Schools aren't allowed to save more than a small percentage of their funding each year. If they save any more than that amount, it is taken back (I think it is 5%).
To the OP: We are actually in the situation you describe. The school was a
BSF school, managed service and all. The MSP pulled out of the contract and we now have 3 year old equipment so are trying to plan for that '5 year' mark. Until then, we're tiding over with memory upgrades and migrating to Windows 7 etc...
After then, there is a high possibility that we will go down some form of desktop virtualisation route. The thing is, our building is only 3 years old, yet they put Cat5e in, 100Mbit switches etc... And if we want any cabling done, we have to do it through the building owner at a high cost.
So, for us, the school is going to have to make the best use of what we have for as long as we have, unless someone comes along and hands us a large chunk of capital to spend again.
I also discussed leasing with our business manager and it seems like an ideal solution until you start hearing things like 'falling rolls' and 'funding uncertainty'. So, if we were to sign up to a leasing agreement, we'd end up having a fixed cost for our IT provision, with the potential that our funding won't be fixed.
Somehow, we have to combine this with a desire for more mobile devices within the school.