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Comment by guptaneil | Hacker News Reader

Your cost analysis doesn't take into account the time value of money. Being able to spread all those upfront purchases out over a monthly cost that includes IT support and the latest hardware at all times is definitely a valuable proposition. You are assuming a 4 year life on your netbooks. If one of them breaks, tough luck.

However, like you said, the usefulness of Chrome OS for students is definitely debatable. In a few years, a web-app only classroom might be more viable, but right now, it doesn't seem too practical. Plus, a tablet form factor seems more useful than laptops for classroom use.

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I have to say I don't understand what you mean by "the time value of money".

For the record the 4 year is based on using that brand for some time. They actually can go about 4.5 years but after 4 years we consider them a loss. I can't imagine Chromebooks are going to be replaced more often than every few years.

On the Asus even if a few break (and it happens) the cost is spread over all the rest making it negligible (less than $.75 a month in my experience)

By time value of money, I meant that present value of money is greater than some theoretical future value. So although your laptop costs about $11/month spread out over 4 years, it's still a $558 investment upfront, at which point it's a sunk cost. On the other hand, you could just invest $20 and invest the remaining $538 in something else that might offer greater return. Depending on the kind of interest rates you're able to get, it might be better to just put the rest of the money in the bank and let it earn you interest. There's also less risk. If something better comes along next year, you can easily switch with little to no loss.

I am assuming that you are not using a payment plan to buy your netbooks, and are actually purchasing them all upfront.

I see your point now. And on the interest point I'd concede it but even if we got a monstrous return on that money I can't see it making much difference.

Though another issue is with the Google Chromebooks you have to sign up for a 3 year contract (though you obviously wouldn't have known that when you made your initial comment): http://searchengineland.com/google-chromebooks-out-june-15-3.... So on being able to change course that's not as possible as it seemed when you made your comment.

How are you going to have "the latest hardware at all times" if they require a 3 year contract? http://searchengineland.com/google-chromebooks-out-june-15-3...

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