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7 Financing Strategies that Facilitate Critical IT Investments.

Posted by Mike Pape - 24 June, 2020

As we’ve noted in recent posts, pandemic-driven economic challenges are forcing both public- and private-sector organizations to reconsider their IT spending priorities. Revenue shortfalls have forced businesses and government agencies alike to put planned initiatives on hold.

Some technology investments are simply unavoidable, however. For example, the sudden need to support organization-wide remote work has made mobility, collaboration and security solutions strategic imperatives.

RMM Solutions can help you address budget conundrums with a variety of creative cost optimization and financing strategies. Here are a few ways we can help you can conserve capital while still funding mission-critical projects:

  • Fair market value (FMV) leases. Also known as an “operating lease” or a “true lease,” an FMV lease is an affordable way to upgrade and update all kinds of business equipment while conserving cash. At the end of the lease, you can either return the equipment, upgrade to new equipment or purchase the equipment at fair market value.
  • $1 buyout leases. Also known as a “capital lease,” this arrangement is similar to purchasing equipment with a loan. It has a higher fixed monthly payment compared to FMV leases but allows the customer to purchase the equipment for only $1 at the end of the lease term. This arrangement also has tax advantages. Under Section 179 of the Internal Revenue Code, customers can deduct the entire cost as a business expense in the first year of purchase.
  • Hardware-as-a-Service (HWaaS). This is a way to pay for hardware and implementation as operational expenditures rather than capital expenditures. Typically, you would make recurring payments over a 12- or 36-month lease. At the end of the lease, you can either purchase the equipment outright, renew the contract or end the agreement.
  • Technology-as-a-Service (TaaS). Rather than a lease, this is a subscription model. You can access hardware, software and services from RMM for a monthly fee. In addition to eliminating capital expenditures, the TaaS model creates terrific flexibility — access to resources can be scaled up or down as needs change over the life of the subscription.
  • Software License Optimization. Problems with license compliance, duplication or expiration can lead to crippling fines, fees and costs. RMM uses a variety of automated and manual solutions to help organizations remain in compliance, eliminate duplicate licenses, provide renewal notifications and identify volume purchasing opportunities.
  • Consolidation and Modernization. Many organizations have underutilized and redundant systems and services that can be consolidated for cost savings. Additionally, organizations often spend a huge chunk of their tech budget to support aging, inefficient IT infrastructure that’s ripe for modernization.
  • Total Cost of Ownership Analysis. By evaluating all the direct and indirect costs of existing IT resources, a TCO analysis can uncover cost savings that enable you to fund projects. Newer equipment may provide greater efficiencies while eliminating the need for costly maintenance contracts on outdated gear.

Budget issues are leading organizations to rethink their IT spending priorities, but they needn’t force you to abandon mission-critical investments. Ongoing technology improvements help build operational efficiency and are essential for long-term resiliency. We’d welcome the opportunity to sit down with you and discuss financing options and budget conservation strategies that can keep your projects on track.

Topics: IT Budget, IT Spending, Virtualization, IT Consolidation

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