Effective IT Asset Management In The Total Lifecycle Cost Analysis

By Michael Vosnos, ARCOA – Businesses today face numerous options and decisions in the acquisition phase of their IT assets’ lifecycle. Myriad factors such as business requirements, the decision to lease or buy, support costs and budgetary constraints all impact a business’ decision whether to extend or shrink their overall IT refresh cycle. Effective IT asset management is often an afterthought. However, having a firm grasp on the real total cost of ownership over the life IT assets can yield significant cost savings and increased operational efficiency.

One of the first questions decision makers need to ask themselves is, does it make more sense to lease or buy? Leasing is attractive to many as it offers the advantage of lower initial capital output, and often maintenance support can be included in the lease agreement. However, the longer the lease term, the more a business will typically spend versus purchasing the equipment outright.