The IT asset management in companies are often problematic. Hardware and software are evolving at an incredible rate and machines are quickly becoming obsolete. The maintenance of computer equipment is very resource-intensive (human). Equipment changes quickly become a headache and a financial drain for most organizations. It’s only logical that IT rental should come as an interesting and increasingly popular solution. But is that really the case? This is what we will try to decipher in this article….
IT leasing advantages
First and not the least advantage: the price
This is the first question that comes first to mind for IT and financial managers. In the short term, renting IT equipment is less expensive, but it is especially from an accounting point of view that it becomes advantageous.
Indeed, there is no depreciation, which makes it possible to generate cash for other investments (R&D, personnel, etc.).
In addition, the rental can be tax deductible and the costs of maintaining the IT infrastructure can also be deducted, as IT equipment is often subject to failure or malfunction problems.
Second advantage: the latest generation of equipment
According to a study by WiPro Product Strategy and Services, the lifetime of a PC is 3 years. This leaves the company two choices:
- Either the company changes its IT equipment every three years and it quickly becomes expensive, or even impossible to manage from a logistical point of view.
- Either the company keeps its equipment but risks being confronted with computers that are too obsolete and inefficient. The risk: the latest software versions may not work well on the machines. It is complicated to follow software developments that are increasingly consuming hardware resources.
This is where rental makes sense because it allows you to benefit from the latest generation of equipment without requiring significant investments at fixed periods.
Indeed, it is enough to take a 3-year rental contract and renew it. In addition, a rental model, with monthly invoicing for example, helps to control costs.
Third advantage: homogeneity of the IT infrastructure
The rental of IT equipment allows a homogeneity of its equipment. This is a significant advantage for the company: the IT department manages a homogeneous IT infrastructure, avoids software incompatibility and facilitates support.
A heterogeneous IT infrastructure is often more prone to security problems. Indeed, an unupdated desktop can experience failures and contaminate the computer equipment, which can considerably slow down the company’s activity.
Fourth advantage: advice and assistance
With the rental of IT equipment, the company can sometimes relieve itself of the management of its infrastructures, which requires time and technical skills.
It is an all-in-one package that some providers offer. This relieves the IT department. The maintenance of the IT infrastructure is managed by an external service provider, an expert in its field. Outsourcing is attracting more and more large groups.
The disadvantages of computer rental
First disadvantage: duration and clause of the contractA computer equipment rental contract commits the company to a long-term vision. The average terms of these contracts range from 3 to 5 years and depending on the clauses, it is sometimes impossible to change in the process. The solution is to study in advance all the factors encompassing the proposed offer such as:
- The duration of the contract
- The clauses
- The company’s performance needs
- The quality of the offer and service of the rental