The more you spend with us, the less you spend in general
It makes sense to plan a regular technology refresh, but it’s important that you get the best value from your budget.
Let’s say you’ve evaluated your technology options and you’ve made your choice. You may think that’s the most important decision and the hard part is over, right? Wrong. Deciding what to buy is only half the battle. It’s now time to decide how to buy the solution.
Organizations often ask themselves the obvious question: what do I buy? But so often, they overlook an equally important question: how should I buy?
There are three ways you can choose to pay for your new technology. Two you are very familiar with; buying and leasing. Both are legitimate options, there is also a third option that operates as a termed rental agreement called Technology Equipment-as-a-Service.
Traditional Capital Expenditure
Truth be told, cash is always an option. This means paying cash or getting a loan and making payments to your lender. When you acquire equipment through capital spending, you own it, plain and simple. Through your up-front investment, you have total control over its use, location, and disposition. Traditionally, there are two significant benefits of CapEx:
- Your company will own the product outright, so you can alter and tweak it as you need.
- Once owned, you don’t continue paying for it.
There’s a common misconception among customers that cash is king and is the way to go when purchasing technology equipment. However, before you jump to the cash conclusion, you might want to consider a few things:
- Technology depreciates at a breakneck pace, even faster than a new car.
- Borrowing from the bank dries out your credit line that you may need down the road.
- Due to the Time Value of Money, money in hand today is worth more than in the future.
The leasing option is ideal for customers who know from the get go that they intend to own the leased solution at the end of term.
Purchasing on a lease allows you to pay as your go, on a monthly or quarterly basis. This can free up budget dollars for more bottom line revenue producing projects. With a lease, your risk of getting caught with obsolete technology is lower because you can build upgrades and add-ons into the lease.
Operationalizing Capital Expenditures
Plow Networks also offers technology equipment-as-a-service, which is a monthly payment option that works like a termed rental for all of your technology solutions. It future-proofs your technology equipment and ensures that you will always enjoy the best that technology has to offer.
Designed as a termed rental, technology equipment-as-a-service allows for a manageable OPEX monthly payment for your technology needs. It is different than cash, bank loans, or traditional leasing like a $1 buyout lease and is designed with businesses and organizations in mind to give them more control, flexibility, and protection.
- Solution Replacement Guarantee
- Act of God Coverage
- The OPEX Benefit