Best Practice Report

Lease Or Buy? Funding Server Life Cycles

Technology And Procurement Specialists Must Weigh In Equally

Brad Day
 and  two contributors
Aug 11, 2008

Summary

The office of the CIO is under constant pressure to meet the financial expectations of executive management by continually lowering the life-cycle cost of the computing infrastructure without sacrificing any of the expected feature/functionality. When it comes to big-ticket infrastructure investments like servers, the decision to lease or buy is always a big one. While the CFO should make the final decision, the IT infrastructure organization plays a strong hand in influencing the lease or buy decision. Improving the infrastructure life-cycle cost structures means improving the four major categories of cost: the cost to acquire, maintain, retire, and finance.

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