Introduction to IT Leasing from DCR
DCR offers a wide range of creative lease financing options that integrate disciplined technology refreshes and high residual values. Our leasing solutions minimize the financial and technological risks that would accompany a straight purchase. Industry analysts estimate that purchased equipment has an asset life cycle of 48-to-60 months in the field — or sometimes even much longer. So purchased equipment typically carries higher maintenance and IT support costs than current technology. In contrast, an IT lease of 24-to-36 months, or at least two-to-three years shorter than purchased equipment, carries lower maintenance and IT support costs, thereby lowering total cost of ownership (TCO). By refreshing technology more frequently, performance and energy efficiency are also improved dramatically. In addition, the tech refresh may result in a cash rebate from the utility company.
Even when a purchase might appear to be the right decision, purchased assets can have a negative impact on a company’s ability to adopt new technology later. A November 2007 IDC report, “IT Capital Investments: Evaluating Technology Life Cycle Management and Lease Versus Own Options,” supports this hypothesis. It concluded that organizations can save at least 20.5% by shortening equipment life cycles from 48-to-60 months to 24-to-36 months, and by developing a continuous scheduled flow of technology refreshes. Another study by the Robert Frances Group concluded that TCO savings can be as high as 40% over the IT life cycle when a best practice approach toward technology refreshes is taken. Since DCR leasing integrates structured technology refreshes, it is an essential vehicle to facilitate this process.
DCR leases can include hardware, software and professional services, as well as other kinds of property or equipment, such as containers, buildings, and HVACs. By providing low interest, “pay-as-you-grow” leasing solutions that match lease payments with expected project returns, leasing makes it easier for customers to evaluate, approve, and begin IT projects. DCR asset recovery services include the industry’s highest trade-in credits for old or obsolete equipment, which infuses cash on customers’ balance sheets immediately. Finally, DCR ensures eco-responsible equipment removal and disposition and compliant data destruction as required.
Highlights of DCR’s Flexible Financing Program
Trade-in credits for older, less efficient equipment
- Eases migration
- Immediate cash infusion to your balance sheet
- Eco-responsible disposition of old equipment
- Helps to justify new IT projects
- Establish baseline for energy utilization
- Increase energy efficiency with newer equipment
- Lower your energy bills
- Qualify for a cash rebate from your utility company
- Increase performance
- Increase energy efficiency
- Lower your energy bills
- Lower maintenance costs
- Minimize IT obsolescence risks
- Increase industry competitiveness
- Install current technology with less business disruption
- Conserves cash – helps to jumpstart large IT projects
- Flexible terms – 24-month or 48-month leases
- Smooth, predictable OpEx – technology refreshes included
- Highest residual values in the industry – lowers monthly lease payments
- Obviates the lengthier capital budgeting process – faster project approvals
- Improves credit worthiness – leasing is an operating expense, never showing up as debt on the balance sheet (“off-balance sheet”)
- Promotes sounder asset life cycle management practices
- Minimizes disposition risk by ensuring compliant, eco-responsible asset removal
- Finances multiple asset classes – IT equipment, containers, etc
- Short-term, month-to-month solutions to meet peak computing needs
- Minimizes stranded assets
Energy rebate potential
Technology refresh services are integrated with the lease
Pure leasing advantages
DCR offers creative leasing solutions customized for each customer’s IT project and business needs. DCR structures the most competitive leases in the industry to support, finance, and manage your IT infrastructure throughout its entire life cycle, including attractive trade-in credits for older, less efficient equipment that infuse cash on your balance sheet and smart technology refreshes to lower your TCO. DCR can negotiate with utility companies to maximize cash rebates and to infuse additional cash on your balance sheet.
DCR is experienced in developing financial alternatives for a wide range of IT transformation projects, including data center consolidation, containerization, virtualization, and energy efficiency best practices. In short, our team of financial and IT professionals develop long-term partnerships with customers to solve their unique business problems by balancing changes in technology with sound financial management.