Delaying PC refresh will cost SMBs money: Intel

03.07.2009
With the economic uncertainty many small-and-medium-sized businesses are delaying their PC hardware refresh cycles to save money, but it's a decision that could actually be costlier in the long-run. That's the message that Intel Corp. (NASDAQ: INTC) sent during a recent Web briefing on the SMB PC market, and it's a message that could help resellers and system builders close sales.

Indeed, Intel pointed to a recently study by Techaisle.com on SMB Pain Points that found as SMBs try to extend their PC lifecycles beyond three years, which is considered the industry norm, the costs to the business begin to escalate dramatically.

"The downturn is pushing the PC replacement cycle out for SMBs, but the consequences are increased viruses and security risks and higher maintenance costs," said Robert Crooke, general manager and vice-president of the business client group for Intel. "Moving-up a new PC purchase or refreshing is actually a better payback, usually within one year."

According to the Techaisle.com study, SMBs are generally bullish in their belief there will be an economic recovery, at 85 per cent. They diverge, however, on just when they expect the recovery, almost evenly dividing on forecasts of anywhere from three months, to more than two years, to just don't know.

Dividing the data between the mid-market and small business, the study found 43 per cent medium-sized businesses are extending their PC refresh cycles, while 54 per cent haven't changed them. Among small businesses, 26 per cent were extending their equipment life, compared to 73 per cent sticking to their original timelines.

"If you have an uncertain situation on the recovery, waiting for it to happen (to refresh your PCs) can be a risky scenario, because there are consequences," said Crooke.