Every building operator faces a recurring strategic question: when does maintaining ageing technology infrastructure become more expensive than replacing it? The instinct to defer capital expenditure is understandable — but it is often based on an incomplete picture of the true cost of operating aged systems.
The Hidden Cost Accumulation
AV and building technology infrastructure older than 7–10 years typically exhibits a characteristic cost profile: maintenance costs rise gradually in years 6–8, then accelerate sharply in years 9–12 as components begin to fail more frequently and replacement parts become harder to source. By year 12, a system that cost AED 4,650/year to maintain in its first five years may cost AED 16,275–5,000/year — and still generate more downtime.
A Worked Example
Consider a commercial AV infrastructure installed in 2015 at a cost of AED 395,250 covering 12 meeting rooms and two boardrooms. By 2023, maintenance costs have reached AED 33,480/year. Key components — the central matrix switcher and two of the large-format displays — are at end of manufacturer support. Replacement parts must be sourced from third-party suppliers at 2–3× standard pricing, and technical documentation is no longer maintained by the manufacturer.
A replacement system in 2023 would cost approximately AED 441,750. Over five years at current maintenance trends, the cost of operating the existing system would be approximately AED 195,300 in maintenance plus AED 83,700 in unplanned replacements — AED 279,000. A new system would cost AED 441,750 capex, but would carry manufacturer warranty for three years and be maintainable at AED 11,625/year thereafter — a five-year total cost of approximately AED 499,875 against the existing system’s five-year cost of AED 427,800 (plus the residual value of the new system at year five).
The Right Framework
Total cost of ownership modelling over a defined horizon — typically 5 or 10 years — is the only rigorous framework for this decision. If you would like Prysm Edge to conduct a TCO analysis for your technology estate, please contact our Asset Care team.
