Businesses need to switch on to technology leasing
It is often said that the one constant is change. In the case of the flow of technology, this could not be clearer.
Technology is always evolving. Moore’s Law, named for Intel co-founder Gordon Moore in 1965, posits that every three years, the technical capabilities of a technology asset will double in complexity.
Clearly then, for a business, keeping up with this pace of change can be a challenge. But as businesses grow and develop their requirements for technology also shift. In the face of rapidly encroaching obsolescence, and in order to expand business functions, the technology assets of a business must be upgraded or replaced.
Naturally, a company’s finances can only stretch so far. So what then? How can a business remain flexible, but not overstretch its finances in a mad dash to stay technologically up to date? Perhaps the answer can be found in leasing.
Asset finance has risen in the technology space to help firms level up without pulling the plug on their finances. As the leasing offering for technology has continued to develop and be offered more widely, both the type of assets and type of businesses seeking them has changed.
In just the past few years, there had been a shift from traditional office-based companies to some sectors that may seem not immediately obvious candidates. Gone are the days when the odd, forward-thinking office would lease a few work laptops. Now micro-manufacturers lease 3D printers, and media companies lease licenses to use content management systems.
Software as a service, or SaaS, is a fast-growing market, which asset finance has effectively latched onto. Though software is unusable without the underpinning hardware, software updates may be more frequently required than hardware, potentially at high cost. Take the iPhone for example. How many mini-updates come out each year? This is just one example.
One major upcoming shift, and one that has already begun to get underway, is the Internet of Things (IoT). It has been a buzzword for many years in the technology community. Simply put, the IoT refers to physical objects communicating with each other using internet infrastructure. This can range from a fridge noticing there is no milk and ordering some, to a person telling your connected speaker to turn off the lights.
IoT may have a recreational flavour in its early stages, but this is set to change. One area where businesses may seek to lease IoT connected devices is manufacturing. More generally, as businesses increase internal collaboration, processes will need to go along with this, and the IoT can drive this forward.
As the pace of technology marches ever forward, businesses need to look at leasing to update their kit and processes, and avoid becoming obsolete.