Denys wrote:

> I tried to explain to senior management that prices kept coming down and
> that computing power was increasing every year and that it was stupid to
> buy for years in advance.  I repeatedly tried to explain that the
> company would save oodles of money (a financial term) if they just
> started buying with a shorter view.
>
> I was told that since getting capital funds was such an involved process
> that it actually cost less to spend more upfront rather than go back
> more frequently for smaller amounts.

I would expect some portion of this has to do with general accounting
practices for asset depreciation and life expectancy, but also because the
advent of distributed processing power is relatively new to the business
world.  Buying a honkin' huge computer and paying for it over five years,
*still* makes more sense to most accountants than spending 40% of the money
now, and spending 25% again at 18 months and 36 months, ending the same five
year period having spent less money and having a more powerful system
online.

Rs~

Russ Smith
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