Typically towards the end of the year, we — and many of our clients — look at our budgets and see what business expenses we have left, and if they would qualify for the section 179 tax deduction or other budget-year spending requirements. We don’t normally even start worrying about it until the last two months of the year, but as we are still in unprecedented* times, we have new obstacles and delays that may impact this process.
Depending on what you plan to buy, there are some significant changes in store from vendors. Microsoft just raised pricing of Windows Server licenses by 10 percent. Exchange on-premises pricing is going to change completely coming up in a few months to subscription instead of perpetual. If you wanted cheaper Windows Server, you just missed out. If you want perpetual licensing for your on-premises Exchange, your time is getting short.
You might be thinking, “Okay, well prices go up. That’s not unprecedented*, by any means.” Well…
Were you planning some hardware purchases at the end of the year? Do you have to actually receive the hardware for it to count against budget? Depending on what you’re ordering, it may already be difficult to get it by the end of the year. Due to supply chain constraints, delivery times are getting farther and farther out, and the price continues to rise. Some network devices are showing 120-day lead times, and as of this publishing, that is cutting it right down to the wire. Depending on the server components in a new server, they’re showing more than 70-day lead times.
If you have to have the hardware you ordered received by the end of the year, order it now. If all you need is to be invoiced, no sweat, just watch the prices.
*Voted America’s least favorite word of 2020