Balancing Budgets Part 2: Reduce CAPEX Spend Through Cluster Consolidation & Controlled Density Increases

Unlike OpEx, No Small Workarounds for the Depreciating Value of CapEx

How many times have we sat in CAPEX meetings astonished by the amount of money we spend on things such as hardware and perpetual licensing (read also: Balancing Budgets Part 1: How to Avoid Runaway Software Licensing), it seems to rise every year no matter what! For years the hardware resellers have been making a killing off of the IT industry, as have the manufacturers. Unfortunately CAPEX spends like hardware doesn’t have the small workaround that you can use with OPEX like open source software or things like that. How do you reduce what you spend on things such as physical hardware, the software that goes on that hardware, or the datacenter that the hardware sits in?

The worst part about CAPEX expenditures is that they are a depreciating investment. Just like buying a brand new vehicle, as soon as you drive off the lot the vehicle loses 20% of its value. The same thing happens with hardware and perpetual licenses. You have to map out years in advance to make sure you get your full investment out of your hardware before it becomes obsolete, and then start the cycle all over again. This is such a waste of funds that could be appropriated somewhere else.

Read the entire article here, Balancing Budgets Part 2: Reduce CAPEX Spend Through Cluster Consolidation & Controlled Density Increases

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