Turn on your radio and you’ll probably hear about it within the first two (2) commercial breaks—Heavens to Betsy, why are you buying instead of leasing? Radio-wise, they’re probably talking about automobiles. But in many industries, decision makers are asking themselves that very same question. Information technology is no exception, but why would it be? The cost to stay relevant from a technological standpoint, especially if you’re digitally transforming your infrastructure to drive business initiatives and shape the future of your organization, takes a wad of cash. Leasing can take care of that.
Following are some of the benefits your company can enjoy if you’re trying to determine whether leasing network equipment is the way to go.
In technology, what’s great today can be tomorrow’s afterthought. It changes so fast, and the need to stay technologically relevant is critical to the success of any organization. And with digital transformation, it’s no longer about simply providing high-speed Internet and connecting offices with an MPLS network. It’s about transforming data centers, hyperconvergence, composable infrastructures, storage solutions, cloud migrations, blending DevOps with cloud strategies, etc. The list is seemingly endless, and will certainly seem so if you’re trying to budget for any, or all, of the aforementioned technologies.
Leasing equipment can help ensure you’re implementing network assets that will keep your digital transformation journey progressing down the track. And the ability to utilize the latest and greatest technologies is, according to a 2005 study by the Equipment Leasing Association, the number one (1) reason companies turn to leasing. Concerns about technological obsolescence are taken off your shoulders and transferred to the lessor’s.
It’s probably a word that doesn’t bring a smile to your face, but setting budgets and adhering to them is the kind of stuff that keeps finance departments up at night. Leasing equipment provides a set, predictable expense you can count on. It moves spending from the CapEx to the OpEx bucket, and does so without upfront costs. And low, or no, upfront costs mean more cash flow.
In technology, purchasing equipment means you’re probably planning on utilizing it for a long time, otherwise you won’t get to enjoy the tax benefits that listing it as a depreciating asset provide. But, again, technology changes. It requires careful consideration, along with loads of dough, to pull the trigger on purchasing it.
Leasing, especially for small businesses, allows them to stay competitive in the marketplace. But that’s not to say it won’t provide the same for larger corporations. Keeping up with your competitors
―and hopefully surpassing them―without the financial burden of purchasing equipment can be a significant short- and long-term boon for your business.
As previously mentioned, leasing equipment doesn’t require deep pockets to foot the upfront costs required for ownership. In many cases, there are zero (0) upfront costs, especially regarding the IT industry (automobile leases don’t share the same philosophy).
This is not to say that equipment ownership doesn’t provide benefits, as well, but leasing it in today’s digital transformation world is a cash-friendly, predictable-payment way to ensure your organization doesn’t get left behind.
Want to learn more about how leasing can help pave your road to digital transformation? Talk to these experts
GDT Financial Services provides customers with full-service financial solutions for IT products, services and solutions. They’ve structured leasing arrangements that have met the needs of companies large and small, and from a variety of industries. For information about how they can help financially guide you on your digital transformation journey, contact them at firstname.lastname@example.org. They’d love to hear from you.