Re: Reaching out ... ??

Keith F. Lynch <kfl@xxxxxxxxxxxxxx> wrote:
<rkshullat@xxxxxxxxxxxxxxxxx> wrote:
I've also dealt with the opposite problem... Company was spending
$250,000 a year on maintenance and support for a group of servers.
I could have replaced them for $400,000 including three years M&S,
but there was no budget for "capital" so they spent the $250k/year
for the next 4 years...

Typical. No wonder the economy is in the toilet, with corporate
management like that.

I am (thankfully) not in Finance, but my understanding is that it's the
tax impact that bothers them. Capital is "on the books" for years. Expenses
and capital also impact the balance sheet differently.
Government, or at least the university I worked for, was pretty much the
opposite. One time capital purchases were relatively easy, budgeted
expenses were very difficult, even such things as maintenance on servers,
since they represented an ongoing commitment by the state.

Robert
--
Robert K. Shull Email: rkshull at rosettacon dot com
.

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