Buying vs. Leasing IT Hardware: Time To Weigh the Pros and Cons

Virtually every type of company needs IT hardware and software to conduct business. Phones, laptops or desktop computers, servers, network equipment—any or all of it is necessary as processes continue to become more digital.

In fact, worldwide IT spending (hardware, software, and services) is growing on a yearly basis. Gartner reported that companies will spend $4.6 trillion on IT equipment by the end of 2023. This represents a 5% increase from 2022’s $4.1 trillion, as businesses look to enhance their operational efficiency with the use of IT hardware and software.

For many cost-conscious companies, utilizing IT equipment isn’t the issue. Plenty of tasks get completed faster and more accurately when using computers and automation software. The bigger question focuses on how to address an ever-growing IT budget: should you buy or lease IT hardware?


For many businesses, buying IT hardware is the way to go. Let’s review the advantages and disadvantages that come with hardware and software ownership.

Pros of Buying

As technology continues to evolve, early adopters of the new tech often set the standard for others to follow. Being the first to own new equipment can give a company a competitive edge. What’s more, purchase clauses can prevent vendors from selling the same equipment to competitors.

However, you don’t have to be an industry titan to appreciate the merits of purchasing IT hardware. Buying IT equipment means acquiring assets, which end up on your balance sheet. Depending on your location, you can write off your purchase for tax purposes.

In terms of usage, full ownership of your IT hardware means the freedom to utilize your equipment as you see fit. You can even customize the hardware to meet your exact needs. Plus, you won’t have to worry about possibly violating the terms of your lease agreement, which can lead to penalties or additional costs.

Choose an Authorized IT Provider

When buying IT hardware, it pays to deal with authorized IT service providers and distributors. They have the expertise and the inventory to provide the exact equipment that meets your specific requirements. They also have the after-sales service and support your organization needs to ensure continuity—even when problems arise.

Cons of Buying

Buying instead of leasing means paying top dollar for new equipment, especially IT hardware that features leading-edge technology. For cash-conscious companies, this could put a significant dent in your budget. Large IT purchases might even require a business loan, which can affect your liquidity in the long run.

Owning your IT hardware also means having the sole responsibility of maintaining your equipment. Any major damages can lead to a significant repair or replacement bill, which means even more budget hits. Additionally, IT hardware loses value faster than other assets. A new technology breakthrough can render your equipment obsolete overnight, requiring you to invest in new assets quickly.


Companies with less flexibility and money in the bank might want to consider leasing IT hardware instead. It’s just like leasing other assets, such as buildings and cars. You pay a significantly lower bill every month in lieu of a large bill upfront.

Leasing is a great option if you need equipment in a hurry and have no plans to keep the items for a long time.

Pros of Leasing

Leasing offers a more manageable way to buy IT hardware compared to choosing a capital expenditure route. Not only do you pay a much smaller amount per month, but you can also file this as a recurring expense. This makes it an operating cost, which can be deducted from revenue.

The lease option also frees your company from the burden of repair and maintenance. When things go south, you can simply call in the leasing provider to fix a unit or provide a replacement. And depending on your service agreement, you can upgrade your equipment when new models become available. Renting also eliminates the problem of equipment disposal when it’s time to replace the items.

Cons of Leasing

Leasing also has its drawbacks. For one, you might think you’re saving money when renting equipment. But additional fees for upgrades and other services can raise the bill significantly. Given enough time and inflation, your monthly costs might even overshoot the cost of buying new equipment. And by the time you complete your contract, your IT hardware might already be broken down or, worse, obsolete.

Lease agreements can also blindside customers about certain usage restrictions. Any violations may mean additional penalties or forfeiture of earlier payments.


When choosing between buying and leasing IT hardware, always consider your company’s specific situation and needs. Here are some points to consider before making your decision:

  • Budget: Can you afford a capital expenditure at the moment? Or can your budget only afford monthly recurring costs?
  • Scope: Do you need to provide equipment for your full-time staff? Or, do you just need additional equipment to accommodate short-term contract work or remote workers?
  • Usage: How long do you use IT hardware before making wholesale replacements or upgrades?
  • Security and Privacy: Do you work with proprietary information that requires enhanced security?
  • Tax Implications: Do you need to write off IT hardware costs?
  • Maintenance Costs: Can you afford additional repair and maintenance costs for your hardware?


Still unsure on whether to purchase or lease your IT hardware? Vivo Technologies can help you make the right call. We offer a wide range of unified communications and collaboration (UCC) solutions that fit your specific needs.

Choose from our inventory of products from UCC industry leaders. Vivo also offers leasing options so you can maintain your leading edge even as you manage your budget.

Learn more about how Vivo Technologies can help you stay on top of your game. Reach out today and share the challenges you’re facing. We can’t wait to work with your team.

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