Economy’s Effect on IT

Blog Author: Aaron Smith | November 18th, 2008

By Ryan Spillane, Managing Director

You must have been hiking in the Andes (one of my dreams) for the last few months not to have witnessed the media pumping us full of information about how bad the world economy is and how the Australian Dollar, in relation to the US dollar has dropped significantly.

By now you may have noticed that in the last few weeks, the price of computer equipment and software has generally gone up by 10-25%.  This is a direct result of the Australian Dollar dropping about 30-40% of its value to the US Dollar.

Most of the large manufacturers; HP, IBM, Toshiba etc have raised prices, but only by about 10-15 percentage points, to prevent the market and their customers feeling the huge shock that would be inflicted if they raised their prices the full amount. They are also working on the assumption the Aussie Dollar shouldn’t be sitting in the low 60 cents and will go back up, and in turn it has – at the time of writing this article the dollar is now back around the 68-70c mark.

To date, most of Microsoft’s licensing has not changed price, only their OEM software (the type that comes when you buy a new computer) has gone up, as this is priced internationally against the USD every day.

Microsoft Australia has gone one better too; between now and the end of December, they have taken 15% off their Windows and Office Software purchased under the “Open” Licence agreement.

Our recommendation is to work with us and review the equipment you currently have and work up a list of suggestions that you can implement over the coming 6-12 months.  This will let you adjust your budgets to accommodate for what essentials might be needed and quite possibly extend the useful life of the server and equipment you have now.

By having a plan, if one of the larger  vendors runs a special then we/you could potentially take good advantage of it.  It also minimises the impact of untimely surprises along the way.

And, while things may seem uncertain, remember – one of the best ways to combat the gloom is to maintain a positive attitude and to keep your goals in focus.

 

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