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At the endpoints which are little more than little dumb boxes. Of course the server's rather pricey. But since I get to manage everything one time one place the cost to ME, my time, is far less. See hardware is for crap. It's disposable. And Farhad - PC's or Macs really aren't resellable. Just junk them and move on. But across the financial life of a computer asset about 75% of the total cost is labor. Assign a dollar value to your own time and apply it. You'll find that the easier it is to run your stuff the cheaper it is to own. That's kind of why FASB 3 year depreciation is trivial. Sure you can write down the box to zero in 36 months, but not only will you probably keep it that 4th year, you have to maintain it all 4 years. That's the expensive part.