The Advantages and Disadvantages of Purchasing Computer Equipment

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Letter Analyzing The Advantages and Disadvantages of Purchasing Computer Equipment In any growing business, the reliance on information technologies (IT) continues grow exponentially as a business gains momentum in its key markets. As business growth continues, many enterprises evaluate leasing versus buying as a means to continually support operations as the expand. The intent of this letter to evaluate the advantages and disadvantages of purchasing versus leasing equipment. Analysis of the Leasing Option As our enterprise continues to grow rapidly, a leasing option for IT equipment presents many advantages. These include greater financial flexibility than purchasing the IT equipment, as with leasing payments can be spread out over a longer time horizon. There are often tax benefits of purchasing as well, with the ability to deduct the full cost of least rentals as taxable income over time. A third advantage of the leasing option is the potential for gaining greater support and maintenance through contracts. In addition to these benefits, there is the large cost advantage of being able to replace the least IT equipment for the latest generation of technologies when they become obsolete. Finally the continual advances in virtualization technologies by software companies including Microsoft, VMWare and others all are contributing to a much greater level of flexibility in leasing options across the life of a lease. The disadvantages of the purchase or lease is that

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