Desktops, servers, networking equipment, storage and other IT-related needs are often a business’ biggest expenditure. A handful of desktops could cost a few thousand while a major upgrade on the server side could cost hundreds of thousands. Many companies, especially small to medium-sized businesses in San Diego, are weighing the benefits of buying versus leasing hardware.
Why Buy?
Buying equipment is a better choice for ease of execution. See something you want? Buy it outright and you’re good to go. Leasing involves more paperwork, credit checks, submission of financials, negotiation of lease terms and more. Some San Diego IT consultants recommend purchased hardware because it is also fully tax deductible, where lease-related deductions have specific guidelines and limitations.
Why Not Buy?
It sounds obvious but it bears mentioning that buying is expensive. Purchasing new equipment outright may be cost prohibitive, especially for smaller companies who may not have the kind of budget required for a large, one-time outlay of cash. Another strike against buying is obsolescence. Hardware is aging faster and you don’t want to be stuck with expensive, outdated hardware in just three years.
Why Lease?
The biggest benefit realized by leasing computer hardware is its impact on a company’s budget. Instead of a budget-busting, one-time payment, a lease allows for predictable low monthly payments. This allows for more effective budgeting and less initial outlay of funds. Leasing also levels the technology playing field for smaller companies. It’s easy to afford better technology when you’re only paying a reduced monthly expense to a professional managed IT services provider in San Diego.
Why Not Lease?
The downside of leasing is that it can be more expensive in the long run. For example, a $5000 server leased over four years at $130 per month would end up costing $6240 by the end of the lease, over a thousand dollars more than it would have cost purchased up front. Therefore, it’s also important to factor in any other benefits of leasing, such as on-site, remote desktop, or emergency IT support in San Diego.
Buying and leasing computer equipment both have their benefits and drawbacks. The decision to buy or lease depends on a company’s financial and technological needs, and should be made carefully in order to get the right hardware at a cost that works for your business. For more information or a free consultation, call (760) 650-3300 and speak with one of the experienced and trusted IT consultants from Syndeo Communication San Diego.