Chicago — Most insurers would agree that economic times are turbulent. Analysts predict IT budgets will remain flat into 2009. A new white paper from HP Financial Services, the Murray Hill, N.J. leasing and financial services subsidiary of the Hewlett-Packard Co., suggests that a way to preserve some capital is to manage the IT portfolio lifecycle through planned replacement programs—leased equipment. Leasing turns what otherwise would be considered a capital investment--requiring borrowing and/or a significant upfront commitment of cash--into a level operating expense, according to the paper.

“Leasing IT equipment facilitates an ongoing lifecycle management program and establishes regular, scheduled technology refreshes,” according to the report. “It also fits well in an IT management approach focused on reducing total lifecycle expense and ensuring that IT infrastructure meets business needs at all times. Leasing makes it more likely that the enterprise can bring new equipment on board, take advantage of improvements in performance and efficiency, and dispose of outmoded gear before repairs escalate—all with a comprehensive understanding of the costs.”

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