As your organization changes, your equipment often stays the same. That can be an issue, especially in a fast-paced domain like IT or a high-stakes one such as healthcare, in which continuous access to up-to-date and reliable infrastructure is critical.
Maintaining the same assets can seem logical in light of the high price tag of upgrading them. The costs of regularly purchasing new assets with cash are indeed considerable — but so are those associated with simply standing pat. It’s a tricky dilemma, yet one that fair refresh programs were virtually tailor-made to solve.
Ownership optional: How technology refresh programs outshine upfront purchases
Why refresh equipment? It’s a simple question with a straightforward answer: It gives you flexibility.
A transparent technology refresh program is your ticket to more manageable costs, more frequent upgrades and greater overall control of lifecycle asset management. Let’s explore the freedom you gain by switching from upfront buying to automatic refresh cycles:
Updates when and where you need them most
IT equipment evolves quickly. A new PC, server or router will depreciate soon after purchase, making it a questionable investment if it’s simply going to be replaced within three years anyway.
With refresh programs, you mitigate the risk of obsolescence. Programs can be structured around your expected upgrade schedule and matched to the expected useful life of the equipment.
This way, you’re not burdened by diminishing utility. Plus, you avoid common issues like not being able to upgrade the operating system, firmware and/or applications of a machine that’s no longer supported.
Related Post: How Often Should You Upgrade Your IT Systems
The steady stream of new assets also ensures you have access to the best available system performance and latest device features, whether that means a faster processor or support for advanced services like software-defined networking.
When you buy equipment with cash on hand or via bond or bank line of credit, there’s significant risk involved. An outright purchase could put pressure on your already constrained cash flow, while financing it can force you to jump through numerous hoops.
In industries like healthcare or materials handling, the financial flexibility of refresh programs helps you maintain steady cash flow while working toward cost reduction objectives. The savings are end-to-end:
- Upfront, you don’t have to worry about fees related to UCC filing, doc handling or yield enhancement, nor do you have to unknowingly lock yourself into costly evergreen clauses.
- Over time, you can save on repairs, replacements and downtime thanks to automatic refresh cycles.
- LaSalle Solutions also offers clear quotes for all equipment, based on fair residual values for on-time returns, renewals and buyouts.
Easy tracking and lifecycle management
Technology asset information management can start simple and rapidly become complex. Keeping track of everything is further complicated by an evolving regulatory landscape. The new FASB rules for lease accounting illustrate the need for full insight into lease-related liabilities.
When you acquire equipment with LaSalle, all of this oversight is highly streamlined. Our cloud-based LAMP platform enables you to search for assets using a wide variety of criteria, including maturity date, schedule and serial number. You can manage multiple vendors and locations, add custom fields and run detailed reports to help with long-term planning.
Technology refresh programs are only as good as the partner providing them. LaSalle is a proven leader in cost-effective equipment acquisition and other solutions customized to each customer’s requirements. Learn more by viewing our main technology refresh programs page today.
Equipment Refresh Solutions
Find out more about how you can keep equipment up-to-date while maintaining cash flow.