New research has shown that average IT replacement cycles have
remained steady, despite the recession.
Siemens Financial Services revealed that the average refresh
periods for hardware, software and office equipment have not
changed significantly in the last three years. In the UK and
Germany the average replacement cycle was 34 months, whilst it was
38 months in France.
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The study, which questioned 1,500 companies in the UK, France
and Germany, also revealed that 76.8 percent of UK firms rely on
cash to fund equipment acquisition, compared to 75.6 percent of
French businesses and 67.5 percent of German firms.
But lessors can be comforted by the fact that 24 percent of
European companies are looking at alternative methods, such as
leasing and asset finance, to fund new equipment.
“As standard lines of bank credit have become more costly and
less available in the past year, a significant proportion of
companies are turning to asset finance techniques as an alternative
means of financing such essential acquisitions,” said Derek Ryan,
sales director at Siemens Financial Services.
“They are fighting back against recessionary pressures to make
those investments. The need to deliver added value and service to
customers has become even more important as markets contract,” he
added.
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