SFS foresees shorter IT purchasing cycle

Resellers should take advantage of shorter refreshment cycles for PCs, mobile devices and software in the UK, according to Siemens Financial Services (SFS).

SFS predict that there will be a continued reduction in the average length of time between IT investment at mid-sized companies over the next two years.

Research by SFS among company finance directors and senior financial managers found the average IT replacement cycle is already shorter in the UK (3.4 years) and Germany (3.45 years) than in the US (3.65 years) and France (also 3.65 years).

Kirstine Wilson, director at SFS, said: “The shortening of IT replacement cycles means more businesses are recognising the value of replacing and upgrading. This is good news for resellers and they should take advantage of it.

“Sustainability goes hand-in-hand with affordability. As long as there are financial products that enable firms to upgrade, then this climate of shorter replacements will last. It also has a lot to do with the availability of new technology,” she added.

The research found that leasing equipment to upgrade technology now occurs at more than double the rate of standard bank borrowing to fund technology investment.

SFS told CRN that the number of UK companies using tech-refresh-style contracts would double over the next two years.

Wilson said: “We are trying to educate resellers about offering finance at the point of sale, as this will provide a broader and deeper service to customers.”

Leanne Gravil, branch manager at VAR CBC Computer Systems, said: “Leasing isn’t something we’ve ever offered before, but several of our customers have asked for it.

“When an IT manager comes in with a list of everything that he wants for the year, it will help if we can provide the leasing at the point of sale so he knows right away what his costs will be.