5 Advantages of IT Leasing Every CIO Should Know


by XfinAM

Sovereign Systems has partnered with XfinAM to provide financial strategies to enable technology solutions for our customers.

Read their guest blog below offering insights into leasing options: 

5 Advantages of IT Leasing Every CIO Should Know

1. Leasing leverages limited budgets to accelerate project ROI.

With the ability to spread implementation expenses across the life of the project, you can kick off larger, more comprehensive transformative projects instead of small, incremental projects that are easily sidelined over time. What if you could accelerate deployment of new technology across 5 offices instead of just 2? What if you could multiply critical cost reduction through process improvements by implementing an ERP module across multiple divisions in a single year instead of three years, without additional budget allocations?

2. Lease accounting changes don’t change core advantages to leasing.

While some companies have taken advantage of the ‘off-balance sheet’ treatment leases assets have enjoyed in the past – that’s only one of the benefits of financing IT assets. Management control, obsolescence risk reduction, and consistent cost management are still critical leverage points when leasing. The ability to forego large cash outlays for consulting and implementation services can have a significant impact on your company’s cash position.

3. Manage vendor implementations by matching performance with costs.

Like technology, leasing structures have changed as well. The ability to include consulting and implementation costs, and incur those expenses as performance milestones are achieved provides a control mechanism with vendors and assures costs are commensurate with results. We can also scale lease schedules to flex with your business requirements – enabling you implement technology capable of supporting growth within a ‘pay as you grow’ structure.

4. Your company has better things to do with their cash.

While the innovation provided by technology projects is critical to growth, investments in new service offerings, top-tier employees, market expansion and business acquisitions are the real key to growth and appreciation of your company’s value. And while all these activities require technology support, the reality is, IT assets only depreciate over time. Spend cash where the return is appreciating, use leasing as a tool to support the cash investments.

5. Moving to the Cloud is, even more, a reason to leverage leasing strategies.

The Cloud is tethered. While apps and data exist in the Cloud, the personal devices (laptops, mobile) accessing those resources require routers, network connectivity, etcetera to get there. These are devices that require frequent upgrades/replacements and leasing strategies can create a predictable and controlled management process of both costs and assets.


5 Advantages of IT Leasing Every CIO Should Know


Contact us for more information on how we partner with XfinAM to provide financial solutions.