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Taxes and Total Cost of Ownership (TCO)
Most of us who work with computer systems are not concerned with what can be a tax deduction. We, reasonably, leave that up to the accountants. I am the last person you want to engage for tax advice.
With the increase in Cloud deployments it does make sense to take a look at your total cost of ownership for your operations. When you deploy your applications in the cloud you have no physical hardware or software costs that you can depreciate directly. Basically, you are leasing your computer systems which have a completely different tax schedule.
There is even a difference between owning and leasing hardware and software, which is similar to the Cloud with the exception that you may be hosting the hardware or software yourself, or at least have exclusive use of the resources.
Let me fall on my sword here and apologize to all readers from businesses outside the United States of America tax regulations. Any thoughts here are strictly based on that perspective.
The universal point, however, is that the total cost of ownership for our hardware and software may be determined not only by the cost of the products themselves but also the tax breaks, if any, that are associated with the different pricing models.
So, for those of you in the USA, Happy Tax Day.
Please send your comments on this or any other topic to btaylor@sswug.org.
Cheers,
Ben
$$SWYNK$$
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