Daniel Mayer wrote:
--- Anthony DiPierro wikilegal@inbox.org wrote:
You know, those figures would make a lot more sense if they were done on an accrual basis rather than a cash basis. As is the figures completely ignore the fact that the expected life of the servers is more than a single quarter.
The figures I gave assume that all the hardware we have already bought is still in operation (which surprisingly is more or less the case).
If you're using those cash-basis figures that's another problem with the model as well :).
Yet the model has closely predicted increased costs for the last year (yeah, to an extent this is self-fulfilling, but only so much so)...
Anthony makes a good point. Hardware does break down over time, and has to be replaced. Even more likely is that it will become obsolete before it breaks down.
The projections of increased costs that you talk about are fine as far as they go, but this has all been in a period of rapid growth. Sound accounting practice requires that we be prepared for the evebtual plateay.
Ec