February 20, 2015
There are a few things in life that will remain constant till the end of time. They include death, taxes, and the ever-changing world of technology. As soon as we make a technological purchase today it unfortunately becomes outdated tomorrow. Ignoring your company for a moment just think about the last time you bought a car. The moment it was driven off the lot the value dropped instantly by a few thousand dollars. This same scenario occurs in every technological purchase made by a company. As a result, more and more owners and chief financial officers are being slapped in the face with a basic business 101 concept – why buy a depreciating asset.
The method of buying technology on a lease agreement is not new or even earth shattering. Historically, both business communications providers and equipment manufacturers have offered leasing options. However, within the last year or so, subtle changes by a select group of providers across the country have made leasing versus buying the right decision for any business. These changes have eliminated technology’s two greatest risks – obsolescence and price (also known as outright ownership).
Voice and data communications is the heart and life-blood of every company and having the latest technology has a major impact on an organization’s efficiency, profitability, and competitiveness. As a result, Prime Telecommunications launched the Prime Simple IP – Current Technology Assurance Plan (C-TAP) with the assistance of Technology Assurance Group (TAG), an organization of independently owned North American business communications providers with combined revenue of over $400 million in voice and data products and applications.
C-TAP ensures that the communications environments are refreshed with the latest advancements and value added solutions, thereby eliminating technology’s obsolescence. For instance, updates (also known as refresh) to a company’s voice and data system can occur anytime after 24 months with no change in their monthly payment. Additionally, both labor charges and software upgrades are waived. If a product was purchased the old fashioned way from say Cisco or Avaya the business owner would get hit with thousands of dollars in software upgrade expenses. A program like C-TAP prevents this type of situation.
Here’s a simple example that illustrates how C-TAP works. Companies are losing significant amounts of money on a daily basis because they don’t have sufficient technology to effectively manage their organizations. For example, many businesses do not have data back up, message on hold, or unified messaging while others are utilizing antiquated desktop PCs. Under C-TAP, companies that could not afford this technology before can now simply add it with no change in their monthly commitment.
Furthermore, C-TAP focuses on the cost of technology rather than its price, thus eliminating the second risk. This is a mind set change for owners and many business communications providers not engaged in a program of this sort. Because of C-TAP, companies are able to transfer technology costs from a capital expense to a fixed monthly expense absorbed by an organization’s operating budget. This enhances the financial health from both tax and budgeting standpoints.
Programs like C-TAP have changed the way technology is purchased now and forever. It has successfully eliminated the traditional risks associated with technology – obsolescence and price. By taking control of the purchase process in this manner, the owner is finally experiencing a true win for their business because they now have the means that will increase profitability, while giving them a competitive advantage in their marketplace.