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                          •  Technological life  A system may become impractical to maintain even though it
                             can still be repaired and maintained. For example, it might not be possible to find
                             the right type of memory chips for the system because they are no longer made.
                             Another way to look at this is obsolescence.
                          •  Economic life  A system might still be functional, but it costs too much to use. It
                             might also be that newer systems can be purchased that have lower operating costs
                             so that the payback period of making that purchase is short.

                               Months     6     12     18    24    30     36    42    48





                                    Useful Life




                                    Economic Life



                                    Technological Life
                                                   A system’s life is based on economic
                                                       and technological factors.

                         It might not be possible to precisely predict the lifetime of a system up front, but you
                      can estimate it by taking these factors into consideration.

                      Cost
                      Of course, overall cost is an important factor when evaluating your system’s life cycle. But if
                      you find a computer that costs US$2000 to buy, realize that you aren’t just spending $2000
                      per box. You also have to pay for the electricity to power it. You also have to consider
                      maintenance costs, and the like. So when figuring out cost, you must include a number
                      of factors:

                          •  Initial purchase price  The typical balance IT managers face here is deciding whether
                             to pay a higher upfront purchase price in the hope that lower operating costs can be
                             realized. There are also issues of how much money can be spent on the upfront
                             purchase price.
                          •  Energy costs  The power it takes to run your machines can be a significant part of
                             overall costs. The more “high performance” a computer is, the more likely it will
                             need additional cooling, which also adds to the overall power cost.
                          •  Maintenance  If you buy especially inexpensive computers, you may find yourself
                             paying more in maintenance costs. Cheap computers are great at first, but when
                             hard drives fail and NICs don’t work properly, you’ll spend money fixing these
                             computers.
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