Shifting Industry Trend, from Purchase to Leasing?

February 28, 2009 – 10:30 am
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Storage I/O trends

I’m seeing and hearing a trend talking with vendors, vars and customers of what appears to be a shifting trend from purchasing to leasing of IT equipment which for some might be as surprising as saying that the sun rises in the east and sets in the west. Typically, or at least looking back in time, leases tend to be popular when cash is at a premium or during rapid growth phases such as during the dot com craze bubble of last decade.

Purchasing tends to be more popular when lease rates are high or when cash reserves are enough to take advantage of buy opportunities Consequently with tight credit and focus by many organizations on cash flow and cash reserves, it should not be as much of a surprise to see a shift to leasing. However what’s a bit different from earlier economic downturns when IT organizations typically shift from purchase to lease, is the tight credit markets or ability of some organizations to finance acquisitions. Consequently it will be interesting to see if there is a shifting trend from purchasing to lease particularly as the credit markets begin to open.

What are you seeing or doing, purchasing, leasing, out-sourcing or shifting to managed service providers or doing nothing?

Ok, nuff said.

Cheers gs

Greg Schulz – Author Cloud and Virtual Data Storage Networking (CRC Press), The Green and Virtual Data Center (CRC Press) and Resilient Storage Networks (Elsevier)
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