I AM not an accountant or an economist but as I sit here at my breakfast bar on this gloomy, drizzly August day, dreaming of being in the Caribbean, Maldives or Mauritius, the price of technology products increasing comes to mind.
It seems to me that the way businesses pay for and consume tech hardware needs to change. One of the issues driving this needed change is the exponential advancement of technology itself. Last year’s model of computing equipment, whether it be mobile or desktop, may no longer be as up to date as a business of today requires. This acceleration of the advancement of our everyday tools is not going to slow down. It will continue to accelerate far into the future. Let’s face it Artificial Intelligence can’t be that far away?
Today’s workforce needs to be flexible. Able to change to new methods with new applications fast. That demands the latest technology hardware to enable productive working both in and away from the office. Business leaders want to attract and retain the best talent and to do that they invariably need to have the best and latest tech.
But that change comes with significant cost. Look at the evolution of mobile phones for example. Just five years ago the average price for a good business smartphone would have been around £200. Fast forward to 2018 and the Samsung S9 or iPhoneX start at £750 per device. The tablet/laptop I am now using (since the IT boys in the office gave me lessons) to write this article, was in excess of £1,000!
But many still compromise quality with a cheaper alternative to reduce the capital expenditure that’s left to depreciate on the balance sheet for years. Once a hardware warranty has lapsed, then come the issues, both technically and with staff discontent.
The change is simple, don’t compromise. You typically lease vehicles and photocopiers so why not lease your technology? Not all are aware of this highly effective method to procure your latest chosen equipment with a guaranteed residual value plus the benefit of 100 per cent tax relief thus reducing overall costs. Your hardware can be tracked and warranty looked after via asset management software.
Purchasing the latest tech may be a luxury but with leasing it doesn’t have to be!
Maybe I’m in the wrong profession after all! For more information contact the writer.