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Leasing a Small Business Network
If you know you need a computer network to take your business to the next level,
then consider leasing. It may make more sense to lease than to buy a computer
network - especially if you need the cash for inventory or other vital operations.
Here's a rundown on some reasons to consider leasing:
- Flexibility. Leasing is a good way to test the waters without committing
yourself to buying a network, especially true for your first network.
Leasing offers you the flexibility to find, by trial, the right networking
solution for your business,without being saddled with a big mistake. Computers,
laptops and printers, servers, Internet and Intranet access are all possible
in an initial lease or through upgrading.
- Timing. You may know that you need networking equipment but only for a
short period of time. Leasing gives you access to state-of-the-art network
equipment - anything from printers to high-speed Internet access lines -
without the expense of purchasing the equipment.
(Renting is also an option but it's expensive. Any time period longer than
three months is usually not cost-effective.)
- Tax benefits. You can write off a portion of the lease payments, often
faster than when you buy equipment and depreciate it over seven years. When
you get a new lease - and upgrade to a newer, faster, more capable system -
the tax benefits are available once again.
A warning: Check with your accountant or tax advisor to make sure that your
company qualifies for the tax break.
- Service. Technical support and maintenance may be included in the price
of the lease, perhaps as an extended warranty. Be sure you understand the
support and maintenance details before leasing.
In addition to these most general reasons for leasing networks, there are
several specific styles of leasing from which to choose, from entire networks
to key elements. A good computer consultant or equipment leaser will help you
to assess your networking needs.
Here are two state-of-the-art networking possibilities that take advantage of
the Internet: virtual private networks and Internet Access Leased Lines:
Virtual Private
Networks (VPNs)
Some of the most innovative service packages and pricing schemes for leasing
networks are provided by Internet service providers (ISPs). Those schemes
include network integration, application development, and flexible bandwidth
on demand for accessing the Internet or an Intranet.
ISPs effectively lease you a VPN because the system uses Internet protocols
for communicating. But it allows for a full range of software and hardware,
as in any other system. Leasing in this way gives businesses many advantages:
- You can add extra capacity for one-time or short-term needs, from expanded
users or bandwidth to video-conferencing. That provides flexibility and only a
short-term expense.
- If you want to take advantage of electronic commerce and wish to establish
a Web storefront integrated with your network, leasing a VPN allows you to
improve your business network and Internet access easily, without the capital
expense.
- You have dependable, secure, outsourcing of your Internet access. Your
ISP gives your employees the phone numbers to call, ensures security with
firewalls and access codes, and moves your data safely from your network
to its router.
- Bandwidth, more remote users, and other services can be added easily as
you grow. If you lease, the change is a modest increase in your monthly
payment - which is often a lot better than buying new hardware or upgrading
existing units.
Caution: Using the Internet to establish a network requires a lot of
technical support. Be sure you understand who provides the support,
how available it is, and how much it costs. For small businesses,
which often do not have much in-house technical expertise, however,
leasing the bandwidth and network services can still make a lot of
sense.
Internet Access Leased Lines
Available from phone companies, leased lines will cost you several
thousand dollars a month, but will provide you with continuous,
high-speed access - the highest quality and the fastest connection
with no need to dial-in. They effectively extend your local area
network (LAN) into the Internet. As expensive as they are, they make
sense in certain scenarios:
- If your business runs Web or mail servers that outsiders then access;
- If your network has at least dozens of active Internet users;or
- If you repeatedly load and download files with many megabytes of data.
In each of these cases, leased lines may be the most cost-effective way
to access the Internet. Your connection is active full-time and gives
you the same bandwidth in both directions.
Typically your business will need little more than a line between your
headquarters and a local Internet service provider, and Internet
applications on your desktop computers, to complete the necessary infrastructure.
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