IT equipment
procurement

IT equipment procurement – impact on your budget and efficiency

IT equipment procurement should be centralized within a company. It should be regulated by a policy and approved by company management. When the purchase is done centrally, it ensures better position for negotiating prices and terms & conditions.

When deciding if to purchase or lease IT equipment (including licenses) you should always keep in mind that IT sector changes rapidly. What is brand new this year can be outdated the next. The intrinsic value of IT systems is achieved by keeping them up to date. As for businesses, the low total cost of ownership (TCO) is the goal. Other important factors when deciding on IT equipment procurement are: payment method, risks, implementation timing, technology obsolescence, asset management and disposal, impact on capital budgets. By careful analysis of your business needs, we recommend which equipment can be leased. See what IBM thinks about it here. See more about leasing versus purchasing here.

We advise that you run cost benefit analyses before deciding on an appropriate IT equipment procurement method. Result of the analysis should help you decide whether you should purchase or lease the IT equipment. Important elements which can help you making the decision are:

  • Equipment price
  • Remaining value of the equipment ( N/A if you decide to lease it)
  • Maintenance costs 
  • Staff costs
  • Procurement costs
  • Disposal costs 

More about cost benefit analysis can be found here

If your IT equipment should last more than 3 years, you should purchase it  - this applies to routers, switches, NAS devices, storage areas, licenses for particular applications. Otherwise, we recommend leasing – this applies to servers, laptops, desktops, tablets, licenses for the operating systems, licenses for MS office, etc...

Manage IT out can help you build standardized IT equipment procurement policy within your company. We will develop the policy taking into account impact on your budget and the highest efficiency for your business.

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IT equipment procurement - lease versus purchase