What To NOT Spend Your Money On

As a technology provider, telling my clients to NOT buy something seems really dumb on my part! But, since I try to be a Pro-Partner to my clients, rather than just a vendor, this guidance is something I’m proud to provide.

What To NOT Spend Your Money On….

Here it is in a nutshell: Don’t buy technology for future needs.

As time passes, technology gets more and more powerful, and costs less and less.

The pace of technological improvement is obvious. At the same time, prices go down over time. In the consumer market, I remember Blu-Ray players priced at $600. Now you can get one for under $100. The same thing occurs in business-grade computer hardware.

Another factor at work is obsolescence. When you buy a server, even if it still works five years from now, you should be thinking about a replacement. Computers do NOT age as gracefully as we do!

For example, suppose Bob works at a manufacturer in Waukesha. He wants to buy a server right now for file storage. Bob knows that the company plans to move to an MRP system in the next three years. In anticipation of the MRP requirements, Bob buys a powerful server with large, high-speed hard drives, multiple processors, etc. As a result, Bob spends three times what a basic file server should cost, but he knows that now he’ll be ready for the new MRP system.

I’m sure you already see it coming. Bob just spent a ton of money on TODAY’s technology, at TODAY’s prices. In three years, when the company is ready to move forward, there will be better, faster hardware available at lower prices. Plus, the server will already be three years old! Not only that, but in three years, the MRP software may evolve. Maybe it will run “in the cloud”. Bob should have just bought a file server for today’s needs.

Don’t get me wrong, I’m NOT saying to “cheap-out” on your hardware! In this example, Bob should get a file server that can fill that role for several years. That means the server should have adequate hard drive space for data growth and enough processing speed to avoid bottlenecks.

If you need some help or advice, give me a call. Our initial meeting is no charge.

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