Device Refresh Programmes - The Challenge
More than £33m is spent annually on IT hardware - and even more hours trying to identify just how and when to embark on device refresh - whether that's individual PCs, laptops and mobiles, or a company-wide programme.
Replace hardware too early, and ROI is impacted, along with productivity as new devices are introduced. Sweat the assets too long, and costs of repair and maintenance begin to soar, along with tempers and frustrations as unreliable, outdated devices begin to affect effective working and collaboration.
Time For Change - The Rise and Rise of Mobile Devices
Business critical assets are no longer the PCs tucked safely under desks, powered down at night and at weekends. Today's devices are the foot soldiers in an always on, 24 x 7 business environment, running power hungry applications, updating in real time to cloud based platforms and constantly ready to repel cyber attacks. The revolution in the workplace environment demands a new approach to infrastructure and provisioning. The future is mobile, and business IT strategy must be ready to meet the requirements of a commercial environment that calls for unprecedented agility from its people.
More Mobile, Less Durable
There is however a cost to pay for the increase in agility and versatility afforded by lighter, more mobile workforce friendly devices - and that's longevity.
Return On Investment - Understanding Cost and Value
ROI is fundamental to any expenditure. There is a significant challenge in gauging the potential ROI of even one replaced device, let alone an entire refresh programme - and that's having an accurate view of the costs - and the value - of the device over its entire life cycle. Factored into the equation is:
- Purchase Price
- Software upgrades
- Hardware & software maintenance
- Extending outdated warranties
- Resale value
- Productivity Gains/ Losses
Device Refresh Planning
There are a number of options
- Retain devices for as long as they continue to function
- Support a BYOD policy
- Instigate and Maintain Rigorous Asset Life Cycle Management Processes
- Switch to a Lease Procurement Model
Why Switch to a Lease Procurement Model?
With the possibility of leasing devices, over a 24 month term, for less than the total cost of ownership when purchased outright, leasing is becoming an increasingly popular option. Benefits include:
- Transfer cost of obsolescence
- Predictable Expenditure and Greater Cash Flow Control
- Easy Disposal and Secure Data Erasure
What Happens When The Lease Is Up
After two years you’ll be able to upgrade to a new device. There’s no renewal fee, no end of lease fee, and you’ll have a choice of the latest models and devices. Any data on your original device will be erased securely. If you want to upgrade before the lease is up, this is usually possible. Termination fees may apply, which may be rolled into your next lease agreement.
At the end of the lease term, you may want to opt to keep your device, at a fair market value.
You’ll be contacted in good time, to ensure any data is securely migrated off the existing device. Your device will then be securely erased in accordance with WEEE regulations, and a certificate issued. There’s no end of lease fee to pay.
It's clearly an ongoing challenge to strike the right balance between the direct costs associated with a hardware upgrade programme and the overall, less tangible value that newer, more mobile and secure devices offer.
Download the full report to find out more, or contact our Device Leasing Specialists for a quote.