Business environments are increasingly dynamic and driven by digital transformation, continuous organizational improvement goals and the need to be fast and flexible. Technology is an enabler for change and a catalyst for innovation. Companies must be agile when reacting to an evolving business landscape and open to new strategic opportunities when they arise.
Successful cash flow management determines overall organizational flexibility and the ability to meet IT demands. When cash flow is restricted, projects get shelved, resources constrained and innovative ideas fail to launch. Research studies from Dell Technologies Digital Transformation Index have shown 94% of businesses face barriers that prohibit advancement in digital transformation.¹ The lack of budget and resources are cited as one of the top three reasons stifling this progress and 89% of organizations recognize the need for more agile IT infrastructure to allow for contingencies.¹ There is a long wish list of things that should be implemented to enhance IT infrastructure, improve efficiencies and alleviate operational impediments. Unfortunately, cost control often takes precedence over technology improvements and valuable time and money is spent on maintenance, managing software upgrades and security patch work.
Technology Rotation* changes the traditional fixed cost CAPEX approach to technology acquisition to an OPEX model that provides businesses flexibility and liquidity.** Companies can accelerate and enhance digital transformation with a planned refresh of assets, thus optimizing productivity and overcoming challenges throughout the technology lifecycle. When rotating, cutting-edge products replace outdated, slower and inefficient technology at a pre-defined time and helps ensure the organization is ready for the next wave of innovation.
Maximize Cash Flow
Technology Rotation provides increased flexibility to manage cash flow and helps avoid valuable cash from being locked into intensive capital expenditures. Cash is freed from long-term IT infrastructure investments by spreading payments for technology over time. Short-term or long-term payment terms can be selected based on business needs.
Organizations have greater control of cash utilization and are better able to forecast cash usage with predictable payments over time. Finance has the satisfaction of having clear insight into expenditures allowing cash to be reallocated and invested into operations and IT priorities with higher ROIs.
Asset Management
Dell Technologies is a single payment solutions provider for technology acquisition. IT technology such as servers, storage, PCs, networking, software and support can all be packaged together into a Master Lease Agreement with the flexibility to easily add technology as business needs demand. At the end of the payment term, customers have the flexibility to return, make renewal payments or purchase the assets.
Free up Resources
Since organizations are employing the latest technology and the maintenance is managed by Dell Technologies, IT resources can be freed from many menial tasks and reallocated to more meaningful projects. Excess funds from higher cash flow efficiency provides the flexibility to add IT head count to critical projects and brings about greater employee satisfaction and productivity.
Performance and Security Improvement
With the latest technology in use, there is greater protection against security threats and improvements in performance which can translate into reduced downtime. Equipment operates faster, saves power and additional computing power is more easily installed and upgraded. This removes much of the stress and labor to address IT support issues required to replace or maintain legacy systems and there is confidence the equipment will be running at peak performance.
Sustainability
Technology Rotation promotes sustainability and responsible business practices. It contributes to the circular economy by refurbishing and remarketing 95% of assets. This recirculated equipment is put back into productive use. The remaining 5% is recycled in adherence with local regulatory guidelines such as EPA in the United States, WEEE in Europe, and NCTRS in Australia.
Technology Rotation from Dell Technologies can be an integral part of modernizing your IT environment and optimizing your cash flow. We invite you to learn more about Technology Rotation or contact your Dell Account Manager today.
¹ Source: Survey conducted by Vanson Bourne on behalf of Dell Technologies, July & August 2020
*All websites referenced in this article are intended for readers located in the United States only. Readers outside of the United States may access their county’s website by selecting their location from the location menu. Products and offers may not be available or may vary by country.
**Payment solutions provided and serviced by Dell Financial Services L.L.C. or its affiliate or designee (“DFS”) for qualified customers. Offers may not be available or may vary in certain countries. Where available offers may be changed without notice and are subject to product availability, applicable law, credit approval, documentation provided by and acceptable to DFS and may be subject to minimum transaction size. Offers not available for personal, family or household use. Dell Technologies and the Dell logo are trademarks of Dell Inc. Restrictions and additional requirements may apply to transactions with governmental or public entities. FAIR MARKET VALUE (“FMV”) LEASE: At the end of the initial FMV Lease term, lessee may 1) purchase the equipment for the then FMV, 2) renew the lease or 3) return the equipment to DFS.
