Computer network leasing - why, when and how

Why lease rather than buy?

With computer hardware and software costing less than ever before many people now find it affordable to buy outright. In addition, the latest Network Operating System software (Microsoft Windows 2003 or Microsoft Windows Small Business Server 2003) costs less in real terms than a few years ago. This makes it possible for even the smallest business to take advantage of Networking computers and resources together, which until recently had been the domain of larger companies only. However, although the costs of buying outright are low, the story doesn’t end here.

Even with computers and software being relatively cheap to buy, there is still the risk that a new version of application software will be released just after you have bought. It is also true that application software, which is often updated by the software manufacturer every two years or so, can make hardware obsolete in some cases.

While computer manufacturers imply that their machines can be upgraded cost-effectively, the reality is sometimes rather different.

Taking into account the cost of upgrading hardware and software, leasing becomes a sensible option for many firms. This is what some customers said before they switched to ATW for computer supply and support:

"We bought a RAID server from one the market leaders in late 1999 running Microsoft Windows NT Server. It probably was not the best advice at the time, we know now that we would have been better off with Microsoft Windows Small Business Server 4.5 but our previous supplier did not take much time to advise us that carefully. Anyway, about 18 months later we needed to upgrade the Network Operating System and we found out that the machine that we had paid over £11,000 for would not support the latest generation of network operating systems. Thankfully we have not had these problems since we turned to ATW for help……."

"The Computer supplier we initially used said that the machine was 'operating system specific' whatever that means! In the end they told us that the best thing would be to throw it away and that fortunately a replacement machine of a similar calibre would be a lot cheaper now, only £7,000! The advice given by ATW has since been invaluable……”

"The machines themselves seemed to be very inexpensive and the Company we were using at that time offered us quite a good leasing deal. Fortunately I had the sense to check on the costs of software and, more importantly, installation. It turned out that these costs were actually greater than all of the equipment put together and that they were "sorry but installation costs could not be included in the leasing agreement….."

"My supplier told me that I was completely covered but when we really did need help I was told that it was the operating system software that was at fault and that I would need to find an expert to help us ....."

At ATW we believe these folk were treated unfairly and it really got us thinking about how we could devise a leasing package that was flexible to adapt to changing business needs.

What are the advantages of leasing?

Some of the advantages of leasing are that:

• costs are certain and known in advance
• there is no need to tie up capital in fixed assets
• leasing is inflation proof as the use of the asset is obtained immediately and payments are made in fixed instalments.
• you never need to have out of date computer equipment or software again
• you can change and upgrade equipment cost-effectively
• you gain from inclusive IT support
• capital can be released for other purposes and improve cash flow
• it is tax efficient. Leasing is the only way of acquiring computer equipment which is fully deductible.

With 90% of Chartered Accountants and, 95% of the Times Top 100 Companies taking advantage of leasing and the budget for 2004 reducing capital allowances on outright purchase of IT equipment by 50% the advantages of leasing are clear.

ATW set about putting together a really competitive leasing package targeted on relatively small businesses. This offers a comprehensive installation and ongoing support service in a single, low cost leasing deal and also includes a pledge at the same time. Here it is:

“ATW Information Technology Systems plc, makes you a promise of a Total Computer Support Service within a single monthly payment. Further, we promise that your system will, at your option, be upgraded every three years and your monthly payments will either remain the same or be reduced."

ATW was formed way back in 1974 and has been a market leader in IT since 1982. Client demand for leasing has meant that we have dealt with all the main leasing companies and can, therefore, offer a competitive deal to our customers.

Call now on 01243 839160 to find out how much it would cost you to take advantage of this all in one network support service.