Update or Replace – How to Afford the Investment in New Technology

Managed Technology: 8 Common Questions Answered
By Tyler Ebnet

Does the current environment have you thinking about the improved safety and functionality provided by new technology? What about the cost and feasibility? Taking on the full price of your organization’s next technology investment – whether it’s a surveillance system, touchless technology, nurse call system, work-from-home collaboration technology, or a distance learning solution – puts the entire weight of the purchase on the business all at once. Once that technology system is in place, it also begins to depreciate.

Monthly payments can lighten the weight of purchases like this, making new technology more feasible (and making it easy to determine whether your organization can afford the investment). It’s kind of like shopping for a new home or car. The total purchase price is more intimidating than the monthly payment! Managed technology also allows you to bundle technology projects, warranties, and service contracts into one financing agreement, with systems being monitored and maintained 24/7/365.

What’s most important to your organization? Owning the technology you use or making sure you have constant uptime and easy access to what you need?

As you weigh this decision, questions may come up along the way. We’ve gathered answers to some of the most common here. Take a look!

Q: How can I convince our CFO that monthly tech payments are a wise investment?

A: Understanding your CFO’s goals will help you compile data to show how your organization will save money through monthly technology payments vs. big-ticket capital purchases. Leave out technical jargon; instead, calculate and compare the costs of investing upfront in the technology your organization needs vs. accessing that same technology via a monthly usage payment. Explain that your organization will also have a greater internal rate of return; the benefits of the technology and positive cash flow back to your organization will be realized before outlaying all the cash.

With a managed technology option like CEC’s Managed Systems Program, there are no upfront capital investments, expensive hardware purchases, or software costs. Based on what you need, you’ll make one monthly payment. There are no unexpected expenses, which makes budgeting easier. You don’t have to worry about tracking assets or owning technology that depreciates over time.

You could also demonstrate to your CFO how this approach could free up time for existing staff members who currently manage your technology systems. By placing that burden elsewhere, you gain additional workforce without actually hiring team members.

Explaining “non-financial” values and benefits may help as well: investing in managed technology could reduce risk by improving security and ensuring adherence to compliance requirements.

Utilizing a program like CEC’s allows companies to focus on their core business, leaving technology maintenance and concerns to specialists to handle for them.

Q: What happens to the equipment at the end of the term?

A: Once your three- or five-year term is up, you have the opportunity for a technology refresh. You don’t have to worry about having available funds or staff resources to keep your technology up to date – it will happen automatically! If the current technology still suits your needs, simply renew to keep using it. Otherwise, the systems can be removed and you will no longer pay monthly for their usage. It’s completely flexible.

Q: What happens if our technology needs change partway through our term?

A: You can add to or subtract from your technology as needed. If your business is growing quickly and you need to expand your technology systems to accommodate more employees, then you can do so. If you downsize and don’t need some of the technology you currently have, that change can be made. Your monthly payments will be adjusted accordingly.

Q: Whose balance sheet does the equipment sit on?

A: The equipment sits on our balance sheet, not yours. Because you don’t own it, the technology you pay monthly to use doesn’t have to be reported as an asset.

Q: Who covers the additional costs if a piece of technology goes bad?

A: When you invest in managed technology, we absorb any additional costs and risk. No matter what happens, there is never any additional cost to your organization; your monthly payment guarantees that your system will work. If something goes wrong with your technology, we’ll do whatever it takes to fix or replace it.

Q: How do warranties work?

A: The warranties that accompany the technology system(s) you choose as part of your term still apply. We manage them for you, working directly with the manufacturer when necessary.

Q: What happens when my equipment or systems go down?

A: According to ITIC, unplanned downtime costs most organizations approximately $100,000 per hour. Downtime is costly! Managed technology means that your systems are being monitored, managed, and maintained 24/7/365. Potential issues are often caught early – before they create downtime or delays. If downtime does occur, we respond immediately to get systems back up and running as quickly as possible.

Q: What services are provided as part of managed technology?

A: Anything and everything having to do with your technology is included: things like monitoring, management, maintenance, programming updates, troubleshooting, problem-solving, and software and security updates – even end-user training (and retraining) whenever you need it. Whatever happens, it’s included as part of our agreement.

Q: How is this better than just calling CEC when something breaks or we need help?

A: Although you can always call us when something isn’t working, our Managed Systems Program takes a proactive vs. reactive approach to your technology. We’re watching for potential issues or concerns so they can be fixed before they break (or before downtime occurs or before a data breach happens). When you wait until something breaks to seek help, then you’re already losing efficiency and productivity.

CEC’s Managed Systems Program

Our Managed Systems Program (MSP) packages the latest technology into an affordable, budgetable monthly usage payment. You never worry about downtime; we maintain the system for you.

Do you still have questions about MSP? Send us a note. We’re happy to explain more about CEC’s Managed Systems Program and help you decide if it’s the right option for your technology initiatives.

Tyler Ebnet has served as CEC’s VP of sales since 2019. He excels at creating streamlined processes that improve customer experiences and help our talented sales experts find answers to challenging productivity, safety, and communications questions.

Back to Top