Should I Upgrade or Replace My Computers?

When is enough, really enough?  A common question with owning computer equipment is when should you stop putting money into your existing equipment, and when should you just replace it.  Although there are a multitude of conditions and reasons for applying both resolutions to your business or home computer equipment, we will cover a few factors that will assist you in making a better decision when these questions pop up. 

The company I represent replaces its equipment about every one to two years, depending on the machine being replaced.  We have found that by the end of a maximum two-year lifecycle, the computer is out-dated enough that it either runs the necessary software too slowly, wasting our employee’s time, or the hardware is incompatible with new Microsoft Windows versions or other peripherals attached to the computer.

Instead of replacing the oldest computer on the network, we believe in the ‘hand-me-down’ method, where we replace the most processor intensive workstations with new equipment, and filter down the replaced equipment to users with less powerful machines.  Common office software or accounting software doesn’t use as much processing power as a developer’s machine running graphics, video, sound, or high-end software development projects would typically use.  A machine replacement for our developer’s can save up to 25% of their total time waiting for information to process, which compensates for the new purchase within only a couple months.

The first obstacle to overcome is the ‘Need it Now’ syndrome.  Quick decisions aren’t normally very successful.  You will probably end up regretting your decision.  Proper research needs to be done before you can determine what your technology needs really are.  Take the extra 5 minutes and write a short list of the software you will be using, the functions you will be performing with the system, and the possible external devices you will be connecting, like scanners, digital cameras, printers, and PDA or mobile devices.  This list will help narrow the scope of possible solutions, but more importantly, give you a basis for your purchase and keep you from forgetting important parts to your system.  If you want to go that extra mile, lookup your software on the manufacturer’s website to find out what their recommended specifications are to run their software efficiently, or what hardware will work with different Windows versions.

After determining your needs, quickly review what your existing system(s) do and do not provide that you can’t live without.  If you are not ‘technically savvy’, travel to your local Office Supply retailer, and inquire about components that you can add to your existing system to fill the gaps in your requirements.  Some very inexpensive add-ons can drastically increase the lifespan of your system.  REMEMBER your first obstacle!  Don’t make a decision without getting all the details.  Don’t let the salesman push you into a new system before you get pricing for the additional components and the cost for the labor to install those components.  Don’t be afraid to get a second opinion.  In fact, we urge you to get a second opinion. 

After gathering your requirements and finding out what add-ons are available, you should immediately be able to see if you ‘need’ a newer computer or if you have the option to upgrade your existing system.  Those of you without the option of add-ons, your work is almost over.  Those of you that have the option of purchasing add-on hardware or upgrading your existing hardware face a slightly more complicated decision.  Don’t worry, it really shouldn’t be that bad…

Now that you have your requirements and the costs associated with purchasing an upgrade or a new machine, you need to determine how much time you will save by implementing each solution.  Most of the time an upgrade will save you money, but… not always.  If the cost of the upgrade is substantial, you will want to more closely compare the costs of a purchasing a new system.  Sometimes you can get a newer system for only a few dollars more than upgrade parts.

If you are still unsure of which option you should select, use this general rule of thumb.  If you work on your machine 30-40 hours per week, and you can save yourself approximately 2 hours per week using a new machine, you have probably just justified the purchase.  If you use your machine for less than 20-30 hours per week, you would have to save yourself closer to 4-5 hours per week to justify the purchase of a new system.  Of course this all assumes that you have the money in the budget to make the purchase, which leads into the next point.

Make sure you review your budget to determine what you can afford.  If the money isn’t there, then you may have to upgrade your system instead of replacing it, or simply just wait it out.  Most companies need to see that time savings before they consider upgrading or replacing equipment.  You should use this same philosophy for your own purchases, unless, of course, money is not an issue.

When looking for a new system, make sure you shop around.  If you work for a company that has its own IT department, or that works with an outsourced IT department, inquire about possible savings benefits that you may be able to get through your company.  If they purchase systems regularly, chances are they can get you a better price, or recommend where to get your system and get the best deal.  Most large companies like Dell, HP, and IBM have employee purchase plans.

A new computer purchase can certainly be exciting, but your problems don’t end with the purchase of a replacement system.  If it is for a home environment, you probably don’t have a server to save your data on.  So remember, you still need to get all the data and programs from your old system to your new system.  You can quickly build up hours moving your data and configuring your new system to get it to the way you want it.  To a company, this will outweigh the weekly cost savings you are looking for, and greatly extend the date to which you finally receive your return on investment (the break even point).  In a personal situation, the time you invest may be well worth the new purchase.  It depends on where you interests lie.

Upgrading components can be very easy and may also be done in less than a day.  Most office stores or electronics stores, like Circuit City and Best Buy, will upgrade your equipment while you wait.  Some will even do the upgrade for free, but make sure you get a quote before you have any work performed on your machine.

There are two primary upgrade types: internal and external.  Internal components require you to take the side panel off your system and actually install the new hardware inside the system case.  The equipment will then use the power provided by the case and the cables within.  Most people don’t feel comfortable with adding internal upgrades, because they are typically more complicated than just plugging something in.  External upgrades are usually much easier to implement.  Just plug in the power and plug the cable connector into the system.  The harder part can be configuring the component drivers and installing the software to make it operate properly.  External equipment requires casing to protect the device and an AC adapter to provide power which increases the price of the equipment. 

Although it may seem to be a complicated process, reviewing and comparing a new system purchase versus a system upgrade really isn’t all that bad.  Most businesses can’t operate without computers, which means there are many computer users out there.  So, if you want some assistance, don’t be afraid to ask around to your friends and family.  Just start with those two short lists… the programs/hardware you need and the costs associated with an upgrade versus a new system purchase.

Give it a shot, you may just learn something while you are at it!

Visit www.compdevsys.com!