Research firm, IDC, has claimed technology financing and leasing will outpace growth in the rest of the market as the economic downturn continues to bite.
The Australian technology leasing and financing market reached almost $2 billion in 2008, or 7.2 per cent of overall IT spending, according to a recently released IDC report. This share is expected to grow to 9.6 per cent by 2011.
IDC Research Manager for IT Spending, Jean-Marc Annonier, said financing was being used mostly for enterprise-level equipment across all verticals, but had not yet pushed into the mid-market.
“I’m not sure about its value to the mid-market, but from a business perspective there are a lot of advantages to financing at a time where credit for enterprise equipment is hard to come by,” Annonier said.
Joined with software-as-a-service (SaaS) and managed services, Annonier said the trend would make things more complex for organisations.
“The main challenges to organisations that use these kinds of business models will be the management of all the contracts – IT managers will become contract managers, so will need different skill sets,” he said.
“Channel partners will nee multiple ‘touch points’, so the management of things will become more complex for them as well, although if there is more activity generated through leasing, it will be an overall benefit for the channel.”
Most major vendors are offering financing options currently. Microsoft is offering 0 per cent interest on some solutions, with Cisco and IBM also seeing a spike in interest.