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Some of the more influential factors to consider in deciding which option is best for a particular installation include initial versus long-term costs, whether the business can afford to tie up capital in computer equipment, and whether the business desires full control of and responsibility for the computer equipment.<\/p>\n\n\n<style>\r\r\n\r\r\ntable#t10 {\r\r\n    border-collapse: collapse;\r\r\n\tborder-width: 0px;\r\r\n\tborder-style: outset;\r\r\n    margin: 20px 0;\r\r\n\tline-height: 2.0em;\r\r\n    text-align: left;\r\r\n    vertical-align: top;width: 100%;border-top: 1px solid #94DBFF;border-bottom: 1px solid #94DBFF;box-shadow: 0 2px 3px rgba(0, 0, 0, 0.4);\r\r\n\t\r\r\n}\r\r\ntable#t10 thead tr {\r\r\n\r\r\n}\r\r\ntable#t10 thead tr th.t10 {\r\r\n    color: #333333;\r\r\n\tbackground: none repeat scroll 0 0 #D1F0FF;\r\r\n    font-size: 1em;\r\r\n    letter-spacing: 0;\r\r\n    line-height: 1.5;\r\r\n\tfont-size: 1.3em;\r\r\n    padding: 4px;\r\r\n    text-transform: none;\r\r\n    text-align: left;border-bottom: 1px solid #94DBFF;\r\r\n}\r\r\n\r\r\ntable#t10 thead tr th#t10.start {\r\r\n\r\r\n}\r\r\ntable#t10 thead tr th#t10.end {\r\r\n\r\r\n}\r\r\ntable#t10 tbody tr {\r\r\n    background: none repeat scroll 0 0 #F0FAFF;\r\r\n}\r\r\ntable#t10 tbody tr.table-alternate {\r\r\n    background: none repeat scroll 0 0 #FCFEFF;\r\r\n}\r\r\ntable#t10 tbody tr td {\r\r\n    padding: 5px;\r\r\n\tborder-width: 0px;\r\r\n\tfont-size: 1.0em;\r\r\n\tborder-top: medium none;border-bottom: 1px solid #94DBFF;\r\r\n    text-align: left;\r\r\n\tline-height: 1.2;\r\r\n\tvertical-align: top;\r\r\n}\r\r\ntable#t10 tbody tr td#n1 {\r\r\n\twidth: 15%;\r\r\n\t}table#t10 tbody tr td#n2 {\r\r\n\twidth: 45%;\r\r\n\t}table#t10 tbody tr td#n3 {\r\r\n\twidth: 45%;\r\r\n\t}\r\r\ntable#t10 tbody tr:hover td {\r\r\n}\r\r\ntable#t10 tfoot tr {\r\r\n}\r\r\n\r\r\ntable#t10 tfoot tr td {\r\r\n    background: none repeat scroll 0 0 #D1F0FF;\t\r\r\n\tpadding: 4px;\r\r\n\tborder-width: 0px;\r\r\n\tfont-size: 1.0em;\r\r\n\tborder-top: medium none;\r\r\n    text-align: left;\r\r\n}\r\r\n<\/style><table id=\"t10\">\r\r\n\t\t<thead>\r\r\n\t\t\t<tr><th scope=\"col\" class=\"t10\" id=\"n1\"><\/th><th scope=\"col\" class=\"t10\" id=\"n2\">Advantages<\/th><th scope=\"col\" class=\"t10\" id=\"n3\">Disadvantages<\/th><\/tr><\/thead>\r\r\n\t<tbody><tr class=\"table-alternate row1\"> <td id=\"n1\" class=\"start\">Buying<\/td><td id=\"n2\" ><li>Cheaper than leasing or \r\nrenting over the long run<\/li>\r\n<li>Ability to change system<\/li>\r\n<li>Provides tax advantages of \r\naccelerated depreciation<\/li>\r\n<li>Full control<\/li><\/td><td id=\"n3\" ><li>Initial cost is high<\/li>\r\n<li>Risk of obsolescence<\/li>\r\n<li>Risk of being stuck \r\nif choice was wrong<\/li>\r\n<li>Full responsibility<\/li><\/td><\/tr><tr class= \"table-noalt row2\"><td id=\"n1\" class=\"start\">Leasing<\/td><td id=\"n2\" ><li>No capital is tied up<\/li>\r\n<li>No financing is required<\/li>\r\n<li>Leases are lower than \r\nrental payments<\/li>\r\n<\/ul><\/td><td id=\"n3\" ><li>Company doesn\u2019t own the \r\nsystem when lease expires<\/li>\r\n<li>Usually a heavy penalty for \r\nterminating the lease<\/li>\r\n<li>Leases are more expensive \r\nthan buying<\/li>\r\n<\/ul><\/td><\/tr><tr class=\"table-alternate row3\"> <td id=\"n1\" class=\"start\">Renting<\/td><td id=\"n2\" ><li>No capital is tied up<\/li>\r\n<li>No financing is required<\/li>\r\n<li>Easy to change systems<\/li>\r\n<li>Maintenance and insurance \r\nare usually included<\/li><\/td><td id=\"n3\" ><li>Company doesn\u2019t own \r\nthe computer<\/li>\r\n<li>Cost is very high because \r\nvendor assumes the risk \r\n(most expensive option)<\/li><\/td><\/tr><\/tbody><\/table>\n\n\n\n<p class=\"wp-block-paragraph\">Buying implies that the business itself will own the equipment. One of the main determinants of whether to buy is the projected life of the system. If the system will be used longer than four to five years (with all other factors held constant), the decision is usually made to buy. Notice in the example in illustration below that the cost of purchase after three years is lower than that of leasing or renting. As systems become smaller, more powerful, and less expensive, and as distributed systems become more popular, more businesses are deciding to purchase equipment.<\/p>\n\n\n<style>\r\r\n\r\r\ntable#t11 {\r\r\n    border-collapse: collapse;\r\r\n\tborder-width: 0px;\r\r\n\tborder-style: outset;\r\r\n    margin: 20px 0;\r\r\n\tline-height: 2.0em;\r\r\n    text-align: left;\r\r\n    vertical-align: top;width: 100%;border-top: 1px solid #94DBFF;border-bottom: 1px solid #94DBFF;box-shadow: 0 2px 3px rgba(0, 0, 0, 0.4);\r\r\n\t\r\r\n}\r\r\ntable#t11 thead tr {\r\r\n\r\r\n}\r\r\ntable#t11 thead tr th.t11 {\r\r\n    color: #333333;\r\r\n\tbackground: none repeat scroll 0 0 #D1F0FF;\r\r\n    font-size: 1em;\r\r\n    letter-spacing: 0;\r\r\n    line-height: 2.0;\r\r\n\tfont-size: 1.5em;\r\r\n    padding: 4px;\r\r\n    text-transform: none;\r\r\n    text-align: left;border-bottom: 1px solid #94DBFF;\r\r\n}\r\r\n\r\r\ntable#t11 thead tr th#t11.start {\r\r\n\r\r\n}\r\r\ntable#t11 thead tr th#t11.end {\r\r\n\r\r\n}\r\r\ntable#t11 tbody tr {\r\r\n    background: none repeat scroll 0 0 #F0FAFF;\r\r\n}\r\r\ntable#t11 tbody tr.table-alternate {\r\r\n    background: none repeat scroll 0 0 #FCFEFF;\r\r\n}\r\r\ntable#t11 tbody tr td {\r\r\n    padding: 5px;\r\r\n\tborder-width: 0px;\r\r\n\tfont-size: 1.0em;\r\r\n\tborder-top: medium none;border-bottom: 1px solid #94DBFF;\r\r\n    text-align: left;\r\r\n\tline-height: 1.2;\r\r\n\tvertical-align: top;\r\r\n}\r\r\ntable#t11 tbody tr td#n1 {\r\r\n\twidth: 20%;\r\r\n\t}table#t11 tbody tr td#n2 {\r\r\n\twidth: 80%;\r\r\n\t}\r\r\ntable#t11 tbody tr:hover td {\r\r\n}\r\r\ntable#t11 tfoot tr {\r\r\n}\r\r\n\r\r\ntable#t11 tfoot tr td {\r\r\n    background: none repeat scroll 0 0 #D1F0FF;\t\r\r\n\tpadding: 4px;\r\r\n\tborder-width: 0px;\r\r\n\tfont-size: 1.0em;\r\r\n\tborder-top: medium none;\r\r\n    text-align: left;\r\r\n}\r\r\n<\/style><table id=\"t11\">\r\r\n\t<tbody><tr class=\"table-alternate row1\"> <td id=\"n1\" class=\"start\">Rental<\/td><td id=\"n2\" >Monthly rental = $ 170<br\/>\r\n \u00d7 36 months<br\/>\r\n____________________________________<br\/>\r\nTotal cost over 3 years = $6,120<\/td><\/tr><tr class= \"table-noalt row2\"><td id=\"n1\" class=\"start\">Buy<\/td><td id=\"n2\" >Purchase price = $6,000<br\/>\r\n Scrap value = \u2013 500<br\/>\r\n____________________________________<br\/>\r\nTotal cost over 3 years = $5,500<\/td><\/tr><tr class=\"table-alternate row3\"> <td id=\"n1\" class=\"start\">Lease<\/td><td id=\"n2\" >Monthly lease = $150<br\/>\r\n\u00d7 36 months<br\/>\r\n____________________________________<br\/>\r\nSubtotal = $5,400<br\/>\r\nInitial payment = $500<br\/>\r\n____________________________________<br\/>\r\nTotal cost over 3 years = $5,900\r\n<\/td><\/tr><\/tbody><\/table>\n\n\n\n<p class=\"wp-block-paragraph\">Leasing, rather than purchasing, computer hardware is another possibility. Leasing equipment from the vendor or a third-party leasing company is more practical when the projected life of the system is less than four years. In addition, if significant change in technology is imminent, leasing is a better choice. Leasing also allows the business to put its money elsewhere, where it can be working for the company rather than be tied up in capital equipment. Over a long period, however, leasing is not an economical way to acquire computer equipment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Renting computer hardware is the third main option for computer acquisition. One of the main advantages of renting is that none of the company\u2019s capital is tied up, and hence no financing is required. Also, renting computer hardware makes it easier to change system hardware. Finally, maintenance and insurance are usually included in rental agreements. Because of the high costs involved and the fact that the company will not own the rented equipment, however, renting should be contemplated only as a short-term move to handle nonrecurring or limited computer needs or technologically volatile times.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Evaluation of Vendor Support for Computer Hardware<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Several key areas ought to be evaluated when weighing the support services available to businesses from vendors. Most vendors offer testing of hardware on delivery and a 90-day warranty covering any factory defects, but you must ascertain what else the vendor has to offer. Vendors of comparable quality frequently distinguish themselves from others by the range of support services they offer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A list of key criteria that ought to be checked when evaluating vendor support is provided in the illustration below. Most of the extra vendor support services listed there are negotiated separately from hardware lease or purchase contracts.<\/p>\n\n\n<style>\r\r\n\r\r\ntable#t12 {\r\r\n    border-collapse: collapse;\r\r\n\tborder-width: 0px;\r\r\n\tborder-style: outset;\r\r\n    margin: 20px 0;\r\r\n\tline-height: 2.0em;\r\r\n    text-align: left;\r\r\n    vertical-align: top;width: 100%;border-top: 1px solid #94DBFF;border-bottom: 1px solid #94DBFF;box-shadow: 0 2px 3px rgba(0, 0, 0, 0.4);\r\r\n\t\r\r\n}\r\r\ntable#t12 thead tr {\r\r\n\r\r\n}\r\r\ntable#t12 thead tr th.t12 {\r\r\n    color: #333333;\r\r\n\tbackground: none repeat scroll 0 0 #D1F0FF;\r\r\n    font-size: 1em;\r\r\n    letter-spacing: 0;\r\r\n    line-height: 1.3;\r\r\n\tfont-size: 1.0em;\r\r\n    padding: 4px;\r\r\n    text-transform: none;\r\r\n    text-align: left;border-bottom: 1px solid #94DBFF;\r\r\n}\r\r\n\r\r\ntable#t12 thead tr th#t12.start {\r\r\n\r\r\n}\r\r\ntable#t12 thead tr th#t12.end {\r\r\n\r\r\n}\r\r\ntable#t12 tbody tr {\r\r\n    background: none repeat scroll 0 0 #F0FAFF;\r\r\n}\r\r\ntable#t12 tbody tr.table-alternate {\r\r\n    background: none repeat scroll 0 0 #FCFEFF;\r\r\n}\r\r\ntable#t12 tbody tr td {\r\r\n    padding: 5px;\r\r\n\tborder-width: 0px;\r\r\n\tfont-size: 1.0em;\r\r\n\tborder-top: medium none;border-bottom: 1px solid #94DBFF;\r\r\n    text-align: left;\r\r\n\tline-height: 1.2;\r\r\n\tvertical-align: top;\r\r\n}\r\r\ntable#t12 tbody tr td#n1 {\r\r\n\twidth: 30%;\r\r\n\t}table#t12 tbody tr td#n2 {\r\r\n\twidth: 70%;\r\r\n\t}\r\r\ntable#t12 tbody tr:hover td {\r\r\n}\r\r\ntable#t12 tfoot tr {\r\r\n}\r\r\n\r\r\ntable#t12 tfoot tr td {\r\r\n    background: none repeat scroll 0 0 #D1F0FF;\t\r\r\n\tpadding: 4px;\r\r\n\tborder-width: 0px;\r\r\n\tfont-size: 1.0em;\r\r\n\tborder-top: medium none;\r\r\n    text-align: left;\r\r\n}\r\r\n<\/style><table id=\"t12\">\r\r\n\t\t<thead>\r\r\n\t\t\t<tr><th scope=\"col\" class=\"t12\" id=\"n1\">Vendor Services<\/th><th scope=\"col\" class=\"t12\" id=\"n2\">Specifics Vendors Typically Offer<\/th><\/tr><\/thead>\r\r\n\t<tbody><tr class=\"table-alternate row1\"> <td id=\"n1\" class=\"start\">Hardware Support<\/td><td id=\"n2\" ><li>Full line of hardware<\/li>\r\n<li>Quality products<\/li>\r\n<li>Warranty<\/li><\/td><\/tr><tr class= \"table-noalt row2\"><td id=\"n1\" class=\"start\">Software Support<\/td><td id=\"n2\" >\r\n<li>Complete software needs<\/li>\r\n<li>Custom programming<\/li>\r\n<li>Warranty<\/li><\/td><\/tr><tr class=\"table-alternate row3\"> <td id=\"n1\" class=\"start\">Installation and Training<\/td><td id=\"n2\" >\r\n<li>Commitment to schedule<\/li>\r\n<li>In-house training<\/li>\r\n<li>Technical assistance<\/li><\/td><\/tr><tr class= \"table-noalt row4\"><td id=\"n1\" class=\"start\">Maintenance<\/td><td id=\"n2\" ><li>Routine maintenance procedures<\/li>\r\n<li>Specified response time in emergencies<\/li>\r\n<li>Equipment loan while repair is being done<\/li><\/td><\/tr><\/tbody><\/table>\n\n\n\n<p class=\"wp-block-paragraph\">Support services include routine and preventive maintenance of hardware, specified response time (within six hours, next working day, etc.) in case of emergency equipment breakdowns, loan of equipment in the event that hardware must be permanently replaced or off-site repair is required, and in-house training or off-site group seminars for users. Peruse the support services documents accompanying the purchase or lease of equipment and remember to involve appropriate legal staff before signing contracts for equipment or services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unfortunately, evaluating computer hardware is not as straightforward as simply comparing costs and choosing the least expensive option. Some other eventualities commonly brought up by users&nbsp; and management include<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>the possibility of adding on to the system if the need comes up later;<\/li><li>the possibility of interfacing with equipment from other vendors if the system needs to grow;<\/li><li>the benefits of buying more memory than is projected as necessary, with the expectation that business will eventually &#8220;grow into it&#8221;; and<\/li><li>the corporate stability of the vendor.<\/li><\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Competition among vendors has made the idea of producing hardware that is compatible with competitors\u2019 hardware important for vendors\u2019 survival. Before becoming convinced that buying cheaper compatibles is the way to endow your system with add-on capability, however, do enough research to feel confident that the original vendor is a stable corporate entity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Contents<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/project-initiation\/\">Project Initiation<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/defining-problem-project-initiation\/\">Defining the Problem in Project Initiation<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/selection-projects\/\">Selection of Projects<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/feasibility-study\/\">Feasibility Study \u2013 Determining Whether the Project is Feasible<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/ascertaining-hardware-software-needs\/\">Technical Feasibility \u2013 Ascertaining Hardware and Software Needs<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/acquisition-computer-equipment\/\">Acquisition of Computer Equipment \u2013 Technical Feasibility<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/software-evaluation\/\">Software Evaluation in Technical Feasibility<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/economic-feasibility-identifying-forecasting-costs-benefits\/\">Economic Feasibility \u2013 Identifying &amp; Forecasting Costs &amp; Benefits<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/comparing-costs-benefits-economic-feasibilty\/\">Comparing Costs and Benefits \u2013 Economic Feasibilty<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/activity-planning-control\/\">Activity Planning and Control \u2013 Project Management<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/using-pert-diagrams\/\">Using PERT Diagrams in Project Planning<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/managing-project\/\">Managing the Project<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/managing-analysis-design-activities\/\">Managing Analysis and Design Activities<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/creating-project-charter-avoiding-project-failures\/\">Creating the Project Charter &amp; Avoiding Project Failures<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/organizing-systems-proposal\/\">Organizing the Systems Proposal<\/a><\/li><li><a href=\"http:\/\/www.w3computing.com\/systemsanalysis\/using-figures-effective-communication-system-proposal\/\">Using Figures for Effective Communication in System Proposal<\/a><\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The three main options for acquisition of computer hardware are buying, leasing, or renting it. There are advantages and disadvantages that ought to be weighed for each of the decisions, as shown in the table illustration below. Some of the more influential factors to consider in deciding which option is best for a particular installation [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[6],"tags":[],"class_list":["post-300","post","type-post","status-publish","format-standard","category-project-management","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Acquisition of Computer Equipment - Technical Feasibility<\/title>\n<meta name=\"description\" content=\"The three main options for acquisition of computer hardware are buying, leasing, or renting it. 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