Cisco Capital - The Useful Life of Technology

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Information about Cisco Capital - The Useful Life of Technology
Technology

Published on March 9, 2014

Author: JenniferBocca

Source: slideshare.net

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Understand the many definitions of the useful life of technology from Cisco Capital.

The Useful Life of Technology Why Newer is Better – By Any Definition

Misunderstandings in life can be humorous. © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Capital 2

The Useful Life of Technology Financial and technology decision makers view this term quite differently. Definition to a CFO Definition to a CIO Used in computing depreciation of an asset for accounting purposes. Used to evaluate the time an asset delivers value to the organization while maintaining efficiency. © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Capital 3

Physical vs. Practical For example, let’s suppose a computer might physically last for 100 years. A CFO might say, for financial purposes, it will be ‘useful’ to our business for - and depreciated over – 6 years. © 2013-2014 Cisco and/or its affiliates. All rights reserved. While a CIO might say that technology enhancement will render that computer obsolete in just 3 years. Cisco Capital 4

The Bigger the Technology, the More Critical the Discussion Perhaps nowhere is the definition of the “Useful Life of Technology” more critical or contested than as applied to today’s data center. © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Capital 5

Moore is Less Based on Moore’s Law, continual technology improvements result in delivering more functionality in less space every few years. Age of Server Install Base > 4 years old = 32% Server Performance > 4 years old = 4% Server Energy Consumption > 4 years old = 65% more energy required to operate *Intel analysis, 2013; Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. Performance tests, such as SYSmark and MobileMark, are measured using specific computer systems, components, software, operations and functions. Any change to any of those factors may cause the results to vary. You should consult other information and performance tests to assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products. For more information go to http://www.intel.com/performance © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Capital 6

Diminishing Space. Higher Returns. To better understand this, envision this scenario. If in 2009, a company required 100 servers at four square feet per server with a cost of $100 per sq. ft. for data center space, the total cost of the footprint would be $160,000. © 2013-2014 Cisco and/or its affiliates. All rights reserved. But if in 2014, a company could achieve the same performance with only 60 servers, the price drops to $96,000 for the total footprint cost. A savings of $64,000 Cisco Capital 7

A Shared Vision We can drive innovation and continue to upgrade to more efficient technology! We can have the newest technology that adds value to the business while maintaining capital efficiency! Cisco and Cisco Capital unite financial and technology decision makers by delivering financing solutions that satisfy everyone’s definition of “Useful Life of Technology” © 2013-2014 Cisco and/or its affiliates. All rights reserved. © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Capital 8

Cisco Capital  Get the latest Cisco solutions while avoiding a large cash investment  Avoid technology obsolescence with flexible upgrade and migration options, as well as easy equipment disposal and recycling  Accelerate your competitive advantage by bringing your technology investments forward  Spread your total costs over time with a single payment that includes technology, installation and maintenance costs  Reduce OpEx and potentially limit CapEx © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Capital 9

Learn More Visit ciscocapital.com to learn more about Cisco Capital and how we can help you redefine the Useful Life of Technology for your business. © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Capital 10

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