Hardware Leasing vs. Hardware Buying: The Choice Between CAPEX and OPEX

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.

Buying Refurbished Hardware: The Economical, Reliable, and Overall Smart Choice

As a society, we hold a stigma that new products are substantially better than ones that we have had for just a few years. We see this trend with laptops, phones, cars, etc. But, the reality of the market is, you don’t need the newest of the new, this is just what the large corporations and their advertising teams want you to believe. There are many individuals that have found perfect happiness, and held larger wallets, with used and refurbished products such as furniture, appliances, houses, and cars.


Why can’t this practice be transferred into the business world, especially with your server and hardware needs. Avoid being the individual that has gotten into the habit of throwing away perfectly good commodities for the newer, shinier, and supposedly better product, when there is a tested and trusted source to purchase a refurbished choice. Not only will you help save the planet and work towards a non-disposable society, but you will also save your company a great deal of money.

Speaking of money: budgeting and financial planning is a large part of any business and the IT budget can only grow so much. Here’s the nitty gritty: we are living in a software driven world. Without proper software, hardware would not be able to communicate and the tasks that we need done would not be completed. Software can range from $50,000 to over a million dollars per business depending on the type of software, amount of licenses, and complexity of the goals. On the other hand, hardware is a commodity, you can find it anywhere and buy it at any time assuming there is room in the budget.


Logically speaking, it would make more sense to save money on the hardware than to attempt to shrink down the size of the software allowances. The best way to do this is to buy refurbished servers and hardware parts: hard drives, batteries, raid controllers, etc. Refurbished hardware is a fraction of the cost of new hardware and the differences are minimal.

The fact of the matter is: refurbished servers, for example, are just as reliable as new servers. They run just as well, can be just as fast, and are able to have the same maintenance support as a server that is brand new and has never seen the light of day. Not only are servers less expensive in general, but upgrading hardware is cost effective as well. Imagine being able to cut the cost of a memory upgrade in half. Your finance department will praise you!


But, it is also important to look at the source of the refurbished server and find a trusted company so that you can maximize the benefit of saving money and receiving a reliable product. At Velocity Tech Solutions, our hardware is tested by our in house Dell-certified technicians when it comes into our warehouse and before it gets shipped out to the customer. In addition, we offer a standard one year warranty on all of our products – we trust our technicians and the talent of our team and are ready to stand behind our products 100 percent of the time.  

The next time you are looking to upgrade your hardware, call our trusted solutions specialists at (888) 784-2088 or (651) 633-0095 or visit our website at velocitytechsolutions.com. Let us help you be the hero of your company and get you the reliable parts you need for a fraction of the cost.

Why You Should Use 3rd Party Maintenance For Your IT Assets


The short answer: MONEY.

We all want to look like heroes and save our companies thousands of dollars each year but, more often than not, we become the goat, the butt of all jokes, the one who fell for the scam. You find out that in the long run the service is so bad that you end up spending more money per incident because you got what you paid for. However, most buyers who utilize 3rd party maintenance services save up to 50 percent or more over three years, in most cases. In reality though, it isn’t just about the money you could save, excellent service is also an important trait, 3rd party technicians come just as qualified as OEM technicians. 3rd party maintenance requires careful vetting but in the end, it can be more than worth it.

This is where doing your homework and being educated to make a better choice is critical.

Let’s begin at the moment you decide to buy your nice, shiny, and new equipment from your original equipment manufacturer (OEM). The new server and switch smell is hard to beat. Keep in mind, once you take it out of the box you have already lost a third of your equipment’s value. It’s like taking that first right turn after you’ve picked up your brand-new car, it loses $8,000.00 in value. Though, it sure does smell good.  We understand, with new equipment (or cars), you get that sense of security when something goes wrong and you know your OEM will be there to support you.

Now, fast forward three years: here’s the scenario: your equipment is working fine, you’ve made minimal service calls, and then you get the renewal notice for maintenance on your equipment, you gasp and your eyes grow wide!


The renewal offer is twice as much as it was originally and it now states that your equipment is now at the “end of life” stage. But it works great, now you are confused and dazed.

At this point, the OEM is trying to dictate your business decisions and your budget by scaring the bejeezus out of you and forcing you to believe that you absolutely must find the money to upgrade. This is the part where the OEM’s instill doubt about the equipment that they themselves sold to you. For years the immediate response from most buyers was, “Well, they know best, we should do this or we’ll have problems.” Objectively speaking, this actually means that they have no faith in their equipment after three years.

Truth be told, we are in a software defined world. Software costs, often times, outweigh hardware costs. So, let’s think about the six figures it takes to upgrade your hardware, in addition, for larger companies, it could take an additional seven figures to upgrade your software. Throughout this process there is no doubt that the OEM’s are fat and happy.

But, think about if you were able to extend the life of your hardware without needing to change any software and then spent just a few hundred dollars per year on your support, you would actually get to do the job you were hired to do. 3rd party maintenance services allow you to do just that.

OEM support contractors, often times, are the same folks that the 3rd party maintenance providers use. In a nutshell, this means that you have access to the same talented technicians that the OEM’s use, but at half the cost.


The next time you find that your OEM contract is up, save yourself the worry and call up Velocity Tech Solutions, they offer 3rd party maintenance, and have a chat with them, get some quotes, and match them up against your OEM’s quote. Velocity’s 3rd party maintenance, Velocity Support +,  is a stress saving, hassle free, and budget friendly solution to prolonging the life of your hardware. The next time your hardware is having a problem: call (888) 784-2088 or (651) 633-0095, let Velocity Support + handle the hardware, and leave yourself free to kick your feet up.

What You Can’t Find on Amazon


It is no secret that, in this day and age, online shopping is the first option for many individuals when they are in need of any product at any time. Shopping online can be the quickest and most convenient option when we take into consideration the busy day-to-day lives of consumers across the globe. What is easier than spending a few minutes browsing for the product you need and purchasing it for two-day delivery with the touch of a button?


The first place that many people look to when in need of any product is Amazon.com. Amazon was developed in 1994 by Jeff Bezos and is headquartered in Seattle, Washington. Initially, the company’s niche was as an online bookseller that found success because of it’s extensive online inventory of literature. Over the past three decades it has grown into the largest Internet company in the world in terms of revenue and into the second largest employer in the United States, behind Walmart. Amazon now sells: clothing, electronics, jewelry, hardware, furniture, home essentials, groceries, toys, video games, media, and countless other products.

Sure, it is safe to say that you can get almost anything from Amazon.com, including servers, hard drives, and software. They have a plethora of different products and options readily available for purchase. But, with a company as large as them, there are multiple qualities that you wish they had.

Examples of wishful qualities may include:

  • a guarantee that the product is tested for accuracy and usability and will ensure that your needs are met with the correct product before shipment.
  •  a standard, guaranteed warranty with each and every single product.
  •  long-lasting support and a real relationship with the company for future reference and solutions help.
  • guiding questions that are readily asked or quickly answered.


Fortunately for consumers everywhere, these wishes can be granted. All of these qualities come standard with a purchase from Velocity Tech Solutions.

Velocity Tech Solutions was founded in 2007 out of Minneapolis, MN with a network engineer mindset.  Over the past decade they have propelled forward as a supplier of refurbished and tested Dell servers, Equallogic hard drives, Precision work stations, and Dell parts. The service that Velocity Tech Solutions offers is second to none in terms of their customer care, careful analysis, accurate fixes, and speedy delivery.

We ask relevant questions in order to make sure that the product you are ordering is the correct one for your intended fix. Every single one of our products is tested by Dell Certified Technicians on the way into our warehouse, as well as on the way out when you order for delivery. In addition, every product we sell comes standard with an honorable one year warranty through our company.

However, the most important perk of allowing Velocity Tech Solutions to be there for your server, hardware, and software needs is the genuine care that you receive before, during, and after your purchase. Our solutions specialists and technicians are available to assist you in any step of the process whenever called upon, in every hour of the day. Our passion is to be your one stop shop in terms of being a solutions resource.

Now, don’t get us wrong, we love Amazon just as much as the next person when it comes to getting what we know we need quickly and efficiently. But, we also understand that some purchases take time, thought, and the need for a solutions specialist to be there for you every part of the way. Confidently receiving the correct product and the warranty are just a bonus.

Benefits of Velocity Tech Solutions

After 11 years in business we want to reintroduce ourselves.

We were founded by a Network Engineer that understands the importance of your time, the quality of the product, and the accuracy of your order.

Anyone can send you a widget! The benefit of using Velocity Tech Solutions as a resource is that we are committed to developing a long-term relationship with you and gaining your trust. Our passion is to be creative in helping you resolve the issue/project at hand.

Our principles soon became our core values:

  • We give the “WOW EXPERIENCE” (not just a sale, an “EXPERIENCE”)
  • We do the “RIGHT THING” for you
  • We are Diverse
  • We are Passionate & Tenacious

We invite you to experience our extraordinary service .
Now that you’ve learned a little about us we want to learn more about you!
Please visit us at our website or lease contact one of our highly skilled
Solutions Consultants

888-784-2088 Toll-Free
651-633-0095 Main

Servers starting at $199

20,000 square feet of climate controlled Dell Servers and Parts

We are a Traction® Company

 Velocity Tech Solutions

How Velocity Tech Solutions Saved Spring Break

Spring Break is upon us. Each year around this time, I think about one of my favorite Velocity Tech Solutions “saving asses among the masses” stories.

This is Minnesota and spring break can feel more like winter solstice, so when families can actually get a room at the Water Park of America they feel like a Florida vacation without being in Florida. That is a BIG Deal!


I was the lucky one to carry the emergency phone that night. I happened to be at a social event with our President, Kay Winchell, which was a bonus for the customer since she is a network engineer in disguise.

I answered the phone at 10pm and I heard panic. A server was down and so was the Water Park of America! Kids were crying, parents were screaming, parents were weeping. It was pandemonium! The tech from Water Park of America was beside himself. He had spent the entire day dealing with another vendor and paid for parts to be couriered across the Twin Cities multiple times and the server was still not repaired. That vendor had not asked questions and just kept throwing parts at him without helping troubleshoot the issue.


We met him at the office and he was so exhausted he couldn’t remember the model of the server . We walked around our warehouse for an hour (It’s a big warehouse!) and he finally saw the server that was the same model.

Kay grabbed the server, I grabbed the parts and we went through creating his error. Within minutes we discovered the issue.

The tech rushed back with the cache module that was needed and within an hour the Water Park of America  was up and running and our customer was ecstatic! (And so were the parents that promised the kids the water slide that was as dry as a bone all day long!) We helped the tech become the Hero instead of the Villain. The only thing that could have gone better was if he had found us much earlier!

That night, it was decided, we don’t just sell servers, we provide the “WOW” experience and it became our #1 core value.






Cyber Security- The Ostrich Approach is hurting the world


Image result for ostrich with head in sand



How important is cyber security to you?  You folks in education, and healthcare how about you? IT professionals, I know you have your pretty little firewalls, but seriously does your software update every minute so it catches every threat out there? Perhaps its “good enough”  It’s 2018, in case anyone hasn’t noticed and Cyber Security continues to be a huge issue for every business that has a network. That means EVERY business out there is subject to these threats.

In 2017, hackers stole $172 BILLION dollars from people all over the world according to an article from MIT Technology Review. $19.4 Billion happened in the United States. I am willing to bet that in each of these threats, those pretty little firewalls were up and running and all the lights were flashing that all was good in the world.
The forecast for 2018 isn’t any better. According to Forbes, education and healthcare are going to be big targets this year. Educational institutions lack resources to defend their endpoints. school systems are a lightly secure network of endpoints that contain personally identifiable information on students, parents and staff.
The increased use of IoT in the healthcare industry will also create data security concerns in 2018. In the era of connected devices, the healthcare industry needs to make patient security a top priority by increasing security protocols. To combat this, businesses should look to third-party security providers to encrypt these devices and monitor with live ethical hackers that can actually see an intrusion and catch it BEFORE it infects  your network or brings it down.
So stopping it BEFORE devistation?? What a novel idea.
So why are we taking the Ostrich approach again? The pretty little firewalls we have so much faith in are obviously not getting the job done. Oh, oh wait it’s too expensive, right? Once a school is hacked and the child’s data is in the wrong hands, have you figure out what that childs value is? How much money does it cost you to be down?
Sometimes its expensive to be cheap.  For a few hundred, maybe a few thousand dollars,  you can stop adding to the billions lost. Get a pen test  or have your network monitored.
Anne Tarantino