Owning Your Own Hardware Becomes Less Practical in the Age of Digital DisruptionPosted by
As digital disruption threatens to shake up every industry, hiring your IT equipment allows your business to remain nimble when facing new challenges.
Cloud services are creating an unprecedented level playing field that allows small business to punch above their weight while granting large enterprises the ability to remain nimble against growing competition. Computing power was once a prohibitively expensive resource but the cloud puts it on tap, turning it into a pay-as-you-go service just like the other utilities your business relies on such as power, water and gas.
This revolutionary shift is fuelling a wave of digital disruption that threatens to wash away those who don’t move with the times, warns Paul Shetler – former Chief Digital Officer of the Australian Government’s Digital Transformation Agency and CEO of the Digital Transformation Office. It has lowered the barriers to entry in sectors that were once dominated by a handful of powerful incumbents, plus it has opened the door to global digital companies that aren’t hampered by geographic boundaries.
A Sloan Management Review survey found that 90% of executives anticipate their industry will be digitally disrupted to either a great or moderate extent. But at the same time only 44% of executives thought their company’s preparation for disruption was adequate.
Of course, most businesses can’t move absolutely everything to the cloud, but renting allows you to bring the same flexibility to your in-house hardware – making it easy to scale to meet new challenges.
Renting equipment turns a formidable upfront capital expense into a more manageable ongoing operational expense. It makes it easier to access more powerful equipment, perhaps used by your competitors, which would be out of reach if you were forced to pay the outright price tag.
In this way, renting hardware offers the same flexibility as renting enterprise-grade software under the cloud-based Software as a Service model. You have the flexibility to quickly respond to seasonal demand and other market conditions, renting more gear when you need it most and returning it when you no longer need it to ensure it’s not weighing down your bottom line.
Renting also eases some of the growing pains experienced by businesses as they attempt to walk the fine line between under and over-investing in new equipment. Eliminating such a significant capex hit frees up capital to invest in other areas of the business.
Renting also makes it easier to upgrade to the latest models and enjoy the productivity boost that comes with the newest generation of hardware, instead of being trapped in long multi-year hardware refresh cycles that ensure you’re always one step behind. You also eliminate issues like ongoing maintenance and repairs.
With digital disruption on the doorstep of every business, the flexibility offered by renting your hardware can be the key to success when facing nimble competitors on all sides.