IT budgeting | NEC Today

Frequently organizations adopt a “make-do” attitude when it comes to technology, primarily because the acquisition of new technology is often expensive and time-consuming to implement. Add to that the potential complexity of integration to legacy systems, hardware and software upgrades, and an increase to capital expenditures, and many organizations feel it is necessary to maintain rather than upgrade. Until…

A multitude of events can create demand for new and upgraded IT resources, including:

You’ve landed that big fish – acquiring a new major client that requires certain amounts of integration to your systems or you simply need to improve performance.
An acquisition may be in the works – whether you are looking to expand via acquisition; be acquired or merge with another company, having up-to-date IT assets will help ease the transition.
The company is ready to grow – perhaps the organization has reached a milestone and is ready to expand, either to new markets or geographic areas. The need for a solid IT infrastructure to accommodate expansion is incredibly important.
An existing IT vendor folds – it’s sad, but can happen. Now, you have technology without support and are in need of a rapid change in order to ensure your organization is not adversely affected.

You may find that you need to act quickly, and need to do something that does not negatively impact your budget. Where do you turn?

Your Technology Funding Source

Traditional sources are not always the most effective means to fund your IT needs. You need a source that is responsive and understands the nuances of acquiring new technology.

“At NEC Financial Services, we start with a transaction team and use underwriting and financing contracts that are customizable to the client needs,” said Herschel Salan, vice president, NEC Financial Services. “Our unique system enables us to use experienced people, coupled with 30 years of knowledge, to create a better solution that ensures our clients have what they require to grow their businesses.”

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The NEC Financial Services team offers several options for the financing and leasing of technology acquisitions, and yet the approach can be very different than you will find at a more traditional lender or bank. For example:

Programs based on customer requirements – most organizations face the same business challenges that are not easily resolved with standard finance transactions. NEC Financial Services provides different types of programs based on customer requirements. From a purchase to own arrangement to an OPEX finance option, the program is designed to fit the business need.
Off Balance Sheet – many organizations find it more attractive to acquire technology as an operational expense, giving them additional financial benefits.
Driven by cash flow – if an organization has a specific budget amount they need to meet, NEC Financial Services will work to structure financing to accommodate that number.
Our job would be to align the budget expense to the cost of that technology over time. For example, with a $10K budget a month – the goal would be to get that number to $10K or less.
Beyond the traditional – NEC Financial Services designs financing options to ensure that clients can receive funding for their technology upgrades and investments, even during the installation or implementation phases. . Many times this can be accomplished through various offerings that include direct and working capital loans or structured financing.

“Our team becomes very involved with our clients to understand the technology, how it will have a positive impact on their business and how to best fund it for success,” said Salan. “Whether it’s progress loan financing in the early stages of a longer term transaction, or even multiple vendors and multiple technology types, we structure our financing to meet the business needs.”

More Than a Banker

“Our goal is to have long-term relationships with our clients where we support their ongoing business growth,” continued Salan. “We ensure that we understand their business requirements and growth strategies so we can structure finance options to meet their needs and successfully implement their plans.”

In addition to the financing options, NEC Financial Services also provides asset tracking.

“We find that many of our clients require a more robust asset tracking system than they have in-house, so we provide that service,” said Salan. “We can track assets by jurisdiction, county, state, and zip code, taking the burden from our clients while providing added value.”

Salan also said that many clients have a need for protection against technology obsolescence. This is one of the drivers for determining the right finance solution and term.

“While the length of a typical technology lease is between three and five years, we create terms based on the customer’s decision,” said Salan. “For those that obsolescence is a real issue, we can structure shorter terms so they can keep up with important technology updates to grow their businesses.”

Salan and his team work through the whole corporate lifecycle, ensuring that the technology will grow to meet current and future needs.

“It’s an advantage to our clients that we are agile and have business growth at the core of our decisions,” said Salan. “We understand how technology can help a business grow and reach the next level, so we are eager to explore those options with our clients.”

To learn how NEC Financial Services can provide technology financing on your terms, contact us today!

Your IT budget planning is most likely well underway and you are probably putting the finishing touches on it. Or perhaps you work for one of those organizations that has a fiscal year that does not align with the annual calendar, and you are in research mode. Either way, deciding where money will be well spent is a significant planning process. The word “budget” can be such an intimidating and restricting word to many…but it’s an essential annual process and perhaps could be viewed as a way to limit unnecessary expenses and maximize the value of the investments to enable your business.

To prioritize your 2015 IT expenses, it is important to consider the following to ensure you have allocated enough budget dollars. Not only will considering these as priorities help set up your IT team for success, but the addition of strong strategic partners for managed services will place your core team in the driver’s seat for more strategic and revenue-generating activities, leaving other less-strategic IT tasks to a value-added partner.

The Complexity of Big Data

Big data is here, and will continue to be an important part of every organization’s IT department. It is important to recognize that multiple aspects of a big data strategy enable your access to the best information. These include:

Acquiring and storing data securely
Analyzing data effectively
Ensuring your team has the right skills to manage this process

Fortunately, you do not have to go it alone. NEC offers complex Analytics and Big Data that turn your data into valuable insights for your business. Think of these insights as priceless intellectual information your business can use to make smarter decisions. Maximize your business potential by using analytics to decrease costs, improve revenue, drive profitability and increase customer satisfaction.
While your team is focused on the core of your business, the NEC team will partner with you to bring big data to life, unlocking the intelligence hidden in the data, while also supporting any planning and implementation. Our solutions work in the NEC Cloud, on-premise and hybrid deployment models and leverage multi-vendor strategies.

How Do You Cloud?

Cloud services provide an excellent way to empower a mobility strategy, as well as ensure rapid provisioning of seasonal and temporary employees. In fact, enterprise mobility removes many barriers for employees who are either on the road or in remote locations, ensuring they can access enterprise applications quickly and easily. However, the use of cloud in your organization is something that requires strategic thought.

There are many concerns about cloud applications, including security and reliability. What applications should you actually use in the cloud? Are there some that should remain on-premises? Can you be certain that the cloud services will meet your needs?

This is an area where the NEC team can bring broad experience to your table. Our Cloud Services team provides solutions that transform your business by bringing together people, applications and smart devices to deliver communications and collaboration solutions through the cloud. For example, Desktop-as-a-Service or DaaS is a cloud service that deploys virtual desktops that users can access from any device, anywhere. Talk about flexibility for your business! One of the benefits of DaaS is that it enables your business to step into cloud usage in a strategic manner, while giving you peace of mind regarding security and access, all without touching critical enterprise applications, such as financial software.

The NEC team offers a solid strategy that meets your specific environment, from on-premises to hybrid to public cloud services. The important thing is that your business requirements are considered and met without interruption through a seamless integration. Our team is well-versed in creating this environment so you can utilize the cloud to maximize your business while minimizing any risk.

Finding the Best Managed Services Partner

Knowing which services are core to your business or simply routine, but still important, is a key decision to be made…so that leaves the question: Do you have all the expertise in-house to properly evaluate the many aspects of IT and then make the best decision for your organization? With the ever-changing landscape, particularly in the areas of security, cloud and virtualization, it is extraordinarily difficult to have all the talent in-house you need to make the best decisions and implement the right solutions while still contributing to the company bottom line.

Our Managed Services teams understand all these complexities, and have built a strong talent pool to execute our offerings. We believe that rather than trying to do it all on your own, you should have the option to align with experts who act as an extension of your existing IT team.

Our managed services offering, NECommand, enables business through important IT solutions in three key offerings: nBuild™, nMaintain™, and nManage™. These services provide you with the level of expertise for your particular environment, whether it’s implementing a new system, providing administrative functions and maintenance to free up your internal IT talent, or managing those complex systems such as security, we have created services to align with your business needs.

Budgeting and Beyond

The typical budgeting process often means “take what you have done, add or subtract by percentages and submit the number.” However, with the consistent fluctuations in IT, you should probably ask yourself is it better to rely on historical experiences alone to make important business decisions? Instead, consider working with NEC to help you manage your IT future and make solid business decisions that can enhance your bottom line.

You can learn more about our Analytics and Big Data, Cloud and Managed Services by visiting our web site, where you will find white papers, videos and other information to help you make the right adjustments to your 2015 IT budget.

Tags: IT budgeting

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