Anybody involved in procurement should be looking at the cost reducing benefits of renting over outright buying when it comes to ICT equipment and software.

Possessing your own equipment brings with it many disadvantages that leasing doesn’t. When you own all of your hardware it’s worthwhile tracking its value and depreciation with depreciation software. The value goes down but you’re still required to declare it for tax and insurance, fixed asset management software can create an exhaustive database of where everything is located, how much it’s valued at and the dates licenses expire, when they need servicing etc. but renting from some-one else takes all that grind off your hands.

As well as offering you cost benefits on outlay and initial investment, hiring equipment future-proofs your office as you aren’t stuck with outmoded equipment that you can’t get rid of should there be a shift in your requirements. If you need to put through a major change in your ICT provision then leasing can be a more economic solution than an outright purchase. The futureproof advantage fulfils itself when you can give the equipment back at the end of the fixed term of your contract and get an office re-fit without having to worry about disposal or resale of your old hardware.

Having access to the newest hard and software isn’t just about prestige, renewing your equipment means that you’ll have the fastest running machines possible and you’ll always be ahead of the curve on technological developments. One of the latest IT developments which show how economic renting is is the migration to the cloud that so many businesses are undergoing at the moment. If you purchased your own hubs and data storage equipment you’ll be loath to go to the cloud as it’ll mean that you have rooms full of hardware that you don’t need and may very well have trouble getting rid of to anyone but a recycling firm who’ll bill you for the pleasure of taking it away. If you had rented it all you’d have to do is wait for the fixed term to expire and send it back, then use your cab room for more productive equipment, say, a pool table or gym!

When you hire hardware your provider will have a lease management system that gives you flexibility in thinking and purchasing. If your ICT budget is X per annum you might buy up some deals in April and find that you’ve blown the budget on assets that never get used while you need to find cash for other contingencies you hadn’t foreseen. Renting means that you’ll be able to hire the same goods and still have money over for those contingencies as well as being able to return any unused, unnecessary purchases you thought you weren’t going to be able to live without.