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Pay-for-use IT Hardware

Pay-for-use IT Hardware

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  • Qrent The Alternative, Smart Way DJ Kumbula Group CEO
  • Current Challenges Facing the Industry • • • • • • • • • • • • • Lack of capital to expand or start up; Dwindling Fees and margins from customers; Shorter contract terms; Cancellation of contracts Idle capacity of equipment; High per seat costs; Mismatch between revenue/fees and costs/investment; Highly competitive environment; High staff turnover; Technology is getting expensive; Lack of custom made solutions for the specifics of the call center industry. Lack of capital to expand or start up; Dwindling Fees and margins;
  • How you currently source IT hardware You buy Cash and Traditionally, why ? • • • • • • •  . Lack of custom made solutions from suppliers; That’s what you have always done; Subjective personal preference; Cash/Funding is readily available; Donate; Global supplier agreements; Sweating Strategy.
  • Disadvantages of Buying Cash • • • • • • • • • Tying up Capital; Using cash slows down company growth dramatically; Mismatch between revenue and cash spent; Contracts cancelled or suspended, you sit with idle capacity; Can’t bid on short term campaigns/contracts because of cash outlay; Out of warranty issues, hidden capital costs; End of term disposal; Trying to be an IT company, causing downtime and lost income; Being out priced by competitors because your costs are too high.
  • Paradigm Shift 1 Cash Purchase vs Pay-For-Use
  • The Right Way : Paradigm Shift 1 Current Challenge Our Solution Tying up of Capital Preserve Capital by paying monthly Mismatch between revenue and spend By paying small amounts monthly you match your income to expenses Funding substantial business, slows down cash flow Have extra cash in the bank to expand, due to monthly rental Cancelled contracts Scale down, hand back equipment Short term contracts, expensive Access equipment from 1 month to 36 months Out of warranty issues and costs Take away hidden costs of spares and labour Out priced by competitors due Small monthly premiums to high setup costs make you more competitive
  • The Right Way : Paradigm Shift 1 continued Current Challenge Our Solution Trying to be an IT company Maintenance and upkeep headache is ours Disposal of IT assets We remove non-core equipment and take away the headache of eWaste/Carbon footprint disposal Balance Sheet heavy, eroding shareholders wealth Off balance sheet financing Ownership Challenges, focusing on core business Pay-per-Use Cost per seat
  • Now what? Decision 1 Choose Pay-For-Use!!!
  • Paradigm Shift 2 Classify your users into “Power and Non-Power Users” • • • • • What percentage of staff are average/medium and high end users? Do all your users need the state of the art equipment? What do the users actually use the machines for on a daily basis? Do they all need to use the full application suites? Forgetting your buying and replacement policy, which users need a regular refresh every 3 years? • What informs our buying decision?
  • Power vs General Users  Would you drive a Rolls Royce around on the golf course? You could, but it’s a little excessive  Similarly why provide a high end device to a general user, when fit for purpose IT hardware, can save substantial costs without compromising on speed, reliability and efficiency  We say: Match capacity with functionality
  • HEALTH: Discovery Health Challenge Breaking into the market and convincing decision makers at a HIGH END COMPANY that Qrent was a viable and reliable option Action Qrent successfully completed a deal with Discovery Health – and subsequently supplied equipment in excess of 3,000 machines Results Discovery SA has saved R10mil in the last 3 years adopting the Alternative Smart Way. The Discovery Health partnership in SA has resulted in Qrent’s first UK client – PruHealth.
  • Paradigm Shift 2 Impact “Scenario : Fit for Purpose Approach” • • Traditional Method 1000 users @ R7,500 per PC = R7,5million • • Alternative Method Profile your users, including applications  20% Power Users @ R7,500 = R1,5million  80% Non-power Users @ R4,000= R3,2million Total Cost = R4,7million •  SAVING = R2,8million (35% +) • 200 Users use Innovent at prime less %  Vendor warranties and support • 800 Users use Qrent at reduced monthly rates  Warranties, insurance, tier one brands, SLA
  • Summary Benefits • • • • • • • • • • • • • • • • InnoVent – Traditional Cost effective funding Stronger Cash Flow(Don’t tie up your cash) Maintain relationships with existing suppliers Negotiate your pricing up front Off balance sheet Qrent – Alternative Priced at 50% of traditional Conserve Cash No credit line impact Short terms/ flexibility  1 day to 36 months Scale up and down On demand availability Hassle free : includes warranties, insurance, spare units, SLA’s Tier one brands, standardise e Onvironment
  • Conclusion Many organisations are considering innovative ways of increasing margins. IT departments are starting to understand the needs of their users. By classifying these into power and general users they can successfully take advantage of the Qrent Alternative, Smart Way. Adopting this model has provided the benefits of first mover advantage – saving substantial costs without compromising performance. It is clear that every organisation ought to be thinking this way.
  • Contact Details Johannesburg : +27 11 791-0645 svandermerwe@qrent.co.za sgovender@qrent.co.za Cape Town : +27 21 020-0104 jmeyer@innovent.co.za Durban : +27 31 830-5220 dmclarty@innovent.co.za Other Offices Zimbabwe Zambia Tanzania United Kingdom
  • Next Steps Talk to us – we are outside!