Small businesses splashing out over £7bn on superfluous server technologies.
The UK’s small businesses^ are wasting more than £7billion^^ on unnecessary IT equipment according to online storage specialists.
Ignorance of new technologies is driving many small firms to simply invest in traditional server technology in the often false belief that it offers the cheapest and most secure access to business files.
However, SilentStorage believes few are examining the true cost of server computing or looking at alternative options, such as cloud computing, which could save their businesses around £1,500 a year.
In addition to the initial outlay of around £1,800, there are also set-up and maintenance costs as well as depreciation over the server’s lifetime – usually around three years.
SilentStorage has reviewed an equation to help small businesses calculate the true cost of investing in a server.
Cost per year = (ll + S + M + D)/Y
ll = initial investment,
S - set-up costs - time + software purchases
M = maintenance costs - software upgrades + problem fixing
D = rate of depreciation
Y = server’s expected lifetime
“With just a handfull of phone calls and some limited web research can quickly give you an idea of the upfront cost of buying a new server, but how many companies are aware of the true longer term investment required,” said Luke Kierman, joint founder of silenthost.co.uk.
^ Companies with less than 50 employees
^^ Number of companies in the UK with less than 50 employees - 4,646,475 (BERR 2007)
Total overspend in the UK - £7,231,368,000 based on an average saving of £1,525
~ humyo.com reveals the true cost of computing ~
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