How often should a small-business owner buy new hardware and software? That depends on an owner's cash flow, and when that business owner can afford to buy new hardware and software to use in his business.
It's not an insignificant amount. For example, a five-employee company could pay on average more than $16,000 when you include the cost of purchasing a server, software, a backup method and computers. Not including the additional expense of maintaining infrastructure.
Then after three to four years, the hardware tends to get older and slower. The software probably needs to be upgraded, plus now you are faced with, "Do I need to buy new hardware all over again?"
So what is the alternative?
Today's technology gives the business owner the ability to pay month-to-month. Intel, for example, has come up with the hybrid/cloud-based server solution.
You can design the server hardware to fit your current needs by having several options on microprocessors, disk drives and ports. On the server software side is where the cloud part comes in. Before the server is installed, Intel has a host of software options that you can download to the server based on the current needs of the business.
Instead of having to purchase a full license that can cost thousands of dollars, you invest on a monthly basis. This comes in handy as you add or subtract employees because you can decrease or increase the number of licenses and only that amount is processed for the month they are employed.
The really great thing about this solution is that after three years, you get a new, faster server and all the software is automatically upgraded to the newest versions as they come out. Now, you don't have to worry about investing into new hardware, upgrading the software plus the headaches that come with going through this every three to four years.
On the desktop or laptop situation, what can you do there?
The Cloud services have opened this option up a bit with the introduction of iPad and tablets. There is also the option to have virtual desktops utilizing thin client technology and virtual software from companies such as Citrix or VMware. Depending on the company's needs, you can just go with iPad and tablets with Microsoft's Office 365 Cloud offering. This can give you flexibility, security and lower cost per employee. The thin client route also gives you security with a little less flexibility in that the monitor and thin client box is located at the employee's desk. The idea being you don't have to purchase fully licensed software on either solution and then have to upgrade each time the vendor wants to release a new version.
The above options can also be incorporated into a monthly investment toward outsourcing IT services that completely frees the business owner to focus on his business and leave information technology to the experts.
In today's economy, small business owners need to look at ways to maintain healthy cash flow and you now have options that can help you achieve these goals.
Wood can be reached at [email protected]

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