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Cloud Computing – The Case for Leasing Data Center Technology

Cloud Computing - The Case for Leasing

There are two main ways that cloud-based technology businesses can acquire technology assets such as servers, switches, routers, storage devices, and data center racks. Cloud companies can purchase them or lease them. Purchasing assets outright (or CAPEX) is fairly simple. Companies buy the assets out of the retained earnings of the business. On the leasing side, cloud-based technology companies can choose from two different kinds of leases: capital or operating.

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Cloud Computing – Lease versus Buy for Data Center Equipment?

Cloud Computing - Lease versus Buy Data Center Tech

Today’s large cloud-based technology corporations that reside in the digital realm — think Facebook, eBay and Google — use billions of dollars’ worth of equipment and assets in building the infrastructure and data centers that are necessary to serve their customers. Given this, it’s surprising how little strategic planning sometimes goes into how these corporations acquire their equipment and assets.

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