Utilizing Leasing for Technology Acquisitions

With the recent IBM Power 10 and FlashSystem Storage announcements, IT departments have been evaluating their installed technology assets, reviewing hardware budgets, and determining when they can upgrade their systems based on their technology lifecycle.  In many cases, current budgets impact making new acquisition decisions at the optimum time.  This may not always be necessary since there are attractive leasing options to keep cash resources for other needs and spread the payments for new equipment, software, and services of the equipment over the use period.

For companies considering a leasing alternative, iTech Solutions provides a terrific choice utilizing IBM Financial Services, with its vast financial resources, competitive lease rates, and ability to structure a lease to suit a particular client and their situation.

Leasing provides a terrific way to avoid upfront capital expenditure and pay for new assets over a period of time.

The main reason for choosing to lease is to conserve cash or to maintain asset flexibility. Some companies have a pre-determined period of useful life for the equipment or know that they will want to refresh their technology every X number of years.  For these customers, Fair Market Lease (FMV) is appropriate, where the client only pays for the use of the equipment during the specific term in exchange for lower payments. Clients who expect to anticipate a longer useful life of the equipment would likely choose a Full Payout or $1 Buyout Lease, which allows them to retain the hardware at the end of the lease term.

With either choice, the client benefits from not utilizing the organization’s capital to support its technology infrastructure so that it may be better utilized to invest in other areas of the business.

Depending on the Customer’s situation and specific request, there is quite a bit of flexibility that can be offered.  Typically, leases are structured as lease value divided by term.  However, if the client needs to suspend a number of payments in the beginning or have quarterly payments, these requests can be accommodated as well.

iTech Solutions is well versed in understanding a client’s financial needs and working with IBM Financial Services to provide the best solution.  Speak to your Account Manager regarding leasing alternatives and they can provide a lease quote for your consideration when next reviewing your next System or Storage proposal.

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