Year in and year out we are faced with new technological innovations changing the world around us.
While this is great for business, companies face the challenge of constantly needing to update their technology with brand new equipment every few years in order to stay at the top and ahead of competitors.
For businesses that don’t have deep pockets, or those whose capital expenditures take long to approve due to red tape, upgrading to the latest equipment can be a financially challenging process.
For this reason and to weather potential technology disruptions and innovations, technology investments should be flexible.
This means IT departments must rethink and realign their financing models to adapt to the pace of innovation.
If it ain’t broke, don’t fix it
Some businesses are comfortable using the current hardware that they have. If it works fine and employees can go about with their day to day tasks, then they can delay upgrading to modern technologies until there is a budget to do so.
When it comes to technology hardware there are two types of life expectancy to be considered. One of these is the operational life expectancy, and the other is the useful life expectancy.
The operation life expectancy, or lifespan, is simply a measure of how long the hardware will function properly. The useful lifespan looks at how long it will be able to run advanced programs on the market and meet their system specifications.
Technically, you could have equipment that functions “good enough”, but that isn’t very useful with many modern applications. Older equipment simply might not be able to keep up.
While sweating assets might preserve cash reserves in the short term, you risk being left behind as your competitors or future disruptors in your industry take advantage of the technology advancements to improve their business processes and systems.
Protect your IT investment from becoming outdated
To succeed in today’s fast paced world where innovation is driven by technology solutions in either hardware or software, you need to invest in technologies that can grow and change with your business and evolving technology trends to avoid being left with obsolete technologies.
A great way to maintain regular technology upgrades is to lease the IT equipment you need; you enter into a contractual arrangement by which a leasing company or “the lessor” allows you to use state-of-the-art equipment of your choice for a stated period of time.
The benefit of this is that it enables you to keep better pace with improving technology, as the responsibility of keeping your equipment up to date is taken out of your hands, the leasing company takes care of it for you.
Financially it minimizes the expense of your upgrade path, allowing you to conserve working capital, preserve credit lines, and budget better as a result of predetermined instalments.
When it comes to IT and the pace of change, it’s imperative for businesses to consider what possible future technology needs they may have.
The demands for speed, capacity, flexibility, performance and scalability are rising each year. Is your equipment able to scale? Will it become outdated and slow down your efficiency?
When looking at IT asset financing with the future in mind, you will need to consider the following factors to shape your technology roadmap:
- Increase efficiencies – this means having a solution that will protect you from outdated, slow equipment, and which will enable you to accomplish tasks better, easier, and faster.
- Offer scalability – A funding model that provides easier and more affordable ways to meet expansion needs or to accommodate new users.
- Support benefits – A solution that offers you full support and warranty, and an effortless upgrade to brand-new equipment when your current equipment becomes obsolete.
InnoVent’s asset leasing solution
With InnoVent you get all the above and more. InnoVent offers cost effective, scalable leasing solutions to companies and institutions to help them finance and purchase the technology they need to run their business efficiently and keep their equipment up to date.
Their end to end solution will see your technology assets through their entire asset life cycle: from procurement, to maintaining your assets while they are in your environment, and the eventual disposal of those assets with flexible replacement options.
Protect your IT investment with a leasing option from InnoVent and access today the future technologies that will shape your business tomorrow.
This article was published in partnership with InnoVent.