Business white paper

Old technology? Old thinking!

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Out with the owned. In with a new way of thinking. Technology is rapidly transforming—conjuring up both new opportunities and challenges in our global marketplace. You work hard to be a partner to the business. But things are changing and your ability to react is increasingly hampered by the decisions you made in the past.

In today’s world, business success is dependent on your ability to keep pace with evolving business needs, as well as the technology you deliver to your employees. The days of upgrading your workplace technology once every 10 years are ancient history. The proliferation of smartphones and tablets has forced IT to adjust to a more complex support structure. IT financing is also changing to reflect new business realities.1 CFOs are demanding greater flexibility from internal business units, and they are turning to their IT vendors for more innovative and flexible payment solutions. Today, you need the flexibility to adapt quickly to take advantage of new business opportunities and keep employees productive. This degree of change holds a lot of potential for opportunity, but will require a major shift to the traditional business model.

“The old buy/deploy/manage/retire model is looking increasingly antiquated.”2

With ownership comes the responsibility of asset management throughout the entire technology life cycle, including managing the removal and recycling of PCs and printers, a complex process which can often force organizations to hold on to equipment too long, simply because of the burden of dealing with the end of life process, and thus pushing out a needed refresh. In other cases, the burden of handling multiple contracts and IT vendors can make it difficult to streamline the management and security of workplace devices, which is now prompting the interest in having a solution that can be managed on your behalf. In fact, IDC reports that in 2017, nearly 10% of enterprise organizations will begin testing PC acquisition via PCaaS agreements.3 It’s time to rethink how you plan for, acquire and consume technology. The good news is that you have options. The ability to integrate flexible IT Consumption models into your technology investment and procurement process can help you anticipate and respond to business change on a continuous basis.

Business white paper | Old technology? Old thinking!

1,2 IDC, PCaaS Threatens to Shake Up the PC Deployment Game: U.S. Commercial PC Survey, March 2016, #US41049616.

3 IDC Futurescape: Worldwide connected devices 2017 predictions , November 2016, #US41858316

IDC reports that in 2017, nearly 10% of enterprise organizations will begin testing PC acquisition via PCaaS agreements3

HP Financial Services can help customers find new ways to plan for, acquire, consume and adapt the technology needed for workplace transformation.

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One size does not fit allWhat does an IT Consumption strategy mean to you? The first thing you may think of is a utility model that allows you to scale technology use up/down and only pay for what is consumed. But there are many different factors to keep in mind when deciding on the right model for your individual business.

• Perhaps a monthly subscription model that allows you to bundle hardware, software, and services together into a simple monthly payment is the right solution for your business.

• What if you’re looking to have someone fully manage the entire lifecycle of your workplace technology, from acquisition to remarketing or recycling, putting you on a regular refresh cycle so you’re always current with the latest technology, and you don’t have to worry about maintenance costs and services?

• What if you want to offer progressive technology as an employee perk to win the war on talent? Or perhaps your business requires a moderate refresh approach to cater to knowledge workers who command newer technology, but not necessarily the hottest technology available on the market?

• What if your business dictates the need for more on-hand capacity of technology as new workers continuously come on board? A solution that gives you the equipment you need instantly, but only requires that you pay for it once it’s turned on might be the right approach.

Implementing a consumption strategy without careful thought around the core issues you’re trying to address could end up creating as many challenges as you seek to solve. As you build out the technology base your business needs for success over the long-term, look at the issues you’re trying to solve and approaches you may want to take to create flexibility.

Key considerations to ask yourself include:

• Which factors are top priorities as we adapt to a more flexible consumption model?

• What type of refresh schedule will help drive the most productivity for employees?

• Do I need a vendor to provide end-to-end services along with hardware or should we keep that in-house?

IDC surveyed respondents who are considering PCaaS in the next 12 months to understand their top motivators. The top 3 reasons include:

• The ability to deploy only the assets needed based on workload

• The capability to move capex associated with device deployment to opex

• Reduction of the IT procurement workload

IDC, PCaaS Threatens to Shake Up the PC Deployment Game: U.S. Commercial PC Survey, March 2016, #US41049616.

Business white paper | Old technology? Old thinking!

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At InterContinental Hotels Group, an IT Consumption strategy allowed them to create a more dynamic, flexible and cost effective environment that could scale and adapt in line with customer needs. With a built-in refresh cycle, IHG could ensure access to the latest technology with clearly defined renewal points to help minimize potential disruptions. They were also able to leverage a simple, predictable and scalable payment option that helped improve overall cash flow.

By shifting the way you consume and pay for technology, your business can have the flexibility to stay on top of priorities and respond to change faster. New acquisition methods available to you provide a “menu-approach” of technology consumption elements—from usage to payment—allowing you to more easily acquire, deploy, manage and update your environment.

Your business, your plan.IT Consumption models have the potential to help break you free from past decisions and deliver a new way forward. A careful review of the underlying issues you seek to solve will be important to ensure that the challenges in your business can be solved. This approach can help you free up budgets, create investment capacity and build-in the flexibility you need to drive business growth and workplace innovation over the long-term. HP Financial Services can help you think through the outcomes you’re trying to achieve, and explore the options to give you flexibility, predictability and agility that your business needs to keep reinventing.

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© Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

Financing and service offerings available through Hewlett-Packard Financial Services Company and its subsidiaries and affiliates (collectively HPFSC) in certain countries and is subject to credit approval and execution of standard HPFSC documentation. Rates and terms are based on customer’s credit rating, offering types, services and/or equipment type and options. Not all customers may qualify. Not all services or offers are available in all countries. Other restrictions may apply.

4AA6-9301ENW, February 2017

Business white paper | Old technology? Old thinking!