Let me underline that one. Would you believe my main Linux server, which simultaneously routes packets between 3 networks, does the firewalling, handles network printing in two different protocols, provides name service, and occasionally serves as an extra workstation for web browsing and displaying tech manuals, is a Pentium 1 with 32 MB main memory? Not only that, I still read my mail and do network diagnostics on a 486. Yes, Firefox is too bloated to run satisfactorily on a machine that small, but it works just fine on a Pentium 2 with 64 MB.
So an additional branch to investigate is to identify criteria for determining when a needed upgrade requires both new hardware and new software, when satisfactory results can be obtained by replacing only the software, and what are what the costs and benefits of each option.