Companies are looking to lease rather than buy IT hardware because of the high cost involved in getting rid of obsolete kit.
Equipment such as PCs and servers are becoming out of date more quickly and disposal costs for owners are rising, analyst firm Meta Group has warned.
Costs include storage, security data cleansing and environmental regulations and, as a result, up to five per cent of the original hardware cost is now being spent on disposal. But this is not being budgeted for when the equipment is bought.
Meta explained that, with very low financing costs, high disposal costs can tip the scales from purchase to lease. "Users must factor rising hardware disposal costs into the budget and initial lease-versus-purchase analysis to ensure accurate, optimal financing decisions," said the analyst.
Sean Williams, managing director of financing and leasing at IT rental service provider Syscap, said that medium sized companies are waking up to a problem that larger companies have faced for some time.
He explained that many have tried giving old PCs away and now are looking at what to do with the next lot.
"For medium-sized companies this is beginning to be an issue they are thinking about. They are just realising the cost of disposal," said Williams. "Large companies already know too well that they have to pay to get rid of machines. They lease and will lease in future."
He pointed out that European legislation on disposal means that companies have to get rid of equipment in an environmentally friendly way.
"Screens can't just be got rid of by throwing them in a skip," said Williams. "It's a big benefit for customers to know that, when a machine is finished with, we will remove it. Because we have the volume we have channels that take the machines off to be refurbished or crushed."
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