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Affordable IT: Leasing IT Equipment

It's hard to imagine running a business without some sort of technology infrastructure, but the capital expenses can be prohibitive for small and midsize companies. Consider leasing new equipment.



Budget-conscious IT managers can conserve capital and simplify bookkeeping by making set payments over time rather than in one lump sum. They also can upgrade equipment at regular intervals without breaking the bank and shift the burden of proper environmental disposal to the lessor. Depending on the contract, the lessor also may assume liability for sensitive data that might inadvertently remain on hard drives.

Today's IT customer expects a high degree of technological sophistication, driving increased IT spending that's disproportionate in small businesses compared with that of the bigger fish. "Ten years ago, a PC and an AOL account was sufficient for small businesses," says Joseph Pucciarelli, research director, Technology Financing Strategies, at IDC. "Now there's an expectation to have a Web site and be able to buy a product online." That requires a more robust computing infrastructure.

About 40 percent of small and midsize businesses take advantage of financing options (including leasing, bank loans and credit cards) to acquire computing infrastructure compared with about 20 percent of the enterprise segment, according to Pucciarelli.

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