Every company needs IT and data center equipment to keep them up and running smoothly, and it is a costly but necessary expense. So when it comes to buying vs. renting new IT equipment for your company, there are many pros and cons that need to be considered.
If you’re not sure which is the best option for your business, this article will give you some insight into what might be your best bet.
Renting IT Equipment
Companies that rent or lease IT equipment pay a monthly fee for the duration of their contract. They can upgrade equipment at any time and have access to more options, so they can save money in case an older piece of hardware breaks down.
Pros of Renting or Leasing
The monthly fee for renting or leasing IT equipment is a lot less than the initial cost of buying new. One way to avoid paying for things you don’t need, which would increase your expenses in the long run, is by not purchasing unnecessary hardware and software. IT equipment can be upgraded at any time without adding investment that you could have avoided in the first place.
For example, let’s say a company is using an old printer but needs to upgrade to a newer model because it’s more expensive to repair than replace. Then they would need to pay for both the new printer and the cost of sending their employee back out on site with all of its equipment so they can set it up.
The monthly fee is generally for the duration of your contract, so you will know exactly what to expect and can plan accordingly from when you start renting or leasing equipment until it expires. There are also cases where companies that lease IT equipment have different contracts that allow them to upgrade more often than buy new.
If a company wants to rent or lease IT equipment, they can usually negotiate the length of their contract. This is especially helpful for companies who may not know precisely when they will need all of this hardware and software yet but want to make sure that it’s available when needed.
Some rental agreements also include repairs and maintenance on the equipment, which is helpful for companies who don’t want to worry about that.
Cons of Renting or Leasing
Renting or leasing IT equipment does require a contract, which means that if you want to terminate the agreement early and stop paying for it, there are specific terms in your lease about how much notice you will need before canceling.
Generally speaking, companies who rent or lease IT equipment can’t customize their contracts as they please. So, for example, if a company wants to upgrade its hardware every year instead of two years, it would not do that.
Companies who rent or lease IT equipment are also at the mercy of their vendor as far as features go. If your vendor no longer offers a specific type of software but needs it for business purposes, you will be out of luck.
Purchasing IT Equipment
There are several benefits to buying IT equipment. Buying requires a single up-front expense, and you can do as you please with the equipment.
Pros of Purchasing
Purchasing IT equipment is a one-time investment. You will know the cost of your purchase upfront, which means you can plan accordingly and set aside enough money to cover it in advance for any other expenses needed down the line.
Suppose software upgrades or new hardware becomes available in the future, and you want to take advantage of those opportunities. In that case, you can do so by purchasing them outright without having to ask permission.
If the company leases or rents their equipment, it is not as flexible and may be subject to a penalty if they want to terminate early. Purchasing IT equipment does not have these penalties attached, and companies are free to buy what they need when needed.
If a company is purchasing IT equipment, they have the option of customizing their contract. For example, if you know that your printer will break down in two years instead of three, then you can set up a plan to buy new printers every year and save money on repairs as well.
There are other benefits such as making the most of warranties, selling the equipment when you are done with it instead of leasing or renting, and not having to worry about repairs.
Cons of Purchasing
Purchasing IT equipment is a significant investment. If your company does not have the necessary funds to cover this expense, it would require some planning and budgeting to afford that type of expenditure.
If you are purchasing expensive software, there may also be additional agreements or fees associated with these types of purchases as well.
Avail Recovery Can Help
The pros and cons listed here should help you make an informed decision about what is best for your company. Of course, you want to make sure you choose the option that will work out well long term, so it’s essential to consider these factors before deciding.
Avail Recovery can help you with your old and outdated equipment by getting you money back for it if you decide buying is the way to go. Avail also offers hardware trade-in and saving when choosing to buy equipment through us.
Contact Us Today to get a quick quote, our experts are standing by to answer any questions you may have. See why Avail Recovery is the perfect solution for all of your IT needs.