Industry Analyst Research

IT Leasing & Financing: Financial and Operational Factors to Consider - IDC

Based on recent surveys and ongoing interaction with IT organizations, IDC believes that many business, financial, and IT leaders have not fully recognized the continuing need and programmatic requirement for IT capital reinvestment, confusing necessary infrastructure expenditures with optional "upgrades." IT lease / financing options provide an important alternative to investment of business capital in IT equipment and software - relatively shortly lived assets. In IDC's view, there are two important and over-riding concepts that should be kept top of mind when preparing technology life cycle analysis and the related lease-versus-buy proforma: (1) The Cost of "Doing Nothing, and (2) value appropriately internal labor costs. Although not the ideal solution for every acquisition, lease / financing and the related lease management service options should be considered during major infrastructure renovations, operational reviews or new technology assessments.