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The Advantages of Leasing Equipment for Your Business

One of the key decisions you have to make when running a business is whether you should buy or lease your IT equipment. With technology being a fast evolving industry – risking IT equipment obsolescence – leasing your IT equipment can be a better option compared to purchasing. Leasing provides a level of automation, flexibility and simplicity coupled with a strong IT asset management plan for customers that reduces total cost of ownership.

One of the first questions you should ask whenever you are considering to invest in an asset for your business is: “Do I really need to buy this?”

What is IT Equipment Leasing?

Each business is unique, and the decision to buy or lease business equipment must be made on a case-by-case basis. Even if a business has a healthy cash-flow, leasing can still be a better choice. Here are a number of benefits of leasing IT equipment which makes it a great option for many businesses.

IT equipment leasing allows business owners to rent IT equipment from a third-party leasing company for a specific period of time. The company would then have to make monthly payments for a predetermined number of months according to the agreed lease. At the end of the lease, the company must return the IT equipment, renew the lease, or purchase the equipment.

Leasing enables you to do more with less. Leasing stretches your available budget dollars so you can acquire more equipment and the latest technology on the market. Optimising your investment dollars this way enables you to lower your organisation’s overall cost of ownership while providing your employees with the tools they need to be efficient.

Leasing allows businesses to make regular monthly payments to use the IT equipment for a fixed term rather than paying a high upfront cost. This releases more money for the business to invest in other revenue generating initiatives. The assumption is that the company is expected to generate cash flows with this investment, hence increasing the present value of money.

The implementation of MFRS16 allows a lessee to claim tax deductions based on lease rental expenses. Where the lessee is deemed to have purchased the IT equipment, the lessee is eligible to claim interest expense as a deduction and capital allowances on the principal portion of the assets.

Leasing provides 100% financing on the equipment hardware and software you need. Service contracts, training, freight and installation charges are incorporated into the lease structure, reducing initial cash outlay.

When you lease a computer, you receive technical and maintenance support. Business owners who rely heavily on their computers may not have the time or the skills to troubleshoot if something goes wrong. If a computer is in need of service, the lessor covers the costs. This also makes it easier and cheaper to upgrade technology as leasing takes the maintenance responsibility off your hands.

When you lease a computer, you get the most up-to-date technology. The advantage to having updated equipment is that it often works faster and smarter. New hardware and software means your business avoid dealing with outdated technology which puts you at risk of malware and other online threats.

Cost is a major factor in sourcing assets and often businesses feel that they only have two options: either spend a fortune to buy it or go without it.

Want To Know More About Leasing?

Being sure about the decisions you’re making for your business can be tricky. You would want to be convinced you have considered all the angles and know the details of each option. When selecting a lessor, vet all aspects of the agreement including up-front negotiations, delivery, and installation; midterm support for upgrades; and end-of-lease return and disposal policies. Rentwise is a reliable and experienced lessor and data disposal specialist that provides a range of services and expertise to help ensure you get the absolute best out of your lease agreements. Our mixed approach of right-fit technology and effectively priced solutions will allow you to enjoy the best cost-effective services. Talk to us now and we’ll be happy to answer any of your questions.

Mounting Challenge – The Throw Culture

E-waste is a popular and informal label for electronic products nearing the end of their “useful life.” Such electronic products include computers, televisions, VCRs, stereos, copiers, and fax machines. What is perhaps not top-of-mind as an alternative to simply discarding them is reusing, refurbishing and recycling them. Awareness that e-waste contains substances that pose significant environmental and health risks has widen – especially if inadequately treated or improperly disposed. What is under emphasised is the fact that e-waste results in unnecessary loss of scarce and valuable natural materials such as gold, platinum, and cobalt. This exerts further pressure on availability of limited natural resources. Latest estimates from The Global E-waste Monitor 2017 show that the world now discards approximately 50 million tonnes of e-waste per year.

Latest estimates from The Global E-waste Monitor 2017 show that the world now discards approximately 50 million tonnes of e-waste per year but only 20 per cent is recycled while the remainder is often incinerated or dumped in landfills.

According to the regional e-waste monitor, 2012 witnessed an estimated 56.56 million tonnes of Electrical and Electronic Equipment (“EEE”) introduced to the global market. Asia is both the world’s largest manufacturer of and market for EEE, consuming 26.69 million tonnes of what was put on the global market, or about half the global amount. In 2014, Asia generated 16 million tonnes of e-waste, which equals 3.7 kg per inhabitant compared to 15.6 kg per inhabitant in Europe. As Asian countries rapidly industrialise and their citizens enjoy higher income and living standards, the consumption and disposal of EEE is anticipated to increase.

PROJECTION OF E-WASTE IN MALAYSIA FOR THE YEAR 2010 TO 2020

Rising to the Challenge – Rentwise’s Double Prong Strategy

Malaysia is currently generating an estimated 280 kilotonnes of e-waste per year according to The Global E-Waste Statistics Partnership. In order to reduce the impact of e-waste in Malaysia, the government wants to make it mandatory for consumers to send certain unwanted electrical and electronic items to places licensed to handle e-waste. The proposed change in the law aims to lessen harm to the environment and public health when such waste is not disposed of properly.

Rentwise’s 2-prong e-waste solution to the country emphasizes on (i) making IT lifecycles more sustainable and (ii) ensuring companies meet strict environmental standards. The latter focuses on proper handling of end-of-life products. This brings with it not only an environmental benefit, but also protects the public’s health, from emission of hazardous substances from careless e-waste disposal.

Rentwise’s approach of remanufacturing and repurposing ICT equipment, notably personal computers (“PCs”), has positively impacted the environmental and society at large.

Rentwise strives to transform what’s seen as an e-waste into a resource benefiting organisations, communities and the environment. With more than 18 years of experience as the leading Green IT infrastructure services in Malaysia, Rentwise is the only provider in Malaysia offering end-to-end IT Infrastructure and Asset Lifecycle Management Solutions, providing unparalleled solutions to our clients, and liberating them from non-core tasks so they can focus on their bottom line. Talk to us on how we can take your business to the next level.

Microsoft has been a part of our daily lives for more than 3 decades now. The Microsoft Corporation introduced the first operating system (OS), Windows 1.0 in November 1985 and the company flourished from then on with many different versions and updates of Windows with many consumers choosing their software and operating system.

Early this year, Microsoft announced they would no longer be supporting Windows 7 and its security. According to analytics company Net Applications, Windows 7, which was introduced in 2009, is still installed on 42.8% of PCs worldwide. Unfortunately, Microsoft has ended the mainstream support for the operating system (Win7) since 2015, but still offers extended support until January 14, 2020.

As announced by the software giant, Microsoft will cease to provide security updates or support for PCs running on Windows 7. However, the OS would still be able to be installed and operate even after Microsoft ends the support; you will just not receive any security, software or feature updates. To avoid security risks and viruses, Microsoft recommends users to consider upgrading to its flagship, Windows 10. Though users can get ‘extended security support’ after the period, it will set them back as much as RM830 per PC, per year, and it only applies for business users.

It has come to no surprise that there is a large tranche of users who are refusing to make the move from Windows 7 mainly due to systems freezing, refusing to install present USB drives, including dramatic performance impacts on essential software. As reported by TechRadar, the number of people using Windows 7 remained pretty static month on month. The study shows Windows 10 enjoyed a 44.1% share of the overall operating system market in April while Windows 7 still accounted for 36.43%. That figure hadn’t moved much from 36.9% in December 2018.

The cost of maintaining a PC that’s older than four years is the same as getting a new machine. A study by Techaisle, a leading global Small and Medium-sized Businesses (SMB) IT market research and analyst organization, shows that PCs older than four years are 2.7 times more likely to undergo repairs resulting in loss of productivity. Many SMBs rely heavily on their PCs for day-to-day tasks. However, 7 out of 10 SMBs surveyed have PCs older than four years that significantly increases maintenance cost. The material impact by inactions, i.e. preserving an obsolete OS in your organization led to WannaCry ransomware invading Windows XP in 2017, causing billions in losses and crippled organizations.

However, existing PCs running on Windows 7 can be upgraded to Windows 10, provided they meet the minimum requirements set by Microsoft such as having at least a 1GHz processor. Windows 10 Home is listed for RM919 and Pro for RM1,299 on Microsoft’s website.

Beyond taking a conservative approach, we are able to help business stakeholders alleviate concerns over the end of support for Windows 7 as all retired PCs that go through the remanufacturing process in Rentwise are equipped with Windows 10 Pro operating system. Talk to us to find out the many cost-effective options we have in addressing this unavoidable migration. As the leading provider of Green IT Infrastructure Services with 18 years of experience, we deliver products and services with a valued difference whilst protecting our environment.