IT leasing: an asset in the face of programmed obsolescence?
Programmed obsolescence is more topical than ever in a society where the use of IT equipment is central to all sectors of activity. From a simple desktop computer for administrative tasks, to an entire information system that simplifies access to information, automates processes, stores and backs up company data and, more generally, is the key to the company’s success. improve productivity. But what happens when computers or software stop working after only a few years of use? In the best of cases, the company can carry out repairs or updates, but in others, programmed obsolescence renders the hardware inoperable. For this reason, companies need to integrate the risks of obsolescence into their strategy, because if poorly anticipated, obsolescence of IT equipment can have a negative impact on the smooth running of the business.
What is programmed obsolescence?
Programmed obsolescence is the process of reducing the lifetime and useful life of a good. It can be defined as “a stratagem by which an asset’s normative lifespan is deliberately reduced at the design stage, thus limiting its duration of use in order to increase its replacement rate”. The depreciation of an asset may also be due not to material wear and tear, but to technological progress, the appearance of a competing innovation on the market, a change in regulations, the unavailability of the product or the cessation of production. It therefore affects a tool that continues to perform its function and is not yet totally unusable.
Obsolescence is part of today’s business model. After market introduction, growth and maturation comes decline, obsolescence and exit. However, today’s product life cycles are increasingly short. Indeed, to show that they are innovating and to maintain a competitive edge, manufacturers are launching new ranges earlier and earlier, ceasing support for older models. So, rather than repairing or reconditioning their equipment, consumers are driven to replace it with the new generation, ever more powerful, stylish and functional. What’s more, programmed obsolescence and the accelerated ageing of computer hardware are contributing to the scarcity of the raw materials needed to manufacture this equipment. This also poses the problem of increasing waste, which cannot easily be recycled.
The risks of IT obsolescence
In the IT sector, obsolescence refers to hardware, software or operating systems that are no longer manufactured, can no longer be repaired, or for which support or updates are not guaranteed. Obsolete software or hardware represents a number of risks for companies, particularly in terms of IT performance and security.
The obsolescence of IT equipment can lead to unavailability of services, breakdowns and problems complying with regulations. It wastes resources (time, money, human resources) to repair failures. Gradually, security flaws, inherent in unperformed updates, appear, and compatibility with other software or equipment is no longer guaranteed. From If the software or equipment becomes inoperative, it can no longer ensure the confidentiality of company data as effectively. In the long term, tool obsolescence can lead to stagnation in productivity and competitiveness in the face of companies using the latest innovations.
To avoid these various risks, companies need to anticipate the risks of obsolescence of their IT assets to prevent any negative impact on the smooth running of the business. Moreover, at a time when use is dominating over ownership, major purchases and investments are becoming less and less relevant for companies. That’s why leasing IT equipment has become an ideal solution to help them establish a lasting foothold in the digital world.
How can IT leasing help combat programmed obsolescence?
IT is a constantly evolving field, making hardware rapidly obsolete. The loss of v ith technological advances and evolving needs, the value of new technologies is considerable. Companies therefore need maximum flexibility to avoid being locked into irrelevant choices. The great flexibility offered by it leasing is particularly well suited to equipment such as IT equipment, which is subject to constant change and rapid obsolescence.
IT leasing is the long-term rental of IT equipment. The lessee has access to the equipment for one or more years, in return for a fixed monthly rental fee specified in the contract. At the end of the contract, the lessee can return the equipment, or take out a new contract depending on the company’s needs. This financing solution offers a number of advantages to businesses.
Significant financial gains
Modern, reliable hardware is a considerable advantage for any company. However, the cost of acquiring and maintaining IT equipment is often very high. IT leasing ensures that your company’s investment capacity is not undermined, by avoiding the need to invest in technological assets whose value rapidly declines. In fact, the more frequently IT equipment has to be replaced, the more attractive leasing becomes financially. If you need to replace a workstation after just two years, for example, it’s cheaper to lease it and then lease another, rather than buying two new products in a short space of time.
On a monthly basis, costs are naturally integrated into the current budget, so cash flow is preserved and the company’s funds remain available for its core business activities, with no unpleasant surprises linked to obsolescence.
State-of-the-art equipment
In a society where the acquisition and renewal of new technologies represent a major asset for companies, remaining the owner of highly obsolescent equipment does not represent added value. Thanks to this financing technique, companies can constantly adapt to technological developments, while externalizing the risks of obsolescence. As a result, companies can renew their IT assets on a regular basis, ensuring that they have the latest generation of equipment, and can look forward to business growth with confidence.
IT leasing is also an excellent way of adapting to real business needs. If, during the agreed period, the company experiences a peak or a downturn in productivity, it is possible to expand or reduce the size of its IT fleet. As leasing contracts are open-ended, they allow you to replace your hardware as and when you need it, or as and when it becomes obsolete.
Homogeneity of computer equipment
Opting for leasing also means ensuring a homogeneous IT estate. This is an advantage to bear in mind, as a heterogeneous IT estate, whether hardware or software, leads to greater management complexity, communication problems and, indirectly, poor user practices. What’s more, obsolete IT infrastructures can pose a host of problems. Indeed, devices that no longer function properly can jeopardize the security of the company’s IT assets. For example, unperformed updates can considerably slow down business activity.
All of these situations complicate the digitalization of companies, and end up weighing on their profitability. By offering a uniform, regularly updated fleet, long-term IT equipment leasing eliminates these internal incidents, which ultimately prove costly for company finances. Access to equipment running new software or with improved performance is a real time and efficiency saver.
Expertise and outsourcing of fleet management
Leasing gives you access to the expertise of specialized professionals. Depending on your needs and expectations, IT leasing professionals will be able to advise you on the equipment and technologies best suited to your business.
Renting your IT equipment also allows you to outsource the management of your IT equipment, which requires time and technical skills. An external service provider manages the maintenance of your computer equipment. An expert in his field, he will be able to provide you with the technical support you need. This enables you to focus your IT resources on more productive and profitable activities.
By facilitating the outsourcing of IT management, leasing also makes it possible to sustainably control the total cost of ownership of IT assets, and reduce the hidden costs associated with a company’s aging technological assets.
Outsourcing these operational aspects also meets an environmental demand for end-of-life equipment management, with contracts that can be adapted to suit the company’s needs. By responding to a demand for flexibility, and with a made-to-measure aspect, leasing is becoming an indispensable tool for companies.
Computer hardware, software, infrastructure… no sector is immune to the risk of obsolescence! By choosing hardware leasing rather than purchase, the flexibility of leasing protects you against the risks of long-term obsolescence, and guarantees you a high-performance, modern IT infrastructure without impacting your cash flow.
At Fingo Solutions, we support you in the fight against programmed obsolescence. By creating, shaping and sustainably shaping your own financing solution for your technological assets.