Cascading of Servers

Having a server “pool,” or a cascading of used servers, is quite typical in many businesses. This pool might be used as backup, or it can be used for spare parts. Because the acquisition price of a server is greater than that for a client device, a tendency exists to retain servers in the installed base for a longer duration.

Just as in client computing, however, used server equipment maintains a residual value. The longer a server is retained in the installed base, the less its residual value. The trade-in approach discussed with regard to the client computing strategy applies to servers, too. There is a significant secondary market for used servers, but take care to ensure that the server is valued correctly.