These days, there are certain items we wouldn’t dream of buying outright. Few of us can stretch to buying a car without finance and for many, even upgrading to a new smartphone means spreading the cost with a credit agreement or payment plan.
So why should buying IT equipment for your business be any different? Subscription based IT procurement has well and truly made its mark on the business world, as more and more organisations discover the benefits of leasing, rather than buying, the devices they need.
One of the main plus points of a subscription-based IT plan is that is an operational expense or expenditure – or opex – rather than a capital expense (capex).
What is an Opex?
Just like a car finance plan, an operational expense (opex) is one that is payable over an extended timeframe, usually through regular monthly payments. The idea is that operational expenses are necessary for running a business on a daily basis, which is why it makes sense for the cost and any associated tax relief to be spread over time.
Conversely, a capital expense (capex) is paid upfront at the point of purchase, in one single outlay. Any tax relief that a business is entitled to with a capex is applied at this point too.
Until recent years, a business needing to equip itself with new IT hardware would have had to buy them outright, which made IT procurement a capex. Now though, it’s becoming increasingly popular for businesses to spread the cost of new hardware with an opex-friendly subscription-based IT lease. Today, these leasing plans are often known as ‘as a service’ models, for example, like our Device as a Service (DaaS) subscription, Devices for Teams.
DaaS subscription models are designed to enable easy and affordable IT procurement, within which businesses pay a standard, pre-agreed price per month to lease the devices they need. Opex friendly payments tend to be easier and quicker to get approval for too, so your business can be up and running with its new devices in no time.
The Benefits of Opex Friendly Subscriptions
The following are just a few of the other advantages of opex friendly IT leasing over buying IT equipment outright.
Opex friendly subscriptions enable you to avoid IT obsolescence
When you buy something upfront and outright, it’s yours to own – which can only be a good thing, right? Well, not always.
When it comes to tech that develops quickly, owning hardware outright can actually make it time-consuming and expensive to access the devices that keep your business competitive. IT manufacturers are always working on the next generation of laptop, desktop or tablet, so investing completely at any single point in time will soon mean that your hardware is out of date, with the only way to upgrade it to once again invest heavily in a new set of devices. It’s a very expensive way to procure IT.
On the other hand, with a subscription based DaaS model, your business would only be leasing hardware, which means you can swap it for something newer without having to buy it. With Devices for Teams, you can upgrade any or all devices after just 12 months, so you’ll always have super-new, high-performing IT without a hefty price tag.
Opex friendly subscriptions give you cashflow control
Like any payment plan, a DaaS subscription such as Devices for Teams is based on standard payments that are the same every month, so you know exactly what you will be paying at any time. And, as you can return any device you no longer need at any time in the plan, you will only ever pay for what you use.
This payment predictability allows you to budget effectively and invest money steadily back into your business, in contrast with a large upfront capex that can eat into an organisation’s capital and leave it struggling, especially in its early days.
A Devices for Teams subscription is designed to flex alongside a business’s changing needs, so if you need to return devices, or add more to your plan, you can. Your payment plan will of course adjust to allow for this, but only once you’re happy with the changes. What’s more, you can end the agreement at any time after 24 months, so if DaaS no longer makes sense for your business, it’s easy to change up your IT procurement.
Opex friendly subscriptions come with in-built support and maintenance
When your business buys IT equipment outright, it’s up to you to set it up, keep it working as it should and fix any issues that crop up. Unless you pay for a separate insurance or tech cover plan, you could be left without the IT you need if and when a device stops working.
With a DaaS subscription, you only ever lease your devices, which means that your IT provider is there to help you keep them in tip-top condition for the duration of your agreement.
Devices for Teams DaaS from HardSoft
Devices for Teams from HardSoft comes with a three-year warranty and tech support on every device you lease, plus a telephone support helpdesk during business hours. As well as options for onsite or remote diagnosis and fault repair, we can configure your devices for you to help you get up and running. We can even train your team to use their new tech if required.
Ready to make the switch to an Opex friendly IT subscription? If so, give our friendly team a call today on 020 7111 1643 or email firstname.lastname@example.org.