Computer Equipment Rental: Advantages and Disadvantages

Anne Thebaut of Wisper shares the advantages and disadvantages of renting computer equipment.

Managing assets within companies often proves to be problematic; hardware and software are evolving at an incredible speed and technologies are quickly becoming obsolete.

The maintenance of computer equipment is very resource-intensive (requiring human input). Equipment changes quickly become a headache and are financially draining for most organisations. It is only logical, therefore, that rental of IT equipment should come as an interesting and increasingly popular solution.

But is that really the case? This is what we will try to uncover in this article…

IT Leasing Advantages

First Advantage: Price

This is the consideration that first comes to mind for IT and financial managers. In the short term, renting IT equipment is less expensive, but it is from an accounting point of view that it can be particularly advantageous.

Firstly, there is no depreciation, which makes it possible to generate cash for other investments (R&D, personnel, etc.).

Additionally, the rental can be tax deductible and the costs of maintaining the IT infrastructure can also be deducted, as IT equipment can often be subject to failure or malfunction problems.

Second Advantage: The Latest Generation of Equipment

According to a study by WiPro Product Strategy and Services, the lifetime of a PC is three years. This leaves the company with two choices:

• Either the company changes its IT equipment every three years and it quickly becomes expensive, or even impossible to manage, from a logistical point of view.

OR

• The company keeps its equipment but risks being faced with computers that are obsolete and inefficient, meaning that the latest software versions may not work well on the machines. It is complicated to follow software developments that are increasingly consuming hardware resources.

This is where rental makes sense because it allows you to benefit from the latest generation of equipment without requiring significant investments at fixed periods.

In reality, it can be a better fit to take a three-year rental contract and renew it. In addition, a rental model with monthly invoicing, for example, helps to control costs.

Third Advantage: Homogeneity of the IT Infrastructure

Renting IT equipment allows homogeneity of the equipment, a significant advantage for the company. Here, the IT department manages a uniform IT infrastructure, thus avoiding software incompatibility and ensuring support is facilitated.

A heterogeneous IT infrastructure is often more prone to security problems. In reality, a desktop that has not been updated can experience failures and contaminate the computer equipment, leading to a  considerable slowdown of the company’s activity.

Fourth Advantage: Advice and Assistance

By renting their IT equipment, the company can sometimes relieve itself of the management of its infrastructures, which requires time and technical skills.

Some providers offer an all-in-one package, which provides support   for the IT department. The maintenance of the IT infrastructure is managed by an external service provider, an expert in its field. Outsourcing is attracting more and more large groups.

The Disadvantages of Computer Rental

First Disadvantage: Duration and Clause of the Contract

A computer equipment rental contract commits the company to a long-term vision. With an average contract term of between three to five years, depending on the clauses, it can prove difficult to change the options mid contract.

The solution is to research in advance all the factors incorporated in the proposed offer, such as:

• The duration of the contract.
• The clauses.
• The company’s performance needs.
• The quality of the offer and service of the rental.

If the company does not make the right choice, it ends up with a service that could affect productivity.

Second Disadvantage: Return of the Equipment

Once the lease expires, the company must return the equipment it has leased. If users have not taken care of the computers at their disposal, the company will then have to pay compensation for the damage caused to the equipment. The invoice can rise very quickly. Therefore users must be made aware and informed about this subject beforehand.

IT Equipment Rental; an Opportunity to Study

The rental of IT equipment is an interesting solution for companies wishing to benefit from the latest generation of equipment without impacting their cash flow in the short term.

Even if some disadvantages must be taken into account, this solution is nonetheless beneficial in its entirety. Several rental solutions of this type exist.

Author: Wisper