Purchase, Lease or Consumption-Based: Which is the best way to acquire your IT?

Balancing ease-of-use, functionality and cost is a constant struggle, especially as the types of solutions available increase every year. There are three primary acquisition methods for IT infrastructure: outright purchase, leasing and consumption-based models. The best model is ultimately dependent on your business needs. First, consider the advantages and disadvantages of each model. 

The purchase model has the advantage of the greatest control over the infrastructure but the disadvantage of requiring upfront capital investment, which can be significant. Diligent planning is required before making a purchase decision. You will need to understand the capacity that will be required for the lifetime of the infrastructure — this is easy to either underestimate or overestimate. Additionally, if your organization has peak and valley workloads there may be times when you will be underutilizing the infrastructure you’ve bought. 

Unlike the purchase model, the lease model allows your organization to utilize infrastructure only for its useful lifespan, returning it to the lessor when it’s no longer needed. This avoids upfront capital expenditure and frees up funds to evolve your infrastructure alongside changes in business needs more easily. Leasing does have similar disadvantages to the purchase model by requiring capacity and usage planning, as well as preparing for underutilization of the infrastructure you are paying for. 

The consumption-based model is the most flexible option. This model allows organizations to commit to a baseline of capacity and then scale infrastructure accordingly. This option allows you to increase capacity when needed and scale back resources when not in use. The shift in pricing model means you are paying for what you use and using what you pay for with little to no underutilization. 

Download the whitepaper from Dell Technologies and Intel® to learn more!