It is no secret that hardware and IT costs are a large part of a company’s budget. Hardware purchases are well thought out and researched before any action is taken and here at Velocity Tech Solutions we want to ensure that our customers have the information and means to get the products that they want and the products that best fit their technical and financial needs.
Buying Your Hardware: A Capital Expense
One option that your company has is to fully purchase your hardware and hold it as a fixed asset for the upcoming years. Purchasing your hardware flat out is considered a capital expense, an expense that is used over multiple years and depreciates in value over the course of time. When hardware is purchased it is possible to resell it or trade it in at a much lower value.
Buying hardware is a good option for companies that are not looking to update their infrastructure at a rapid pace and typically hold their hardware for more than a few years before upgrading.
Now, buying your hardware does not have to be an astronomical expense, especially when you are looking at refurbished options, if you are unfamiliar with the benefits of refurbished, please read, Buying Refurbished Hardware: The Economical, Reliable, and Overall Smart Choice.
Leasing Your Hardware: An Operational Expense
The other option for obtaining your companies hardware needs is to lease it. Leasing is considered an operational expense, an expense that helps run the company on a day to day basis. In addition, operational expenditures are tax-deductible in the year that they are made. The beauty of leasing is that it allows your company to get the server that they need for a set amount of time at a set expense rate with the option to upgrade the hardware after the term is over.
Many companies, like Velocity Tech Solutions, offer flexible terms to customers that opt to lease. This option lets you craft your solution with the next few years in mind and then re-evaluate in order to keep up with your current industry trends, needs, and technologies.
This is beneficial in industries that require frequent updates, upgrades, and changes in technological need.
Velocity Tech Solutions can help you buy your hardware at a reasonable cost with the help of our solutions specialists as well as offer maintenance support or we can help you set up flexible leasing terms for your current needs. Whichever choice is best for your company, call Velocity Tech Solutions at (888) 784-2088 or (651) 633-0095, we are here to help every step of the way.