you ensure the hard drive in the computer is up to snuff and it has enough RAM, most people can't tell the difference between processors.
Even if I wasn't a budget oriented IT guy, I sure couldn't justify spending $1500-2000 on a system. For that everyone better be getting hotrod laptops w/ 17" widescreen displays.
Wise men say, "Forgiveness is divine, but never pay full price for late pizza."
Why on earth would companies upgrade all of their systems to Vista if it requires them to upgrade the hardware? Vista in itself has no real advantage over XP for corporate use, so the only machines running Vista in the workplace will be the ones that came with it pre-installed.
You don't necessarily need new Hardware, unless you want to take Full Adantage of Vista. If you don't want to use Superfetch / ReadyBoost, you don't need 2.0 USB. If you don't want Media Center capabilities, don't buy a TV Capture card. If you don't want Aero, don't buy a Video Card. Vista works in my Virtual image, and it sure as hell doesn't have a 256 Mb Video Card emulation in it.
Come on, people. Sheesh.. If it works in my VM Ware image, it will work with old hardware..
I switched to Mac in March, and after a few Windows-only tool withdrawls, I must say I am doing fine and will never switch back. I'm tired of the weak security and exploits. Using Windows started to feel like walking down a dark alley in a bad neighborhood at night. When you feel like you have to continually watch your OS to make sure it's doing the right thing, in my op it's time to get a new OS. So I did.
That's not to say Mac is perfect and I'm sure the time will come when security will become a more focused concern for Mac users, but I have faith (oddly) that Apple will see this coming, remember what mistakes MS made (and will no doubt continue to make), and adjust accordingly.
And if I'm wrong, there's always Linux
R(k)
Remember how long it took to get rid of NT4/98? Lots of people are still using 2k, and XP has been out longer than other desktop releases. XP is going to be around for a long time.
If the move to Vista is stretched out over a number of years, much of the cost will be absorbed by normal new hardware spending, and I don't see XP becomming rare until the next decade.
I rarely criticize things I don't care about.
good point, but I'd say that current word processing, email, web browsing and spreadsheeting technologies are at a point where tossing more hardware at them makes no discernable difference after about a gig of ram and a one gigaherz processor. Number crunching, Image and movie manipulation is an other matter. Most offices don't do those things.
The main problem is that the author assumes that to upgrade to Vista means you have to use Aero. Microsoft has made it very, very clear that Vista is supposed to scale up as new hardware is released, but it will still run fine on most PC purchased recently. I'm running it fine on a PC and a laptop that are both 2+ years old here in office. Plus, if a company is going to be running 3+ year old PCs, well, I'm going to go out on a limb and say that they aren't the type of company that upgrades operating systems on their desktops all that frequently either.
FTA:"Why get Office 2007 if not new SharePoint and Exchange servers? Can you run both on one box? Didn't think so."
MS and the MS-kateers really pushed Sharepoint at work like it was the greatest thing since the wheel. It did nothing for me, and I really didn't see the point (a few small end-user hand-holding convieniences and the usual glazed-over security problems, but that really seemed to be the extent of it), but it was *FREE* . Just like that first hit of crack, sans the high, but complete with the addiction and heavy hidden future costs. The curious thing is the MSkateers, when asked about security, just say "Its secure", after they give you the usual nasty attitude.
*sigh*
I'm almost to the point of keel-hauling vendor reps on a parking lot who give you free stuff to get you hooked. Dell gave us a blade server with one blade, in the hopes of us filling the rest of the slots. We won't put anything on that box, because of Dell's disasterous server track record (100% rate of failiure of some component withing the first three months, 0% for everybody else). Its hard to tell a CFO you have to say 'no' to this new free thing that looks to have some kind of value, and then get money for important projects in the future.
"We are all geniuses when we dream"
- E.M. Cioran
New PCs will cost $1,500-$2,000. Darn few existing corporate PCs will have the video horsepower needed to run Aero, Vista's primary upgrade inducement. You need 256MB of video RAM to run Aero properly, no matter what Microsoft's marketing says. I don't know of any motherboard-based video chip sets that include 256MB of RAM. Upgrade? While in the PC, add memory: Vista needs a minimum of 1GB of RAM. The hardware cost of the RAM may be less than your labor costs getting that installed in every PC. If your exiting PCs can take full advantage of Vista, I'm happy for you. I don't believe you, but I hope your upgrade goes well.
Now, Vista is a trainwreck, but unless there is some gigantic inexplicable performance disaster between current versions and the released build, the above is very much in the 'obvious fabricated attention-grabbing FUD' area of truthiness. Given that Vista works fine without with 128Mb video RAM and 512Mb system RAM, the argument above boils down to 'Hi guys, I need hits on my articles so I'm going to make preposterous claims and get linked to!'
If I were spreading Vista FUD, I'd focus on the much more difficult question of 'what will it actually do for you? Specifically, what does it do that Win2k doesn't?' Sadly, the main answer is 'Well, Microsoft will make sure that new stuff doesn't run on Win2k'.
Whence? Hence. Whither? Thither.
New PCs will cost $1,500-$2,000.
He assumes none of us have Vista ready PC-s (512 RAM or more, DirectX9 card optional).
Even if we ignore this very important flaw, a Vista basic ready machine from dell is sub $600. Including a laptop. I bought one myself a month ago, and it has 512 RAM and is Vista ready. Very decent machine for the money.
Add maximum $100-$150 for a DirectX9 card (Aero Glass), and you have a full blown Vista desktop for sub $750.
Depending on your volume purchasing agreements, new copies of Vista and Office will total between $750 and $1,000.
Existing Office versions work just fine in Vista. Many people use Office 97 in XP.
Also "depending on your volume purchases" is quite a stretch. Notice the prices of Office and Vista (the corporate editions) and you're looking into more like sub $500 for both, if you're that keen on the new Office, that is.
Office Pro 2007 upgrade is $320-ish. And most people don't need Pro, they need the basic Word/Excel/PowerPoint pack. Upgrade: $239.
Vista Business upgrade is somewhere in those figures too, so sub $500 for all goodies, and sub $250 for Vista.
The real value of Vista and Office 2007 includes new collaboration services. This means new back end servers. Most estimates place the back end support cost at $2,000 per user, but I used a range of $1,000-$2,000 for my calculations. Why get Office 2007 if not new SharePoint and Exchange servers?
Again he presumes we need Office 2007, while his heading says "Vista" upgrade: misleading. If the back end is good for your business, good enough to outweight the cost, the cost doesn't matter.
If it doesn't, then you don't buy it, simple as that.
----------
Totals:
Vista upgrade only - ~$250
Vista + Office upgrade - ~$500
Vista + Office + PC upgrade if outdated hardware (avg) - ~$750 (pessimistic: $1000)
Comment removed based on user account deletion
That is until you put Vista on it.
I tried RC1 over the weekend. With a 2 ghz processor and 1 gb RAM, at Idle I was pushing 70% physical RAM usage and a constant 10% load on the processor. I wrestled with Neverwinter Nights till it ran and the graphics lag was unbearable, not unplayable, but when it runs qwuite smoothly on the same system with XP or 2K3 server, there is an issue.
You say you want a revolution....
Aero is not required on corporate PCs so scratch the video upgrade. We deployed Windows XP with the dummied-down Windows 2000 interface and expect to do the same with Vista. We do allow users to change to the Fisher-Price UI if they like, though.
Corporate customers don't pay between $750 and $1k for Office - our enterprise licensing for Microsoft products (which includes the OS, Office Professional and Server and Exchange CALs) runs about $200 per PC per year.
we see things not as as they are, but as we are.
-- anais nin
Yeah, but look at the benefits you get - a spiffy new CPU hogging GUI and tons of great new DRM!
[Insert pithy quote here]
For all that Microsoft does to make our life harder, they create more jobs for everybody supporting windows. In a strange way, windoze sucking as bad over the years has spawned whole industries that would not be around probably if we had a rock solid OS.
Why $3,250-$5,000? Here's my calculation.
And here is why he is wrong:
New PCs will cost $1,500-$2,000.
Darn few existing corporate PCs will have the video horsepower needed to run Aero, Vista's primary upgrade inducement.
Depending on your volume purchasing agreements, new copies of Vista and Office will total between $750 and $1,000. After all, your company always buys the "professional" packages, right? And they have to be installed, right? If you're getting a much cheaper quote on both packages installed and tested, let me know.
The real value of Vista and Office 2007 includes new collaboration services. This means new back end servers. Most estimates place the back end support cost at $2,000 per user, but I used a range of $1,000-$2,000 for my calculations. Why get Office 2007 if not new SharePoint and Exchange servers? Can you run both on one box? Didn't think so.
The items the guy completely missed is training costs, deployment costs, and business process changes. Those will wind up costing the organization just as much, if not more than the licensing costs. The cost IS higher than licensing alone, but not to the extent that this guy claims, nor for the reasons he expects.
-Rick
"Most people in the U.S. wouldn't know they live in a tyrannical state if it walked up and grabbed their junk." - MyFirs
Playing games?
Seriously, when I was writing simple C programs on an 8088, that was suuuuper slow and an upgrade shaved about an hour of compile time a day. For programming, I chose an extra monitor over a dual core box. Long gone are the days of starting the compile and finishing the cup of coffee before its done.
Here's what I see happening:
Small businesses will delay their upgrades until they absolutely have to get off XP/2000 server/2003 server. The small businesses that I've done contract work all own their machines, they don't lease. They upgrade as much as possible until it no longer makes sense. Many are still using P2's and P3's loaded with as much RAM as possible to be able to run XP smoothly. Because their current environment simply works, there's no rush to upgrade.
Medium sized businesses may test the waters, but will ultimately delay upgrades until their leases are up on the current batch of PC's. As lease refreshes begin, Vista will roll in, creating a support headache as techs now have another platform to learn and keep track of. They'll eventually get over to Vista, but it'll take a couple of years.
Large businesses may follow the same pattern as medium sized business clients and upgrade with lease refreshes. Having two platforms to support isn't much of a problem as they can usually afford to get their techs up to speed quickly and some may even dedicate a group to Vista support.
I don't see many businesses running out to buy new machines just for Vista. In fact, I see the opposite; very few will. They'll just get Vista with new PCs during lease refresh cycles.
Fifty watts per channel, baby cakes.
Of course, the average cost of a good developer, total to the company, is around $60-90 per hour. That's $500-750 per day. If having the latest hardware around makes them even slightly more productive, or gives them a reason to work an extra hour per week (not day, week), that pays for a new, kick-ass system every six months or so -- and that's assuming that you just shred the old hardware.
You're special forces then? That's great! I just love your olympics!
from 2000. Then again, it was totally worth it. We basically did the same as we did moving people to Mac OS X - hunt down groups of users and spend a lot of time migrating. But the increase in stability and capability it added really made up for a lot of this.
Now, this isn't to say I agree with the figures. I haven't seen them, yet. With 2000->XP and OS9->OSX, there typically weren't hardware upgrades required. It was mostly technician time. But there was a cost, and it's not inconsequential.
There exists no way of exchanging information without making judgments. --Bene Gesserit Axiom
So you pay, at a minimum, $600 for that copy of Office. The only way that SA would cost you less is if you upgrade Office every 2 years or less. And exactly how much money would you spend to stay on *that* upgrade treadmill? Why would you even *want* to do that, even if the software were "free"?
Linux IT Consulting and Domino Development in Michigan
There you go applying 'logic' to 'business decisions' ;-) Some people just never learn! (the others go into mgmt!)
My biggest peeve is a lack of development focused PCs, we're saddled with the 'standard' footprint that everybody gets. I don't want email, or office or anything else non development related on my dev box. All developers should get 2 machines - 1 cookie-cutter footprint for mundane office stuff, and one completely unshackled and free dev box (on a separate dirty LAN).
The amount of productivity lost to such 'decisions' boggles the mind....
People in cars cause accidents....accidents in cars cause people
Vista seems to do that to a bunch of people. I downloaded it when they released the beta to the public a few months ago. It proceeded to set my system clock 40 years ahead, rendering the Vista install worthless and unable to be accessed. I deleted that partition and went to Ubuntu because of my disgust with the M$ response. Their answer was basically, "Bummer, it's a beta." I had changed the clock back through the bios, but once the licensure for the beta had "expired" according to the system, there was nothing I could do with it. I have been a happy ubuntu camper ever since. The only thing Ubuntu can't do that my Windows instances could is view newer flash sites. My wife was skeptical at first, as she didn't see all of the clutter that was once there in Windows and couldn't immediately find her files. She quickly warmed to it and doesn't have any desire to use Windows now. It is a simple OS that the average user wouldn't be able to differentiate between.
Microsoft keeps users because (among many reasons) their software's interface is consistent and familiar. I can't imagine they break that with Vista.
I really hope you aren't suggesting that the differences between Vista vs. XP are similar to Vista vs. Linux.
"Ask not what your country can do for you." --John F. Kennedy
The last $100 is for the MousterCable.
Help poke pirates in the eyepatch, arr.
you did not do the XP transition in a corperate environment. Support desk calls went up 60% the day we rolled out XP and office 2003. useability is very different if you do not change XP's default behaivoir back to 2000 style as most people do.
remember, most corperate users have the IQ of a small box of rocks and they absolutely freak when things change. XP was a dramatic enough change we had to schedule training for most of the sales and marketing staff.
and do not get me started on office 2003. incompatability with many office 200 documents, things that used to work dont anymore, etc...
So yes, the amount of money we spent on training staff for XP last year would be very close to the expense to train them on osX or linux.
Do not look at laser with remaining good eye.
>>Aero is not required on corporate PCs so scratch the video upgrade. We deployed Windows XP with the dummied-down Windows 2000 interface and expect to do the same with Vista. We do allow users to change to the Fisher-Price UI if they like, though.
>>Corporate customers don't pay between $750 and $1k for Office - our enterprise licensing for Microsoft products (which includes the OS, Office Professional and Server and Exchange CALs) runs about $200 per PC per year.
Exactly right. Our first XP PRO PC was a Pentium 200MHZ, which ran XP PRO just fine with all the UI bells turned off. All it needed was extra memory to be usefull. This was my PC.
Prior to installing XP, we bought XP and used the backrev agreement to install NT4. When Vista comes out, we will do the same. We will purchase PC's with VISTA, but install XP. Eventually, once all our software works with Vista, we will roll it out to everyone. By that time, half the PC's will have VISTA ready hardware anyway and the others will run it without Aero.
In which case, you don't even NEED to upgrade to VISTA, In fact, you don't even need to be on XP and could still be on 2000. This was an article for companies that ARE upgrading. If you are upgrading when you don't even need to and your needs are so minimal, you are just throwing money away at features you will never use.
This is my sig. There are many like it but this one is mine.
If your department/company is on desktops then the upgrade costs for a rollout will be minimal anyway as a vista PC will likely only be a couple hundred more than a bottom end XP box from dell, and I'm sure the entire optiplex line will be Vista compatible.
Not to pick on you in particular, but there is a pretty big misconception out there that Vista requires everybody to upgrade hardware. I was at a TechNet event (mandatory for work) last week regarding Vista deployment and the MS rep stood in front of 1000+ people and told us that officially, Vista absolutely WILL run on *any* box that comes with a Microsoft "Designed for XP" sticker on it, which most people are already using in a corporate environment (and if you're not, then you're clearly not the early-adopter type anyhow). Part of the install checks your hardware capabilities and turns off eye-candy and such to (hopefully) make a reasonable-performing system.
There is reason to be skeptical that it will perform just as good as XP, on exactly the same hardware, but he said that this was one of Microsoft's priorities.
Anyhow, my point is that most people won't *need* to upgrade just to run Vista. XP Ready == Vista Ready (although not necessarily "Vista Optimal").
teeker
Why are you buying models that change that often? The models we buy change maybe every year. We've got 5 years of stuff out there any maybe have 4-6 images for all of it (including the laptops).
Of course if you need to reimage your machines every 6 months, then you're obviously doing some other things wrong too.
I think he forgot an "f", making it 25-30% off that, which is completely reasonable for a desktop machine. 2000$ - 600$ = 1400$ which is what you cite.
I feel like he's lost the plot with regard to the functions *most* people do for their jobs (not /. readers of course...but the people /. readers support).
HR staffers, admin support staff, accountants, etc. aren't going to need Aero.
Aero is really just a fancified interface and while it's pretty, it adds nothing but overhead to people who just need to get the excel sheet written. Verdict? - no hardware upgrade is truly necessary.
If you run Vista in 'windows classic' mode with no themes and no fancy options (basically like windows 2000) it'll run just fine on almost anything currently running XP.
The compelling reasons to move to Vista from an Administrator's point of view is in the background...everyone runs as 'Normal User' until an admin function is required - at that point you're prompted with a credentials popup that, while annoying as flan may end up saving support staff untold hours of undoing the evil that users can do in XP and Win2k because on those operating systems they frequently feel they have to run as local admin to do their jobs; Adding printers and changing wireless networks are no longer admin-only functions.
Bottom line - this guy should spend a little more time learning what 'Vista Capable' and 'Vista Premium Ready' means as well as identifying target groups that would use/require the Aero Glass features before he spouts off on the costs to companies who are full-blown Windows shops.
No way he's going to be able to do that and still make money. Sure DELL & HP cost a little more, but when things go wrong, I have someone to yell at. I have been buying DELL, Apple, HP, & SUN for a major organization for about 10 years. I spend a lot of money and I am often asked by my users, "Why not just get a board from Tiger, and RAM from crucial, etc....." and I always have to argue the warranty. But, these same users that think they are going to save money are the first ones to come to me and say "Its broke, what do we do now." I have had all three of these vendors out to do repairs, and they always do a great job and they always have the parts they need - never an issue. i have evne called DELL and said "I'm sick of messing with this machine, your techs have been out twice, give me a new PC." They not only give me a new PC, but a lot of times it has been a newer model at now extra charge. OK, I'm off of my soap box now!
You are so right. We're in a bank. 85% of the people here run one application...the teller app. Absolutely no need for Aero and all the other stuff. They log in to the network, crank up their teller app and stay in it until they go home. They use e-mail...but not Outlook. Our company doesn't do Word. Our XP PC's are streamlined....no funky Toys 'R Us interface...no balloon help...no shadow cursors...no animated menus. ZIP support is shut off...USB is shut off. These are basic terminals.
We need Vista like we need a delivery of counterfeit money.
...moving your key production applications to web-based alternatives, standardizing on FireFox and Thunderbird for web browsing and email, and getting people comfortable with OpenOffice by handing out disks for everyone in the company to take home and play with then today you could laugh at Vista upgrade costs because you could use any client OS you wanted.
Some companies have actually been doing that and now it's paying off.
I believe his calculations are going to prove pretty close to on target. If they're over it won't be by much. I use the following rule of thumb guide for hardware/software upgrades/refresh:
That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
When the dot bomb happened and we pushed to a 4 year cycle support costs in that last year were dramatically higher than the other years. The knee in the curve appeared to happen at 3 years 3 months (quaterly mapping).
/.?
Doesn't anyone know the WHOLE reason why the TCO of computer infrastructure rises after three years? Don't ANY accountants read
The TCO of computer hardware includes "depreciation expense". The government allows a certain percentage of your fixed assets to be written off for tax purposes. I'm not sure of the terminology in other countries, but the maximum permissible depreciation allowable for taxation purposes in Canada is called the "Capital Cost Allowance". In the case of computers it has been a linear depreciation of about %30 of the original cost. That means your computer is "written off" in about three years. I believe the US has a similar allowance for depreciation expense on computer hardware.
This has more of an effect in the US IIRC, becasue in Canada, if a business does not claim the full allowance (for example, if it is not required to bring net tax to zero), the unused portion PLUS the normal maximum CCA is allowed as a deduction. (I THINK) in the US businesses CANNOT accumulate unused but allowed depreciation expense in future tax years so a business tends to make sure to write off the largest amount possible. This means that in each of the first three years of a PCs life a business could save hundres in taxes from this deduction.
After three years PCs are essentially WORTHLESS assets--they contribute exactly ZERO dollars to the asset portion of the balance sheet, and yet they continue to incur maintenance expenses so they would probably have a noticeably larger negative effect on the balance sheet if there are a lot of old PCs in a busines. Furthermore there aren't many warranties on PCs that go past a year much less three years so if there is a problem a business must bear the full cost of repairs--on an asset worth $0.
Realistically a company could get SOME money from the sale of three year old PCs, and even three year old laptops could be prefectly usable and capable of running five-year-old XP and any contemporary application software. From my practical experience, aside from hardware failiure a machine that is 3 or 4 years old is no more trouble to support than a new machine--WinXP still costst the same for both, it still buggers up just as much on new machines as old, 3 year old machines in an office environment are not all that slow so it doesn't take any meaningfully longer time to perform various tasks and if things are really fouled up both new and older machines have the same reimaging process. Aside from replacing hard drives, however, most hardware upgrades become more expensive over time, when warranties expire and models are discontinued.
I'm not an accountant (as is probably evident from my post--I'm just waiting for a real accountant to pick it apart) but wherever I've worked it becomes instantly and magically easier to justify replacement of a workstation desktop or notebook the moment it becomes three years old, and in the vast majority of cases there was no similar magic jump in maintenance costs. We had scads of flimsy, cruddy Dell C600/610s that were already expensive in terms of hardware replacement costs well before the three year time limit, but it was only at the three year point where the bean counters on high would finally say "yeah, it's crap...put an order in for a new one". I cannot say EXACTLY how much or what kind of a positive effect it has on the financial bottom line, but once accounting has fully written off a PC their tone changes dramaticaly and they are almost eager for you to upgrade--slightest little issue (especially with hardware) will justify an upgrade to a whole new machine.
ANyways, I'm sure that because of this behaviour, it could be almost a full three years before we significantly move from XP to Vista. All incoming PCs will be imaged with WinXP for t
So just get two or more spares ready for deployment in an emergency! If you need 50 identical desktops, buy enough bits for 55 machines. If one goes down, you bung in a spare while you fix it -- substituting parts from another, known good machine. The original spare stays put and the fixed machine then becomes another spare.
Installing identical software on many machines is easy too. Either use dd to copy an entire drive (BTW, this even works with Windows: boot from a USB device if possible, otherwise a DVD+RW drive [DMA-capable, won't slow down the bus] on hdb and have hard drives on hda and hdc); or set up your own local mirror of your favourite distro, and install over the LAN via http or ftp.
Je fume. Tu fumes. Nous fûmes!
Here is the reality.
All PCs eventually get lifecycled, and all new PC's come with a copy of Windows (Vista starting next year) whether you like it or not. Worst case you have to upgrade from Home to Professional versions at purchase time. If you want to use your existing PC, then just pay the upgrade fee. Unless your hardware is old, it will probably run Vista with a minor memory upgrade. If your hardware is old, buy a new Vista ready PC.
Vista needs more powerful hardware. So? Once upon a time a new PC had a 286 processor and less than a 1MB of memory. By christmas most PC's will be Vista ready. If you really want the full Aero experience, upgrade the video card when you buy the PC.
Office 2007. If you already have a version of office... upgrade! Why would you buy new? If you don't have Office now, then you don't need Office 2007.
Finally. Why do you need Vista & Office 2007? For most of us XP & Office (XP or 2003) is good enough for now. Do you need Vista & Office 2007 or want Vista & Office 2007? If you are an early adopter, then its the price you pay.
Short of it. If you have never owned a PC, the cost of buying a Vista ready PC with Office 2007 is probably going to be steep. As you have no legacy requirements (how could you if you have never owned a PC?) then think Linux or Mac. Otherwise you are buying into the perpetual M$ upgrade program with both eyes open, so don't complain. If you do own a Windows PC with Office, then you are already in the loop, so upgrading is the cost of doing business.