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…
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…
If your company has uncovered issues in underlicensing or overspending on software licenses — or even if you just want to be more proactive about IT needs – it’s time to rein in renewal management. Renewals can hit your company throughout the year from various vendors for everything from software maintenance to hardware leases. Even original equipment manufacturer (OEM) warranties eventually expire and create a need for a new warranty or new equipment.
The problem is that many companies fail to track these renewal or expiration dates. When the invoice for a renewal arrives without advance notice, they simply pay it based on their past agreements without stopping to think strategically about current and future needs. The issue is only exacerbated by the adoption of the cloud as perpetual licenses, which have no expiration date, get replaced by subscription and term licenses, which do expire.
By tracking expiration and renewal dates, as well as key dates internal to your company — such as when budgets are set — you can replace the reactive response to renewals with a more proactive stance that will not only potentially save your company money, but equip employees with the tools they need to do their jobs.
With advance warning of impending renewals, IT and procurement can take time to analyze and discuss any renewals, negotiate new agreements, or vet alternative vendors or solutions that better suit the state of your business. For example, your company might need to right size the number of commitments it has, reducing software maintenance to 800 desktops from 1,000.
Here are four points you should consider before renewing: Continue Reading…