How long should a business computer last? This is a question we are asked fairly often by our clients, especially when they are looking to purchase a new device.Technology can feel like a big investment upfront, but when that cost is spread over the lifetime of the device the annual cost can be quite reasonable.

In financial depreciation terms, the ATO considers the effective life of the majority of hardware such as servers, computers and monitors to be 4 years, whereas Switches and Firewalls are listed at 5 years. You can check out the current depreciation rates for computers here. 

When assessing whether a computer or server should be replaced we generally take the following into consideration before making our recommendation:

• The age of the device
• If it was still under warranty
• Processor speed
• Amount of RAM (memory)
• Any known issues for the device (such as hard drive crashes or non-functioning hardware)
• Whether it met the minimum system requirements for critical business software or new operating systems (such as an upgrade to Windows Professional to allow logging in with their Microsoft 365 account or PIN)
• Whether productivity of the user is impacted

We recently undertook an audit for one of our manufacturing clients, they employ a mixture of staff who rely on resource intense AutoCAD software and Microsoft Office 365 and office admin staff who utilise Microsoft Office 365 as their main software. 

The AutoCAD software recommends a minimum of 16GB of RAM (memory) and a 3GHz+ processor as minimum system requirements, whilst Microsoft Office 365 for Business lists 4GB of RAM and a processor with at least 1.6GHz speed to run it successfully.  

Whilst a computer with 16GB of RAM fits the individual minimum system requirements for running either program, using them together poses some problems in real world use. This is where we recommend 32GB of RAM and an i7 processor as the minimum standard for their devices to ensure there is no lag when their staff are working day to day.

Our client has chosen to implement this as a minimum standard of hardware featuring, they are aiming to make the devices futureproof for any additional software programs and this also means they have a standard build for all of their computers, and they can redeploy any excess devices to either designers or office admin staff and not worry about the spec being insufficient.

When to replace your technology 

The general usable lifecycle for a laptop is between 2-4 years, however batteries may need to be changed earlier, 18 months to 2 years is the typical lifespan of a laptop battery, especially if the laptop is not used on battery power frequently. For laptops we would recommend aiming for a 3-year replacement cycle for productivity gains.  

Desktops have a longer lifecycle, however much like laptops, 3 years is a sweet spot for productivity gains in upgrading and if your business happens to have a policy of reselling your devices at end of life, then you can also expect to get a better sale price at the 3-year point vs 4 or 5.

Looking at other business technology, you can expect 3-5 years out of an on site server, we would recommend a 3-year replacement cycle for them.

A high end Uninterruptible Power Supply (UPS) can have a useful life of up to 10 years, though batteries will last 2-3 years, so you are looking at 2-3 battery changes in that 10 years, before you need to change the whole unit. Newer LiPo battery based UPS's will last longer on a set of batteries and may not need a change in the 10 years.

General networking equipment such as switches need to be replaced every 5-10 years, VoIP phone systems also average out at 5-10 years depending on the required functionality and how much of the infrastructure is cloud based, some of our 3CX phone systems for instance are completely cloud based with no physical handsets or PBX and will last the test of time. 

Whilst the depreciation for CCTV systems is 4 years, you can expect that they will last longer than that, but they are also not immune to occasional failures such as storage drives and cameras.

We also highly recommend replacing items that are out of warranty, if a computer requires repairs under warranty then it can usually be done without significant issues for your business by choosing a Next Business Day on-site Australia wide warranty, like we have on our Leader branded devices, so the most you might be without a computer is 1 business day. Warranties can be adjusted to suit your preferred lifecycle, up to 5 years.  FortiTech can supply server warranties for instance that are 24 x 7, 2 hours on site response time, you have read that right, a technician will be on site with parts for repairs within 2 hours, no matter what time of day or night.

Benefits of replacing your computers

On the Australian average wage of $100,017 per year for an employee
(ABS stats May 2024), improving their productivity by an hour a week equates to $2,632 a year, so money spent on a better computer has an almost instant tangible improvement in productivity, but not only that, there is an increase in staff morale and businesses get more billable work in return.

Before the upgrade, employees were waiting up to 30 minutes each day for their computers to process data. With the new setup, these wait times have been slashed to mere minutes, leading to a noticeable boost in productivity and employee morale.

What to look for and what does it cost?

When deciding on a new computer there are a few things that will need to be taken into consideration: 

• Does it come with a manufacturer on site warranty, onsite warranties are far and away the best option to cover your investment versus a mail-in option or returning the item to a service depot
• What are the system requirements of the programs you run day-to-day
• Is it fit for purpose for the role of the employee i.e a CAD designer will need a higher spec computer than a general office worker.

Pricing for a laptop similar to the ones our client has chosen to go with, which are equipped with the latest Intel i7 processor and 32GB of RAM and 3 years on site Australia wide warranty is around $3,100 + GST, this isn't much more than a standard mid-range laptop, and with the productivity gains based on 1 hour a week or $2,632 a year it will pay for itself in no time.

Desktop pricing varies depending on the specifications required, but on average are around $2,100 + GST and you can also add on dual monitors for even more productivity.

Ultimately, investing in the right hardware isn't just about keeping up with technology—it's about empowering your team to work more efficiently and effectively. With the right approach, a new device can pay for itself through improved productivity and employee satisfaction.

What are you waiting for?

Ready to upgrade your business technology? Contact us today to find the perfect solution for your needs
give us a call on 1300 778 078 or drop us an email and we can put you and your team on the path to productivity.