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Comment by rhubarbtree

17 hours ago

It dropped down, but is now being extended to 5 years.

The 3 year number was reported by the FT this year from a bunch of companies, where they were saying their accountants are extending to 5 years.

Another example, MS just moved from 4 years to 5.

You are confusing depreciation (which is mostly driven by tax reasons) with service lifecycle.

  • And you're confusing all of these terms. The "3 years" is the standard warranty and typically gets extended to 5 years (and maybe 7 or 8 depending on the vendor). This is consistent with Dell PowerEdge, HP ProLiant, etc. servers. Nvidia GPUs on the other hand...there likely could be different terms, but idk because they are not typical purchases for 95% of the companies who make server hardware purchases.

    Source - I regularly work with IT departments and review their contracts as part of diligence.

  • A lot of these tax codes were written when computers were outdated within a year. The turnover of computers slowed a lot in the last two decades, but the tax codes haven’t changed.