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Um, the real reason CFOs go for cloudserver solutions is tax reasons. The tax breaks for "leasing" instead of owning, are a cheap way of an exec looking good to
by NoOneNew 6y ago
Um, the real reason CFOs go for cloudserver solutions is tax reasons. The tax breaks for "leasing" instead of owning, are a cheap way of an exec looking good to a board (plus it's easier to do creative accounting). I promise you, this accounts for easily 70% of equipment leasing/renting agreements, no matter the industry. Construction, printing, food industry, etc. They get a full tax break on the lease and on the service agreement tied into it. This looks good in the short term, but is obviously shit in the long term. I've been apart of too many arguments with clients about this. The person who signs the cheques always mentions the tax incentives and the lower initial yearly costs. But then they lose their ass 5 years down the line. You can argue tech reasons all you want, but it's ego driven money that drives the cloud industry.
Wile I agree mostly with the author... wtf is all the hate with C# I see from people? lol "whatever the heck people use C# for". This pops up so often. C# is the F-350, Catipillar, Kubota of the tech world. Yea, it ain't sexy, but it's meant to just get work done. When it works, no one notices. But when people screw with it, yea, it's easy to laugh at like the videos of crane construction fails (mostly operator error is to blame). While other tech might be the Bentley and Ferrari, they're either all looks and no muscle or catch on fire when something minor goes wrong (looking at you MongoDB :P).
- disgruntledphd2 6y agoI've assumed this for a while, because so many companies appear to be doing this - do you have any links to the tax savings as I'd like to understand this in more detail?
- rbanffy 6y agoIf you don't need what cloud providers offer you, from hosted databases, access control, blue-green deployment, load balancing, auto-scaling, multiple detacenters, etc, there is little point in going with something like AWS. OTOH, if you decide to do it yourself, you'll need to engineer a lot of what you need. That costs time and money. In the very low-end, it's cheaper to go bare VM. As size and complexity grows, it'll be cheaper to go with a cloud provider for a while, until you reach a point where you have so much infrastructure and so many services running that moving parts of it to on-prem will be the cheapest option. At this point, you will be your own little AWS.
- NoOneNew 6y agoA good base search would be "lease vs buy equipment tax benefits" for your country/state/city, just to get your feet wet. There are different incentives for different areas. From there, you should be able to google fu around for more information/tips/tricks. It's slightly not-straightforward stuff, but it's not terribly complicated after a little bit of reading. However, there's a reason why tax code books are so dense. When in doubt, ask someone qualified that's smarter than me, CPA or whatever else accountants get for certs.
- disgruntledphd2 6y agoThank you!