Miller needs to minimize his cash outflow while the company runs on venture capital. He expects the company will have revenue long before the equipment is paid for, and he points out that, presumably, a company's value increases as it gets close to delivering its first product. As the value increases, the number of shares that a company must relinquish to obtain a given amount of venture capital decreases, meaning the cost of capital itself decreases over time. Thus, as time goes on, Astral Point will be paying for the equipment with less expensive money. ArrowPoint took a different approach to obtaining test equipment.
Hickey often needs the fastest oscilloscope available for troubleshooting the company's product.
If he were to buy an oscilloscope, he would be stuck with a model that won't be fast enough for his needs next year. Hickey also recommends renting equipment when you'll need it for just a short time. You'll minimize total cost. Hickey rents spectrum analyzers monthly for measuring spectral components of signals like clock jitter, but he doesn't use a spectrum analyzer every day, so purchasing one doesn't make sense. The company buys small items such as meters.