When it comes to IT investment, many SMEs view software as somewhat inferior to, or less valuable than, hardware. These businesses allocate large portions of their IT budgets to purchasing tangible hardware products, often neglecting software investment in the process.
However, contrary to popular belief, software is just as important as IT hardware. Businesses must remember that quality software is needed to run their hardware, so it should be viewed as an equally worthy investment.
So, why do so many businesses prioritise hardware? Well, firstly, when businesses purchase hardware, they have visible proof of investment. Within many companies, IT managers find it easier to get approval for buying hardware, as those in control of the budget often want to see physical proof of where the money went. There is also a common misconception that software is ‘simpler’ to create: if software such as apps can be created from a bedroom, then why does it deserve such a significant investment?
Software includes everything from operating systems and application servers, to databases and apps. In reality, the software market is extremely sophisticated and complex; programs require a huge amount of time, money and effort to create.
Not making timely investment in software could negatively impact your business. For example, delaying necessary software upgrades and using outdated systems will inevitably result in increased costs in the long term. What’s more, using older software could affect staff productivity and pose a security risk.
There is no doubt that software delivers good business value. Companies must understand that business value is created through investing in exactly what their business needs, and not just cheaper alternatives.
Companies often struggle securing a finance package for their IT investments, as many funding houses only provide financing for hardware and not the intangible aspect of these investments. However we offer both hardware and software funding, allowing you to purchase the technology you need today. Not only that, but we can also provide funding for subscription services, support and maintenance, training and installation. This allows businesses to finance the full IT solution, spreading the cost over time and maintaining working capital.
Click here to find out more about the benefits of financing your next technology solution.