Acquire New Technology on Your Terms

Posted by Bryan Williams on January 15, 2016January 19, 2016 Posted in Education, Finance, Government, Healthcare, Hospitality Tagged acquiring new technology, financial services, IT budgeting, lease, Leasing IT purchases, Making IT Budget decisions, NEC Financial services, opex, technology

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.”

Attention #B2B CIO or CFO, you have options to Acquire New Technology with Flexibility. Click To Tweet

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!

Trendy Travel Equals High-Tech Hotels

Posted by Bryan Williams on June 15, 2015 Posted in Hospitality Tagged Hilton, HITEC, Hospitality, hotels, NEC, NECAM, opex, Starwood, Travel, unified communications

We live in an on-demand world, where customers want access to information and conveniences immediately. While there are plenty of examples of technology that can provide instant gratification, few are more prevalent than those we see in the hospitality industry. After all, hospitality must accommodate business and personal travelers alike, ensuring outstanding experiences and meeting the varying needs of the executive who demands high-speed internet with the vacationer who wants convenience. Fortunately, we are in a time when all this and more are possible.

Meet the ‘Botlr’

Starwood recently rolled out two robotic “Botlrs” in its Cupertino Aloft Hotel. The three-foot-tall robots have giant empty compartments for delivering items and include seven-inch touch screens for guest interactions. These robotic butlers can do everything from delivering towels and food to guests to assisting staff with back office duties.

The idea behind the Botlrs is to perform the more routine tasks, freeing up staff members to handle more complex items. The robots have their own elevators and through the use of Wi-Fi connections can navigate the hotel without getting in the way.

The response has been so positive that Starwood is planning a larger rollout later in 2015. Soon you’ll get your extra towels delivered by a robotic butler who always says thank you!

Forgot Your Key Card? Use Your Phone!

Hilton and Starwood have developed an app that lets guests use their cell phones to unlock their rooms. This service provides great convenience and alleviates the need to carry a key card, or more likely, forget the keycard and have to get a new one from the front desk. Hilton’s app will also allow guests to access various areas of their properties, such as the fitness center, executive floors, elevators and parking facilities.

The apps will also work on other devices, such as the Apple Watch, making it even easier for guests to “remember” their keys.

The Next Generation of Communication

Recently NEC’s Global Hospitality Team was featured in the Frost & Sullivan Digital Transformation blog, where we discussed our global hospitality footprint. Some of the highlights include:

Hotels are moving toward IP voice systems, particularly in new-build facilities, in order to maximize technology in areas such as voice, entertainment, security and environmental controls.
Unified Communications significantly enhances workflow productivity while improving the guest experience.
By adapting delivery models, NEC has created a solution for hotels that meets the demand for OPEX pricing, while accommodating security needs and legacy systems currently in these hotels.

You can learn more about trends in hospitality technology and NEC’s solutions by visiting us at HITEC 2015 in booth #1437, or by visiting our Hospitality Solutions page on our web site.

CapEx vs. OpEx: How Can IT and Finance Work Together?

Posted by Bryan Williams on May 30, 2013June 2, 2015 Posted in Finance, Straight Talk Tagged capex, capital expsense, finance, investments, NEC, NECAM, opex, protect investments, purchase, technology solutions

Chief Financial Officers (CFOs) work with two distinct budget planning methods in mind: capital expenditures (CapEx) and operating expenses (OpEx). A study by Gartner and the Financial Executives Research Foundation reports that “The CFO is increasingly becoming the top technology investment decision-maker in many organizations.” In nearly 500 enterprises surveyed, 42 percent of all CIOs report to the CFO, and in three out of four companies, the CFO has a major hand in all IT spending.

While the CFO and the financial organization ensure the business health of a corporation, the CIO and IT organization understand the technological needs and challenges and, in turn, devise solutions to address those challenges. More often than not, those solutions include resources in the form of people, time or money. Working in conjunction with one another, the CFO and CIO must oftentimes find ways to do more with less. They’re being asked to support more devises and more applications on a network that can support more users. When we as IT organizations are recommending a capital outlay, we will likely receive pushback because of the divot in a balance sheet.

While it is common to stretch budget by shifting capital expenses to operating expenses, it is beneficial to first understand the differences between the two. Capital expenses are long-term investments, while OpEx financing models allow many organizations to leverage all the benefits of predictable monthly payments traditionally found in hosted solutions in an on-premises solution. For many, this can be the best of both worlds: a service-oriented model found with a hosted solution with none of the concerns some organizations may have with security and availability of a hosted service. What’s more, a $25,000 on-premises collaboration and audio conferencing solution may be a difficult solution to get approved, however, an on-premises solution with all of the capabilities of hosted for less than $400.00 per month can be a powerful internal conversation. Are you more comfortable paying out a lump sum or breaking payments down into a monthly scale? Regardless of where your preference lies, there is a financing option for you.

However, if we can shift thinking from all solutions being a capital expenditure to the integration of operating expenditures, we can realize efficiencies not only within the organization, but also perhaps a better response from finance. Operating expenses for solutions not only spread out costs on a monthly basis, but they also realize value each month as opposed to the depreciation of a capital expense. In addition to justifying costs, you must calculate the opportunity cost – the cost of doing nothing – to your organization. Are you losing things that provide value – employees, satisfaction or even customers?

Have you switched to an opex model? What are other ways your IT organization works in harmony with finance? Watch the video “NEC Capex vs. Opex”, as Mark Hebner, senior business development manager, discusses costs vs. the cost of doing nothing and how switching from CapEx to OpEx actually helps you realize value month-to-month.