The merits of leasing communication technology

We’d like to refer our readers to a worthwhile resource that Gary Audin, our longtime colleague at Delphi, recently published discussing the merits of leasing (vs. buying) communications technology. In his analysis, Audin reviews benefits from both the CFO and the CIO perspectives. Much of the leasing advantage stems from the fact that communications technology is following the path of IT. In one factor, he points out that “call servers/managers, phone and trunk gateways, and IP phones are not expected to remain in use much beyond five years . . . so the communications technology [life span] has been shortened considerably.”

Audin, taking the side of the CFO when considering the merits of a lease, points out that “the CFO has to ensure that there is cash when needed and is not tied up in a technology purchase that cannot be changed.” Meanwhile the CIO needs to maintain the flexibility to react to changes in technology and the demands of his or her user group. Additionally, the CIO “may be able to acquire more unified communications technology if the first year budget is not too great.” Audin concludes. “Leasing can reduce the first year cost thereby increasing the UC functions implemented at an earlier date.”

Another benefit to consider in favor of leasing: the green effect. “Owning older equipment that consumes more electrical power will result in higher operating costs than the new, more energy-efficient products,” Audin writes. Leasing allows the technologist to replace the power-hungry equipment with less costly-to-power systems. Replacing the equipment can reduce the power consumption by as much as 25%, according to the “EPA Report to Congress on Server and Data Center Energy Efficiency”, released in August 2007. 

Finally, Audin highlights considerations for distinct VoIP and UC infrastructure elements and reviews different lease options along with different lease terms and conditions. For readers who would like to view the full report, it available for free to  registered Webtorials users here.