How to Battle Budget Obstacles and Legacy Systems with Aggressive Digital Initiatives

Deidra Peterson Specialist, Vertical Solutions Marketing Published 21 Jun 2019

“Digital initiatives are the top priority for 2019. Only 4% of organizations have no digital initiative at all, which signals a shift from digital as an option to digital as a mainstream platform.” – Gartner, CIO Agenda 2019: Digital Maturity Reaches a Tipping Point

Digital transformation continues to advance, and it’s calling for greater investment in innovative technologies, including the network—the foundation for your IT infrastructure. The discussion around IT today being a direct contributor to revenue is pervasive for a reason; it’s true that technology no longer merely supports the enterprise; technology is the enterprise.

  • 89% of organizations have adopted or have plans to adopt a digital-first strategy.

…yet…

  • 39% of businesses report that their biggest digital business challenge is sufficient budget.
  • 34% say “that the need to replace legacy systems is their biggest obstacle,” (IDG).

Typically, when people talk about digital transformation, they’re talking about the convergence of people, processes, and technology to completely change the experience of doing business. This undertaking could involve any aspect of enterprise technology infrastructure. But what makes infrastructure operations possible? What allows devices to talk to one another? What enables communications between a business and its customers? What powers the ability to collect data and run analytics? The network.

If businesses in pursuit of digital transformation augmented the network to match their transformational outcomes, then technology infrastructure would truly be dramatically changed via more automatic processes and an elevated business focus. 

Technology Acquisition is Critical to Upgrading Outdated Systems, But How are Businesses Funding It?

Knowing that many organizations grapple with budget limitations and outdated systems in their digital transformation journeys, it becomes important to examine possibilities for making network upgrades more economically feasible. The market is making it clear that as a result of aggressive digital initiatives throughout every conceivable industry, technology acquisition is a priority.

  • U.S. businesses, government agencies, and nonprofits will spend over $1.8 trillion in capital goods or fixed business investment, including software this year. A majority of those assets will be financed (ELFA).
  • Equipment leasing and financing provide the source of funding for approximately 60% of U.S. businesses to acquire the productive assets they need to operate and grow.
  • This year, growth in equipment and software investment is set to grow by 4.1%.

…Network equipment acquisition is no exception…

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  • It’s predicted that spending on automated intelligent edge networking will yield a $4.5 billion SD-WAN infrastructure market, as well as the creation of software-defined branch and cloud-managed NaaS through 2021 (IDC).

The reality is, even large enterprises usually don’t have upfront capital for network upgrades. Yet, in making transformation efforts, network agility is a need-to-have, regardless of economic conditions. It’s true that all major OEMs have capital arms of the organization, but what makes is Extreme different is how we offer our capital solutions.

Extreme Capital Solutions Options

“Businesses deserve to be able to move dynamically and alter their network in more of a just-in-time kind of environment. They deserve the financial dexterity that they can’t get from a traditional acquisition model. They shouldn’t be tied down.” – Lisa Paquette-Nelson, Sr. Director of Extreme Capital, Extreme Networks

Like we mentioned, there are no manufacturers who don’t have a capital core team. It’s not tech-driven, it’s not a line to a specific vertical. A capital core team is a captive—the financial arm of an organization that functions like a mini company whereby the objective is to provide financial acquisition models to customers, and capital alone isn’t unique. What is unique that Extreme Networks offers financing options characteristically differently than traditional manufacturers to bring transformational, flexible acquisition options to your network. Financing programs are available across all Extreme Networks products and services and can be tailored to meet the unique needs of any business.

Here’s what we offer:

Extreme Networks Subscription gives you the ability to tightly align your network infrastructure capacity with your changing business needs, with:

  • Consumption-based costs
  • Unlimited upgradeability
  • On-demand scalability
  • Evolving useful life
  • Opex agility

 

Leasing

  • Conserves capital for a business need
  • Spreads acquisition costs over time
  • Protects from obsolescence
  • Provides off-balance sheet potential
  • Tailors payments to the available budget
  • Provides easy upgrade opportunities
  • Finance 100% of the total solution
  • Provides an additional line of credit

Financing

  • Equipment costs spread over the years
  • Preserve capital while enabling business growth
  • Strategic, competitive advantages

Digital transformation is necessary, and there’s no way around that. But it’s also complicated, which is why Extreme Capital Solutions is simple. We will not let budget or legacy systems stand in the way of customer transformation success. Looking for financing solutions that fit your needs, or have questions about what will work best for your transformation goals?

Visit https://www.extremenetworks.com/how-to-buy/ —or— reach out to an Extreme Capital Solutions expert. We’ll walk you through your options.

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