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.


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.

Students from SJK (T) Persiaran Raja Muda Musa using the new computers.

THE Sunway Education Group collaborated with Rentwise in a CSR initiative that benefited students from SJK (T) Persiaran Raja Muda Musa.

This collaboration sponsored 40 units of Dell Optiplex 7010 business desktop PCs and Dell 22” Led-Wide Black Monitor, worth over RM52,000.

Out of 33 computers that were sponsored in 2011, only 10 are still functioning, which a class of 43 would need to share.

At SJK (T) Persiaran Raja Muda Musa, many of the computers were outdated and unable to connect to the online learning platform.

As part of community development, Rentwise initiates and runs CSR programmes. Over the years, Rentwise has helped create and upgrade the existing ICT facilities of a number of needy schools and non-governmental organisatiions (NGOs).

“At Rentwise, we are very passionate about education.

“We believe education is the way out of poverty, education gives you a better life, and we were looking for a way that would impact the community, ” said Rentwise CEO Leanne Ooi.

Sunway Education Group director of IT Services Tony Lee said: “When we look at the students using the computers and how enthusiastic they are about learning in a modern way, it makes all the effort we put in very worthwhile.”

Since the first successful launch of a CSR programme in 2009, Rentwise has provided over 573 sets of remanufactured computers worth over RM744,900, benefiting over 17,000 students across various primary and secondary schools as well as several NGOs’ and community centres in Peninsular Malaysia.


Originally published in The Star Online: on 6 Oct 2019. Reproduced here in full.

The Methodist Church, Raub, Pahang runs a hostel for Orang Asli children. The hostel has a capacity of 80, but currently, there are 14 Secondary school going children. Due to lack of financial resources, the Methodist church has reached out to Rentwise to donate computers for the children’s use. Computer savviness will prepare the children to bridge the digital gap and arm themselves for a brighter future.

Rentwise Sdn Bhd is a provider of Green IT Infrastructure services. Its Remanufacturing 16 step process reduces CO2 by over 80% thus ensuring sustainability and a greener environment. As part of our CSR initiatives, Rentwise donated 10 computers towards this programme. Its belief that every children is to be educated and to be better equipped in IT to ready themselves towards the digital era.

Sapphire Kidz Sdn Bhd, established in 2017 caters to young children (ages 3 – 14 years old) with special needs ranging from Moderate Learning Difficulties, Autism Spectrum Disorders, Down Syndrome, Dyslexia, ADHD and Early Learning Difficulties among others.

A small centre, managed by 5 specialised staff, assist about 14 children in their individual disability. The programmes conducted are carefully structured, personalised and tailor made to meet every individual’s needs as no 2 disabilities are the same. It is important to have a stimulating environment where the child is coaxed to participate in the activities that are organised to develop their individual senses. Emphasis is given to improving fine and gross motor skills, social and emotional development, self help skills, just to name a few.

The belief that every child has a right to education and to live a meaningful and purposeful life spurs Sapphire Kidz to help these children to discover and develop their individual strengths and resourcefulness at the best of their ability.

Rentwise’s CSR initiatives began some 11years ago and till to-date maintains the commitment to assist via our sponsoring of computers especially to schools and NGOs’ in need.

Upon their request, Rentwise came forward to assist Sapphire Kidz with 2 refurbished desktops on 13th September, 2019. Fun but educational programmes are shown to help the children especially those with motor and sensory issues which is vital to their development and also for the children to familiarise themselves with a computer. The pictures speaks for itself…

What might you get when a trusted partner in Green IT Infrastructure Services and one of Malaysia’s largest conglomerates come together for good? Safe and healthy tech-savvy kids!

In this collaboration between Rentwise and the Sunway Group, two industry players gave back to the community, sponsoring 40 remanufactured PCs worth almost RM52,000 to SJK(T)Persiaran Raja Muda Musa, Klang. Come 2020, the school will be celebrating its 100th year platinum jubilee.

A CSR initiative should be aimed at making an impact. Speak to the school kids and you can expect to find that they’ve benefited greatly.

Working to ensure that children have safer, more sustainable and more efficient means of access to technology is a responsibility that Rentwise and the Sunway Group have taken in their stride. In fact, this marks their 5th CSR partnership in the past 2 years.

The manufacturing of standard PCs involves the use of carbon materials. While it exhaust irreplaceable natural resources, the CO2 emissions hampers sustainability in the long run. These emissions greatly impact the environment and contributes to global warming thus affecting the future generations.

Rentwise is certified and experienced in the remanufacturing of computers over the last 18 years. Through the use of remanufactured computers,CO2 emissions can be significantly reduced by over 80%, thus helping the environment while educating schoolchildren the benefits from reusing.

Being one of  Malaysia’s leading green IT infrastructure service provider, Rentwise is committed to engaging with the latest industries’ movers and shakers to enhance and to keep pace with the ever changing landscape. We are proud to have participated and be a part of the three conferences in June 2019 titled Federation of Manufacturer Malaysia ICT Conference, SME CEO Forum, and Green Build Conference.

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.