It is hard to live without them, as they are very important in our personal and professional life.
We are, of course, talking about computers that connect us to our customers, our suppliers, and through which we can work on a daily basis. But when it comes to re-equipping a department or updating its IT fleet, one question always comes up time and time again: should we purchase or pay for IT equipment as-a-service or via a subscription?
It’s a recurring debate, however the answer is simple. Unless you only have a few employees using computers for very basic tasks that do not require any particular updates, an as-a-service model is the best option. We’ll prove it to you.
The final cost
When purchasing, you pay for all your hardware upfront – including VAT. This represents a significant outlay of money, especially when it comes to equipping a full department. While your new IT tools have not yet contributed to creating value, they have already cut into your budget. Once you own them, you will then have to deal with maintenance, repairs and/or upgrades, technical problems, but also data wiping and recycling.
With an as-a-service model, you pay for the use of the equipment over time. After a few years, you can easily upgrade to refresh your estate. A subscription takes into account the residual value of the equipment. When the contract expires, your equipment is collected, data wiped and recycled and new upgraded equipment is installed via a new subscription service. With as-a-service solutions, Total Cost Ownership (TCO) is reduced.
Technological uncertainty and risk of obsolescence
Digital is changing all the time. The loss of value is considerable due to new uses, new technologies and changing needs. When the risk of obsolescence is high, an as-a-service model offers more flexibility.
With purchase, the older the equipment gets, the less efficient it is and the more it will cost you. In the end, you will have no choice but to get rid of it without being able to resell it.
As-a-service contracts are fully flexible to accommodate your changing business needs. You can for example order additional equipment during the course of your subscription or hand back some devices early. When new versions are released you can also refresh your estate with the latest assets halfway through your contract. As-a-service contracts can apply to any digital devices, so you have complete freedom over the brands and suppliers to use.
Hidden risks and costs
With a subscription, there are no hidden costs.
With purchase, the TCO must be integrated into the overall budget. The purchase price of the equipment then often becomes only a fraction of the total price. This is like the submerged part of an iceberg. You also have to include maintenance, training, time lost in purchasing, deployment and implementation, the lost value of obsolete assets, etc.
As-a-service or subscription model is the way to transform your business and future-proof your operations.
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