Finance companies that arrange leasing are cashing in on the year 2000 as users shy away from system ownership.
David Roberts, national development IT manager at Schroder Leasing, said companies were changing their IT infrastructure because of the changes demanded in dealing with the year 2000. While companies knew the changes would be necessary to cope with the millennium bug, many had not worked out how to pay for it.
Roberts said: 'Budget is fast becoming the key issue for Y2K compliance across the entire spectrum of companies, large and small. Leasing can bridge the gap between what the business needs and what the business can afford.'
He added that public sector organisations had shown the most interest because they faced greater budget restraints.
'To achieve their IT goals, companies may need to look beyond their budgetary constraints,' he said. 'Companies are addressing what actually needs to be achieved in terms of hardware, software and the network. The obvious question for them is how they are going to afford it.'
He said a survey of clients had shown that 73 per cent were interested in leasing specifically for the year 2000.
'There is a danger that companies will cut corners and end up creating a whole new set of problems because their current budgets do not allow for the necessary expenditure,' commented Roberts.
Schroder has now set up a system upgrade programme allowing an existing network to be upgraded or replaced to take advantage of the Year 2000 problem.
Micah Thompson, business development manager at Dana Commercial Credit, said many companies were unwilling to place their budgets and faith in owning systems.
'It's definitely the way forward. Many customers are seeing it as the best and most cost effective way to combat the problem.'
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