It was once normal for organizations to own most or all of their IT assets. However, throughout the 2010s, less affordable equipment prices, combined with tighter IT budgets and faster product upgrade cycles, spurred a shift away from on-premises hardware and software toward more flexible, economical alternatives — namely, cloud services and leasing solutions.
The Federal Reserve has charted trends in high-tech equipment investment by businesses since the 1970s. It found that although such purchases were historically important to economic recoveries and expansions in labor productivity, they have been less impactful this decade due to slower than expected vendor price declines. In other words, buying IT gear outright isn’t as good a deal as it used to be.
That seems like bad news for any organization looking to compete in any realm from customer service to finance, since competitiveness requires access to a modern, cloud-enabled IT infrastructure. Fortunately, leasing provides a viable alternative route to the cloud, with substantial benefits such as:
1. Rapid Refreshes for IT
Imagine you have sunk six figures into new IT systems for your business, putting you at the technological cutting-edge. In just a few years’ time, though, you’ll likely face a tough decision between either holding onto already outdated tech (with all its accompanying security and performance risks) or disposing of it for something new — a potentially expensive swap that can detract from the value of your hybrid or private cloud deployment.
With leasing programs from LaSalle Solutions, you don’t have to get stuck in this conundrum. Instead, you can quickly turn around your equipment, stay current and be free of complications hidden in the fine print. We offer automatic refresh cycles matching lease terms to each product’s useful life, enabling more cost-effective lifecycle asset management for your cloud.
2. Fewer Equipment-Related Costs and Concerns
Leasing gives you access to the same equipment you could buy upfront with the freedom to update your technology when you need to, without disrupting cash flow.
Since you have access to such rapid equipment turnover, you can also reduce your exposure to potentially pricey maintenance on assets no longer covered by limited year warranties. Cloud-based information management tools such as LaSalle’s LAMP platform further streamline your lease oversight by giving you visibility into maintenance contracts, as well as timely reports and notifications to help you plan ahead and make informed decisions about equipment-related strategies.
3. Better Security and Energy Efficiency
By keeping IT up-to-date at a sustainable cost, you gain additional benefits beyond just easier-to-maintain equipment and more economical cloud infrastructure:
- You mitigate the dangers of cyberattacks exploiting flaws in outdated systems. For example, recent ransomware strains such as WannaCry and NotPetya were designed to take advantage of an old version of the MIcrosoft Windows Server Message Block protocol.
- You might also trim your expenses on essentials such as electricity along the way, since newer equipment is generally more energy-efficient. At the very least, your frequent refreshes and access to LAMP should allow you to spot and remove zombie assets that are consuming power while adding little or no usable resources.
At LaSalle, we’re your guide as you look for a leasing strategy that puts you on the best track to the cloud and to more adaptive operations. Learn more on our main Leasing page today.