Enterprise Connection, a national infrastructure solutions provider, has structured a finance rental plan that allows for the replacement of hardware platforms and peripherals with the latest technology.
This arrangement makes it possible for clients to keep on top of technological change and maintain standardisation of equipment. At the same time, it offers the convenience of sourcing all technology requirements from one source, with guaranteed after sales service. Off-balance sheet finance is an added bonus and, compared with cash purchase replacement, enhances asset management.
Among the first to benefit from this innovative rental finance solution is NMG Consultants and Actuaries. This company is a leading actuarial, employee benefits and personal financial services provider.
According to NMG FD, Hilton Holmes, the company was heading for infrastructure problems, brought about by a need to upgrade old hardware and software
"As with all businesses, our processes depend heavily on our IT infrastructures," says Holmes. "We needed an holistic IT solution from a company that understood the complexity of our needs." Enterprise Connection deployed its full house, tailor-made solution designed to sort out any gremlins in a company`s IT base.
"We realised it was critical to NMG Consultants and Actuaries to roll-out this project rapidly, and that whatever solutions we provided should offer meaningful improvements in efficiency to our client," says Enterprise Connection MD, Paul Moses.
The structure of Enterprise Connection financial packages allows for an accelerated tax write-off compared with cash purchasing. This is a total solution for all IT requirements and it`s a solution that works for cash liquid organisations too because of its advantages in decreasing total cost of ownership.
The trend to IT rental finance in SA appears to be gaining ground. "The rapid depreciation of digital capital equipment, coupled with the inability and reticence of the market to `used` technology, forces most financial institutions to attach a zero value to used digital equipment," says Moses. In addition, it is not unusual to find non-transparent rental finance contracts with complex clauses containing hidden residuals and period extensions, often hiding these in intangible promises of technology refreshers.
This puts paid to a scenario in which businesses become shackled to old, inadequate systems because they cannot afford expensive balloon payments at the point when upgrading becomes a necessity.
As a result, rental finance is now not only refreshingly simple, but also much more all encompassing. A further advantage of this kind of finance rental package is that one supplier now answers for anything IT-related.
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