Cisco network parts are valued for their flexibility, reliability, and ease of configuration. But receiving these benefits can come at a high price, especially if you buy the parts new. As a result, many companies decide to rent or lease Cisco components from an IT service that rents and leases IT equipment. But which option is best for your company? Should it rent, lease, or buy Cisco components? We help to answer this question below.

The Value of Renting

While renting initially involves less expense than buying, it isn’t cost effective in the long run. Consequently, many companies that rent networking components do so based one of the following scenarios:

1. They need to conduct proof-of-concept studies

When a company believes that certain parts would benefit its network, it rents the parts to test its conclusion. If they work as expected, they are purchased new or as refurbished network parts.

2. Their data center is being moved

Known as data center migration, the relocation of a data center brings the need for backup equipment to take the place of regular equipment while it’s being moved. Rental equipment offers the ideal solution.

3. They need equipment for a specific project

Sometimes a company performs an unusual project in terms of the networking equipment the project requires. In such instances, renting equipment is preferable to buying it.

4. They need to backup their equipment during peak usage

If a company experiences a high volume of online sales during a certain time of year, it may back up its network equipment during that time to ensure sales aren’t lost in the event of equipment failure.

The Value of Leasing

Due to longer contract periods, leasing doesn’t offer the same flexibility as renting. But it does meet long-term equipment needs while avoiding some of the costs of owning equipment, such as cost of purchase and cost of maintenance. In some instances, companies avoid leasing for fear of leasing a product whose usefulness expires before the lease contract does. However, many IT services offer back-end lease protection to prevent this from happening.

The Value of Buying New or Refurbished Network Parts

If you need to use a part for the extent of its lifespan, buying it new or in refurbished condition is the best option. While new components are the most desirable, most refurbished components perform as well as new ones, and cost less than half of their original price. To learn more about which Cisco products are best to buy new and which ones are ideal to buy refurbished, consult with an IT service that specializes in refurbishing Cisco IT components.

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