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Rethink IT purchasing and free up your cash flow

Rethink IT purchasing and free up your cash flow

Having the right tech for your business is increasingly important to remaining responsive, agile and competitive.

In fact, these days the right tech can make or break a business. But with technology constantly evolving, keeping up with the latest technology trends can be difficult, especially considering that new acquisitions begin to date as soon as they’re out of the box. This is an issue all businesses face, from the largest corporations to the smallest of home businesses.

However, the rise of ‘as-a-service’ offerings, like Cisco Start, are changing the way businesses think about, purchase and manage their IT. No longer do businesses have to fork out for specific equipment: oftentimes, the equipment can be used on an as-needs basis, or paid for monthly by subscription or other financing options.

The benefits to business of shifting to this strategy, especially SMBs, are significant. Switching your IT acquisition model from capital expenditure to operational expenditure means you can free up cash that otherwise would have been lumped into one IT purchase and spread it over time. This cash can be used to invest in other areas of the business and allows for easier long-term budget forecasting.

The OpEx IT model is also great for SMBs that don’t have specific IT expertise in-house (around one third of small to medium businesses, according to Cisco research*). Constant upgrades are a major frustration of SMB owners and managers. Treating IT as an operating expense and finding alternative solutions to equipment purchases (such as cloud-based services or leasing hardware) can save many SMBs the confusion and frustration of trying to manage an IT department without dedicated staff.

For example, a business that leases its IT equipment knows that at the end of the lease, it can upgrade to the latest models without having an additional cash outlay and without having to research and stay ahead of tech developments. Instead of holding on to outdated equipment for longer than it should, the business can simply swap old for new and get on with things.

In fact, financing and leasing options provide SMBs with a greater opportunity to embrace new technologies as they develop. Industries such as security, medical and hospitality have been quick to take up the benefits of digitising. Electronic and online menus, multiple transaction options, increasing use of cameras and remote collaboration software are all extending the boundaries of how these sectors function. Demand for new technology, to be deployed as needed, has driven a spike in demand and uptake of leasing equipment in these sectors. Other industries are set to follow as more businesses recognise the advantages to be gained from consumption-based models.

The two major IT worries of SMBs are cost and constant upgrades. Leasing is a solution that ticks both of those boxes. Cisco’s easylease solution provides simple finance arrangements so businesses can acquire the equipment they need, when they need it. It’s simple and flexible and lease terms range from 24 to 60 months, meaning businesses can forecast their budget and plan for upgrades. Easylease has small and medium-sized businesses in mind, facilitating transactions of between $5,000 and $500,000. It’s financing made easy!

What’s more, easylease covers all aspects of an IT solution, including software, hardware and services, allowing businesses to embrace a total IT solution, instead of buying individual pieces one at a time.

Learn more about the benefits of easylease covers and how to your business can utilise the solution.

*Cisco SMB Custom Research – June 2017

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