Home » Future Ready Enterprise » How to upgrade your IT at a manageable cost
Changing your business for the better through technology is a great end goal. IT-led transformation, of course, costs money and any investment in systems and services needs a strong business case. Budget constraints, however, should not curtail your ability to refresh your systems and services.
A failure to commit to technology upgrades could mean agile competitors leave your business behind. The great news for business decision makers is that an outlay on new IT resources does not have to break the bank. You can pay for IT on your own terms and still produce a big return on investment.
What we will demonstrate is that great partners offer a range of payment structure models to help your organisations finance new IT. What you will discover is that you can afford to feel optimistic about affordable IT solutions. The basic fact is that a future-ready business model does not cost the Earth.
Your business has systems and services that work. You might be operating in a cost-constrained environment, such as the public sector, where an outlay on new capital is tough to justify. In such circumstances, it might seem as if the best idea is to sweat your existing assets.
While some balance of old and new is always sensible, an over-reliance an old kit is likely to lead to issues in the long term. Organisations – even those that are under severe cost pressure – must to continue to invest.
Organisations that fail to invest in IT updates risk losing a competitive edge. Smart CEOs already recognise that technology underlies all modern business operations. Gartner’s 2016 CEO survey shows half of global bosses expect their industries to be substantially transformed by digital technology.
There is, however, a considerable challenge. While board room executives now recognise the significance of digital disruption, they do not necessarily see the value in buying new information technology. IDC research suggests 60 per cent of IT managers believe that their budgets will either decrease or stay the same.
A recent survey from recruitment specialist Harvey Nash and consultant KPMG suggests that a large proportion of the CIO role, much of the role is still rooted in cost management. The global research suggests about a third (37 per cent) of CEOs are most interested in using IT as a cost-saving tool.
Business decision makers looking to secure funding for new IT investments most demonstrate how technology upgrades can be completed efficiently and cost effectively. By using innovative payment plans, including leasing, your business can control the total cost of ownership and make itself future-ready.
The key for business decision makers is to recognise that an IT upgrade does not need to involve a huge upheaval and massive upfront cost. Value is the imperative. Business decision makers must pay for IT in their own terms across the entire technology lifecycle, from acquisition, to deployment and onto maintenance and eventual refresh.
An operating lease, for example, allows you to update technology regularly, when your business is ready and at a reduced total cost. Remember that in many cases, it no longer makes good business sense to own technology – leasing two generations of x86 servers over six years, for example, costs 32 per cent less than buying one server and keeping it for six years.
OpenScale payment solutions will allow you reduce the total cost of ownership, turning attractive projects into affordable investments. Look for a partner that allows you to develop financing solutions that allow your business to defer payments to align with refresh plans and expected financial returns.
Modern businesses must be agile, but this sense of flexibility is more than just a commitment to digital technology. Your commitment to agility should extend to every aspect of the business, including IT payment models. By taking a more agile approach to financing, your organisation can afford to source new IT now.
To find out how Dell Financial Services (DFS) can unlock your business’ potential, click here.
Gartner CEO research: http://www.gartner.com/newsroom/id/3287617
Harvey Nash research: http://www.hnkpmgciosurvey.com