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ICT Equipment Replacement Strategy

By Morgan Killick
Basic
This article
examines the Add to my favourites ( index.php?id=56&addfavourite=429 )
reasons for
regular Print this article ( http://ictknowledgebase.org.uk/replacementstrategy?type=98 )
replacement of
ICT equipment Email this article ( index.php?id=131&art icle_id=429 )
and looks at the
timescales, costs Discuss this topic ( http://ictknowledgebase.org.uk/forums/list.php?24 )
and planning
considerations
involved in a major upgrade.

Introduction
How many times do we see the latest computers advertised on television as ‘future proof’? Whilst
any computer you buy should always be able to do whatever you originally purchased it for, the
chances are that after just a handful of those years, both the way you work and your expectations of
your computer will have advanced significantly. With your equipment having little worth on the
balance sheet and staff complaining of slow performance, can you afford not to replace these items?

Why Replace?
Technology is bought in the context of a specific need. Over time these needs change dramatically.
Twenty years ago, your typical office worker didn’t even possess a typewriter. These days, most are
expected to type their own letters, operate databases, communicate by email and browse the
internet ( index.php?id=glossary&glossary_id=34&tx_a21glossary[back]=replacementstrategy&cHash=ee11bf8017
) . We accept the associated technology costs because we can see that - duly kitted out - our staff
are more productive, creative, organised and effective.

The main drivers for replacing stock are internal – taking advantage of those better, quicker and
more effective ways of working. But even if you don’t accept this rationale, there are other vital
reasons to save now in order to replace ICT ( index.php?id=glossary&glossary_id=118&
tx_a21glossary[back]=replacementstrategy&cHash=9228c2c042 ) equipment in future. Reasons that, whether
you like it or not, will necessitate this expenditure at some point.

Outdated hardware, wear and tear

Firstly, a computer is made up of a bunch of electronic components that are designed to push the
limits of speed and performance at a given price point. With massive investment in technology, the

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pace of innovation is very fast. The ‘latest’ cutting edge component can go from expensive luxury to
cheap and commonplace within months. In a year or so this product may not be manufactured any
more. This means that, in general, the older the technology, the more likely it is to be uneconomical
to repair. At the same time, with continued use and the action of heat, dust, power fluctuations,
physical shocks and wear and tear (in the case of hard drives), the machine is more likely to fail.

Operating System Obsolescence

Secondly, a computer is more than a box full of parts. The demands of the software you run may
well necessitate a new machine before the hardware ( index.php?id=glossary&glossary_id=29&
tx_a21glossary[back]=replacementstrategy&cHash=f05297a82a ) goes wrong. All operating systems have a
lifecycle – usually 5 to 8 years – a period in which the vendor undertakes to fix bugs, offer upgrades
and security patches. Inside this period, updates can slow a computer down. Outside it, the vendor
is putting all effort into marketing and promoting enhancements that will only be available to
customers of its new product. Your colleagues, clients, and those who provide support to you will be
using and focussing on the new system. In time, you can find yourself needing an upgrade just to
standardise and stay supported.

Demands of modern software

Thirdly, it’s not just operating systems and hardware that have this inbuilt obsolescence.
Application software ( index.php?id=glossary&glossary_id=68&tx_a21glossary[back]=replacementstrategy&
cHash=108803ea34 ) (accounts packages, graphic design packages, office suites etc.) often demand
the latest technical specifications. Whether this is actually necessary or not is another subject, but
the effect is that all of those things you bought your computer for ALSO have a lifecycle involving
new releases in an effort to become ever faster, more effective, more competitive, securer and more
desirable. What’s more, you can all but guarantee that that the latest releases will require ever more
processing power!

When and How Much?

Whether it’s because things have reached the end of their lifecycle or because you will have different
needs in future, you will have to replace most of your ICT equipment eventually. The key to success
then is careful saving over time. If you have budgeted consistently over a number of years, you are
free to choose the timing of your investment and are ready to pay for it before it creeps up on you.

From an organisational point of view, if you are looking at new premises, expanding staffing levels,
upgrading a key company database ( index.php?id=glossary&glossary_id=16&
tx_a21glossary[back]=replacementstrategy&cHash=d98c8ddbd0 ) or changing the physical delivery of
services, these are all good times to take a look at whether the new system you have been saving for
ought to be put into place too.

To aid your planning, the following table brings together the expected life spans for various items of
computer equipment and a rough replacement cost including software, installation and support.
This is not to say that these items have to be replaced at that time (see above) rather this should be
used as a basis for saving. We also look at some of the mitigating factors that may allow you to
prolong beyond what would normally be expected.

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ICT Equipment life span

Item Cycle Rationale Mitigating Factors Total Cost

Current technologies
can be out of date/
hard drives more
unreliable within 3-4
years Often scope for upgrading
‘mid-cycle’ ‘Clean’ install
PCs 4 years £500 per unit
Reduced performance of operating system can
with updates and prolong life
software

User expectation
increases
Laptops more
susceptible to wear Can be expected to last
Laptops 2 years and tear Expensive to much longer if not used £500 per unit
repair Lower much!
performance per £
Being left
permanently on and
heavily used, suffers
Advisable to budget for
more stress on core
routine replacement
components. Server £2500-£5000
Servers 5 years unless the organisation
software at end of per unit
clearly does not need in
supportable lifecycle.
future.
Server software
upgrades may well
require new hardware
Health & safety and Monitors rarely go wrong
aesthetic reasons and usually come with 3
Monitors 5 years often drive year warranties. There £100 each
organisations to are few technical reasons
replace. to change them.
All too often it works
out cheaper to buy a Some scope for
Printers (large) 3-5 years replacement printer reconditioned £250-2500
than to replace printers/components
consumables
Core Advisable to budget Networking equipment
£40 per
Networking 10 years to take advantaged of itself is unlikely to fail
person
Infrastructure future innovations even with heavy traffic

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