Why Approaching IT as an OpEx is a Smart Business Strategy

Evolve Budget OpEx

Businesses rely on technology more than ever, but staying current, competitive, and secure can appear to be a costly proposition. The outlay required to acquire new hardware and software licenses for each user in your organization can add up quickly, and then there is the question of how to provide the necessary ongoing support to keep things running smoothly.

However, there is a particularly effective approach that can change your IT costs from a large capital expenditure to a much more affordable operating expense — one that allows you to acquire the necessary hardware, software, and IT support for a flat monthly cost (per user), while keeping you agile to meet future needs.

The Benefits of Shifting your IT costs to OpEx

Traditionally, CFOs favoured capital expenditures (CapEx) to Operating Expenses (OpEx) due to the advantages provided by amortization and depreciation over a period of time. And for large static investments such as land, buildings, specialized equipment, and other purchases based on long-term projections, it made sense. However, this approach has three distinct disadvantages:

  • High-cost items are frequently subjected to long approval processes and comprehensive budget forecasting, slowing down acquisition and adoption
  • To realize or extend the ROI on equipment, you need to hold onto it longer, even when more suitable technology becomes available.
  • Estimating future capacity needs for static hardware or software can be tricky and complicated

The pace at which technology is developing is making it increasingly difficult to predict these future needs; consider the rapid rise of mobile computing, cloud storage, and the shift to SaaS. IT infrastructure needs are becoming less predictable as new demands, delivery models, and technologies emerge.

These are some of the reasons to why it’s becoming increasingly popular to approach IT expenses as an OpEx, and why it’s becoming increasingly evident that IT procurement is evolving.

Instead of being tethered to technology costs based on (likely outdated) long-term projections, organizations are increasingly looking to pay only for the IT services they need, when they need it, and are looking for the ability to scale up or down as required.

 


Related Blog: How to Appraise a Bundled IT Solution Like a Pro

Evolve Provides Predictable & Manageable IT Pricing

Evolve is a one-stop shop for all of your IT needs. It is the first smart-bundle of its kind that offers unequaled solutions for IT problems. Our team takes care of all of the tedious day-to-day hardware and software management and support, handles set-up, integration, and even EOL.

We offer businesses the ability to build an IT solution that meets their needs by offering customizable packages that include software, hardware, or both — all backed by 24/7 support. These bundles make it easy to budget for IT expenses: one fixed price per user, offered on a 36-month term.

Just need software and support? We can do that.

Looking to lease fresh new devices to keep up with your demands? We’ve got options.

Want a full-subscription service to meet every need? We can deliver!

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A Solution that Gives You Peace of Mind

With Evolve you don’t have to worry about the stress of fluctuating monthly IT costs. Evolve offers customizable flat-fee packages that allow you to save on the services you need and avoid paying for ones you don’t. When working with us, you’ll see your IT challenges transformed into a streamlined system that frees up resources to focus on what you do best.

Check out the e-quote calculator to see how Evolve can save you money! 


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