10 reasons to consider IT Rental with MUTIARA SMART COMPUTING SDN BHD

1. Rental greatly improves the cash flow of a company as it frees up its budget for the purchase of other assets that depreciate less than PCs. Just how much cash flow are we talking about? Studies have shown that a typical call centre requiring a 200 PC seat capacity would need to budget about RM600,000 just to acquire the PC hardware alone. If a rental model were used, this cost can be potentially cut by half in a similar scenario.
   So, for instance, if you’re in the manufacturing business, the money you save through rental can be used to buy other machineries that have longer depreciating cycles. Consequently, it stands to reason that by renting, your company’s cash flow can then be invested into other parts of the business such as R&D (research and development), marketing and/or advertising for more effective use.
2. Rental also brings cheer to chief financial officers of a company, as it enables the organization to establish fixed costs for the use of IT equipment. This makes it easier to identify the actual costs of IT utilization, which can then be included in yearly budgets for better planning purposes.
3. On the financial operating front, rental payments can be treated as an operational expense and not as assets as would be the case in capital expenditure. This effectively allows a company to track the costs by department, and to measure expenditure and allocate budgets accordingly.
4. Rental also frees the company from having to commit to capital purchases which would inevitably “lock in” your options as you can’t roll back capital purchase decisions. In fact, it gives customers the flexibility to make changes during the rental period, which cannot be done if capital purchases were made. This ensures that a company will always get good quality products, which in turn would reduce ongoing management costs caused by poor quality or interoperability issues.
5. Many companies will agree that a three year cycle is an optimal interval to refresh their PCs. However, the truth is far from reality as anecdotal evidence suggests that financial consideration and organizational changes often disrupt the change-out cycle. This results in many companies delaying or completely shelving their refresh plans, which will lead to more issues in the future years. Leasing will help alleviate this problem as it “forces” companies to consider renewing its contract when the three years are up or better still, to go ahead with a complete change out because of the high cost of continuing the old leasing contract.
6. For IT managers, the rental model helps to establish a defined lifecycle for IT equipment. This helps them keep track of old PCs and stops the practice of “harbouring”, or what is commonly known as the “keeping it forever until it breaks down” phenomenon. The direct result is that the IT manager will always know when it’s time to upgrade without having to struggle with budgeting.
7. The rental model also helps optimize a company’s computing needs as not every department within a company would need the same high-end PC specifications as another. For example, a file or a print server may not need to have the latest and the best processing power as opposed to the web or application server. The rental model would help ensure that the best machine is used for the appropriate job.
8. Rental also helps the IT manager keep a record of the various hardware configurations of the company’s PCs to enable easier support and maintenance. This is extremely useful as the cost of IT support today is on the rise.
9. Leasing encourages proper asset management and companies can do away with the taxation and software licensing costs related with old systems that are lost or unused but still accounted for on the books.
10. Rental also means there will be no disposal issues and associated costs when the time comes to get rid of the PCs. All that needs to be done is to contact Mutiara Smart Computing Sdn Bhd, arrange for a pick-up, and swap your PCs for new ones.