Is it better to buy or lease IT hardware? It can be a dilemma for any company.
Buying gives you more control over your IT assets and can allow faster purchasing and maintenance. Leasing keeps your hardware up to date, creates predictable expenses, and helps you keep pace with competitors.
Over the years, we’ve fielded a number of questions about buying and leasing and have helped organizations work through the pros and cons for their employees and business. In some cases, the path is clear: Leasing can make more sense than buying.
If any of the following situations look familiar, your company should take a closer look at your leasing options – they may be your best bet. Continue Reading…
We’ve all heard of car leases, but you might not know about IT hardware leases. But you should. Especially if your employees are stuck with Model T hardware you bought outright when they could be using a leased Tesla.
Few organizations take advantage of leases for their devices’ whole lifecycles. Servers, desktops, and tablets age quickly, and often there’s just not enough money in IT’s budget to replace them. Instead of leasing or replacing laptops with the newest processors and more storage, companies keep devices whose value declines every day as they grow frustratingly slow to work on.
For a company in this situation, leasing IT hardware might be a good option as it can establish a schedule for hardware replacement at a known cost. Plus, employees should benefit by working on modern devices with better processors and storage and that run the latest operating system.
Many organizations don’t take advantage of hardware leasing because it’s still a bit unknown to them. Others just need a refresher on how it all works – some may remember Xerox leasing its copy machines. Some may be thinking about leasing hardware, but have reservations about the process.
We rounded up the six questions we hear most often about leasing IT hardware, and provide below a clear view into how hardware leasing works and what you need to know before, during, and after a lease. Continue Reading…
Purchasing new hardware or software can be a costly and burdensome investment for even the most profitable organizations. But purchasing outright isn’t a company’s only option. Organizations can lease hardware and finance software and maintenance to ease upfront costs and increase IT flexibility. So before you sign that check for your next big order of desktops, servers, or software, see if any of these options are right for you.
The two types of hardware leasing
Leasing is the most common way to acquire IT equipment without paying for it up front. There are two main types of leases: the fair market value (FMV) lease and the $1 buyout lease.
The most common type of hardware lease is the FMV. It’s similar to a car lease, in that you don’t own the product at the end of the term, which is typically two to three years. In an industry known for a 36-month product lifecycle, this is a compelling benefit. The greatest part of IT is that the power keeps going up and the price keeps going down. FMV leases offer the lowest payment option since you’re only paying for the use of the product, not the purchase price. Payments are usually referred to as rent. Continue Reading…
SHI doesn’t just have one of the best selections of hardware and software in the business; we also have one of the best and most flexible financing and leasing programs. Sometimes we don’t do as good a job as maybe we should promoting the fact that we can finance your purchases of software, desktops and notebooks, mobile devices, storage, networking products, and a wide range of other solutions.
With interest rates at all-time lows, financing your purchase of hardware and software has never been easier, or more economical. It’s as easy as 1-2-3.
- Talk to your SHI representative about the financing options that are available to you.
- Settle on the terms of the financing contract, and choose a payment structure (quarterly, monthly, yearly, etc.).
- Sign on the dotted line, and away you go!
What kinds of deals can you finance?
- Large or multi-year software deals: If a big project comes along, it’s in your best interest to spread the payments out over time. Many software publishers are now selling multi-year terms that allow organizations to use SHI financing and make annual payments.
- Hardware deals: As technology power goes up and the price goes down, it is logical to lease. Financing lets you more cost-effectively refresh your technology to ensure your organization is always using cutting-edge technology.
- Surprise requirements: This includes your non-budgeted items, perhaps license compliance issues or end-of-quarter purchases. SHI financing allows organizations to spread out payment of these purchases over time, or even defer them. Continue Reading…