The Best Workplace Technology Still Requires an Investment
Every business needs to consider how they spend limited resources on technology. Each dollar spent on computers, VoIP phones, applications like Microsoft Office 365 or Teams, cybersecurity, or technology training is an investment in your business and your employees.
Tech is critical to your business, and by extension, your employees: from open workspaces that inspire creativity, the ability to safely and productively work from home, and the ability to use tech to be more organized and effective. When you give them the tools they need to do their jobs, you will notice your employees are more engaged, more efficient, and show increased productivity. As a result, your products and services improve. A business that doesn’t use technology to change and improve will find they are slower and have narrower profit margins than their competitors.
Fortunately for small and medium businesses, how you deliver the best workplace technology has changed. This blog examines the significant differences between purchasing technology and procuring it.
Capital Expenditures vs. Operating Expenditures
Years ago, the way businesses acquired the technology they needed was by buying it, plain and simple. This made all the hardware and software fixed assets of the business expensed out through depreciation over the years. They were part of the value of the business, and while this may work for equipment and vehicles, it doesn’t for tech. In fact, computers and laptops typically last between 3 to 5 years. Companies tended to replace all hardware at once to get better prices, but this meant a large investment all at once. This creates a complex situation for tax and business valuation purposes. But this difference goes well beyond whether technology is expensed on the income statement or balance sheet.
The modern way to approach investing in technology is by treating it as a pay-as-you-go operating expenditure similar to wages, utility bills, and maintenance. As more and more technology is delivered through cloud computing, IT stops being a static expense. It makes more sense to approach technology as a consumable compared to an asset when you have the ability to buy it when you need it.
Managed Services is the Modern Way to Procure the Tech You Need
Modern MSPs like SBT Partners leverage this scalability to offer technology expenditures as a monthly cost rather than an upfront investment. Now, when your company needs to use the latest, most powerful CRM system, you don’t need to invest in the infrastructure needed to support it. Simply pay for the functionality as you go.
In the business world, simplicity leads to lower costs and improved efficiency… otherwise known as a modern workplace, one that has the agility to react to global changes and take advantage of new opportunities.
SBT Partners Takes This a Step Further
We deliver all the technology your business needs: cloud computing, hardware, applications, all for a predictable monthly “utility bill” style fee. What makes us different is we make this expense predictable. No hidden fees, or usage charges– just reliable technology that scales with the ebb and flow of your business. The result is a budgetable cost that emcompasses everything your business needs.