For example, IT departments are consistently and more frequently faced with the challenge of replacing obsolete equipment and software. Expensive IT management costs are increased if new tech is not introduced. Costs for supporting increased service calls associated with maintaining out of date technology is an ongoing challenge. According to the IDC US Leasing and Financing Survey, the two most important factors for IT decision makers related to leasing equipment in the future are; the ability to lease or finance new IT equipment and reducing costs.
Now more than ever, breaking the mold in financing technology makes more sense. Companies are adopting use-based models that allow them to bring new hardware or software into their infrastructure with less risk and more control over costs.
Flexibility and new approaches are needed to keep up
This ever-changing consumption model requires financial offerings to have flexibility for customization and a foundation of customer centricity. Flexibility from an operations perspective as well an upgrade perspective is where decision makers are focusing when making IT investments. One way to minimize risk when making these investments is to partner with dealer or VAR that can offer a variety of financing options at different parts of the supply chain.
Financing software licenses, relieves organizations of the burden of an upfront capital investment on upgrades. Paying for software in installments allows for more accurate budgeting and financial planning. Cloud offerings are also now making it easier to plan, invest and refresh investment focus when making infrastructure spending decisions.
School districts are encouraged to make technology literacy a priority and have
adopted increased use of technology that can facilitate communication within the district, among educators, parents, and students. Conversely, business technology needs and requirements are not the same across companies or industries. Having options is nearly a must in today’s world. That should remain consistent with financing. The ability to develop custom solutions for businesses and their customers is something decision makers now require.
Finding an end-to-end solution
IT Managers are tasked not only with sourcing the proper devices, services and infrastructure equipment, but also maintaining it for users and cycling through upgrades. Financial solutions partners need to offer an end-to-end solution that supports the needs of an organization from procurement through usage, upgrades, and disposal or purchase. IDC research on leasing and financing states more than 50% of IT equipment is returned versus buying or reselling.