This is interesting bit of information:
“Investments in our software that increased efficiencies in how we operate our server and network equipment as well as advances in technology have resulted in lives extending beyond historical accounting useful lives,” she added.
Those investments will save Microsoft billions every year. Hood predicted the change will make a $3.7 billion difference to Microsoft’s bottom line during FY 2023 alone, which is now underway, with a $1.1 billion benefit in Q1.
The reason I posted this is because it can help understand negotiations. You can drive down the price if you have insight into their operating costs. Cloud companies operating on scale can definitely improve their bottom line on the hardware, by negotiating bigger sweet deals for themselves.
A useful lesson.