While your bit on CapEx vs. OpEx is interresting, the fact that IT systems deteriorate quite rapidly and fall short of the technology advances is evident. A new server is required and software require new licenses as they are bound to get out of life cycle support. Keeping legacy systems are a MAJOR security flaw in many enterprises, so renewing hardware and software is important. That goes for all... Even government... The server investment ten years ago for $500 000 isn't really worth that much today if it can not run the latest software properly. Example: A company running Axapta 3.0 or NAV v4 is in hard times because the server updates to OS and Databases will mess up the systems. To keep a Windows Server 2000 with SQL 2008 IS a security risk... A very important case is also the paradigme shift in software development and consumer patterns. The cloud has only come in to effect (mainstream) the last couple of years and software hasn't really been developed up until now to support the digital transformation that is happening. New mobile first applications and a faster pace require organizations to keep up to date. If you keep to old technologies, software and methods you'll be out on the side line while your competition, customers and partners leave you behind...