Many organizations find that they need to update their existing communications systems, but lack the Capital budget to do so, or they’re simply apprehensive to make an investment in technology which seems to be ever-changing.  However, in our current business climate, the status quo when it comes to technology upgrades quickly leads to reduced productivity, poor customer service and increased cost. For this reason, many leading organizations have moved their technology upgrades from their Capital budget to their Operating budget by leveraging financing.

To replace or not to replace?

Let’s face it, advances in technology are designed to make us more productive and give us the ability to perform more efficiently while enhancing responses to our customer’s needs. That being said, if you’re not leveraging technology to provide better service, you may be at a disadvantage when compared to your competitors.

Technology is changing so rapidly that whatever you acquire today may be obsolete within five years. If you’re wrestling with the dilemma of whether or not upgrading seems worth it, you’re not alone. More and more businesses are reaping all the benefits of new technology while simultaneously hedging against technology obsolescence through a Fair Market Value lease. A Fair Market Value lease option allows your organization to obtain all of the productivity benefits and enhanced customer service capability delivered by today’s Unified Communications, Mobility & Collaboration tools while giving you the ability to retain your hard-earned cash and providing you with the least-cost option to deliver a solid ROI.

A good example of this is NEC Financial Services’ current offering of Fair Market Value leases with rates at or even below zero percent. For many organizations, these rates produce a monthly cost figure on a new solution which often falls well below what the organization is currently spending for maintenance alone. With these figures, finding the elusive ROI becomes easily achievable. Additionally, this financing structure provides all the benefits derived from the use of the new technology without having to worry about ownership and the risks associated with long-term investment in ever-changing technology.

You don’t have to spend money to make money!

If you think you have to expend large amounts of capital just to grow your business, think again. Financing opportunities like the one mentioned above lends other options. Are you wondering how this is possible? Take a look at the following example: 

ABC Company has identified that upgrading their outdated PBX provides an opportunity for significant cost savings. But there’s a problem. With no funds left in this year’s Capital budget, their IT Department will pay more for their existing, inefficient infrastructure until funds are available. Not to mention the risks associated with operating an outdated system that exposes the business to equipment failure.

What now?

With the help of NEC Corporation of America, ABC Company performs a cost analysis and determines that by leveraging NEC Financial Services’ 0% Fair Market Value promotional lease, they’re able to obtain the technology they need now at a rate that falls below what they’re currently spending for maintenance alone! Moreover, the improved productivity and enhanced customer service experience they’re able to produce by implementing Unified Communications and Collaboration is helping them to retain and acquire more customers. This makes the new solution a revenue producer rather than a cost burden.

Don’t get stuck in a rut like ABC Company - leverage a technology financing partner who offers the most accommodating (and cost reducing) structure for you. With NEC Financial Services, it’s a win-win with 0% FMV offered for 48 or 60 months on select communications systems. You’ll want to take advantage of this offer quickly. The savings are great but they won’t last. The offer ends August 30, 2013. For additional details, click here.

For more information and to learn how you can take advantage of a 0% Fair Market Value Lease, ask your authorized NEC Associate, or click below. If you don’t have an Associate, you can find one here.
 

The internal debate on hosted versus on-premises might continue, which means, you’re still faced with the challenge of how you will acquire a unified communications solution without breaking your budget. In our last post we introduced financing, now let’s take a deeper look at your options and the best ways to apply them.

Leverage your financing options

OpEx financing models allow many organizations to leverage all the benefits of predictable monthly payments traditionally found in hosted solutions in an on-premises solution. For many, this can be the best of both worlds: a service-oriented model found with a hosted solution with none of the concerns some organizations may have with security and availability of a hosted service. What’s more, a $25,000 on-premises collaboration and audio conferencing solution may be a difficult solution to get approved, however, an on-premises solution with all of the capabilities of hosted for less than $400.00 per month can be a powerful internal conversation. Are you more comfortable paying out a lump sum or breaking payments down into a monthly scale? Regardless of where your preference lies, there is a financing option for you.

You don’t always have to spend money to make money. Sound too good to be true? Take a look at the following example:
ABC Company has identified that upgrading their current infrastructure provides an opportunity for significant cost savings. But there’s one problem: with no funds left in this year’s budget, their IT Department will pay more for their existing inefficient infrastructure until funds are available; not to mention the risks associated with operating an outdated system.

With financing, there’s another way.

Financing companies in the technology industry work to solve this common customer problem by offering plans that reduce up-front acquisition costs. The plans and programs come in the form of OpEx or CapEx with deferred payments (90-120 days is typical although longer deferments are available), step payments (increase or decrease over time) or seasonal payments (payments due during times of increased revenue for the customer). Bottom line, leverage a technology financing partner who offers the most accommodating (and cost reducing) structure for you.

 
So wherever you are in the process, you have options in choosing a solution that can be tailored to your specific needs without waiting until the approved budget kicks in. If you leverage the tools available to improve the communications services you deliver, you’ll reduce the risks associated with continuing to operate an outdated system. Just remember that with financing, you have options – the key in obtaining maximum value from these options is in how you leverage them.

When it comes to system upgrades, several IT funding initiatives are shifting their focus to cloud technology; what will you do when you need to upgrade your existing system, but don’t have the funds available in this year’s (or even next year’s) budget?  This is an opportune moment to examine your organization’s budget in regard to capital expenses (CapEx) versus operational expenses (OpEx), as implementing new technology will likely require you to switch a majority of your spending from CapEx to OpEx. Where does your primary focus lie? Respondents to an InformationWeek Analytics IT Budget Survey report that they are increasingly focused on calculating per-transaction service costs and implementing charge backs.

What you have vs. what you need
 
Are you paying monthly audio/web conferencing costs plus licensing fees for each user on your staff? If you answered yes, and that works best for your existing budget, then you might favor a hosted system versus a premises-based solution. A Frost & Sullivan report via TMCnews, notes that budget pressure and increased adoption of unified communications are driving demand for integrated web conferencing. While some look to hosted providers, the report also noted that as functional needs grow, organizations are expected to move to on-premises deployments. So who is best suited for a hosted system? If your organization can gain from the following benefits, then a hosted system may be right for you:

• low up-front costs (made possible through monthly billing) 
• standard software on a per-seat basis
• greater ability to free up internal support staff

Additionally, the move from CapEx- to OpEx budget focus has driven cloud-based UC offerings and workplace virtualization. We have evolved to replacing stationary desk phones with virtual, mobile alternatives such as soft phones, instant messaging (IM) and video features. Still in all, this move isn’t feasible for everyone. Economic downturn has forced organizations to reduce overhead, thereby increasing mobile working and the need for consistently evolving UC solutions.
 
What are your options?

There are pros and cons for both hosted/cloud based approaches as well as on-premises solutions. The shift from CapEx to OpEx funding is driving demand for hosted solutions, but IT departments accustomed to on-premises technology sometimes point to security and availability concerns as part of their reluctance to transition completely to a cloud alternative.

We’ve touched on the pros and cons, and for some, the consistent service delivery, on-demand scalability, and standard suite of UC options available with a hosted solution is most beneficial, while others will look to hybrid models as a compromise.

The good news is there’s still another way to get all the benefits of an OpEx acquisition and an on-premises solution without breaking your budget. We’ve got one word for you: financing. In the next post we’ll look at the different options that are available.  To learn more about your options, check out the video below.