All the tools you need to execute your IT Refresh

Transcription

1 All the tools you need to execute your IT Refresh

2 Company Quick Facts 1987 Year founded 264 Employees 100 Years of senior management leasing experience 250 New Clients have switched to the IFS IT Refresh solution since 2010 Audited Financial Statements by Ernst & Young ISO 9001:2008 Audited & Certified $600 million Managed Lease Portfolio 90% Client repeat business index 26 Years Of continuous profitability 50% Year over year new client growth $150 million International Locations 17 Countries In which we have leased equipment Directly funded to vendors from our bank line annually q p

3 IT Equipment for Virtually Any Industry Distributed IT Assets Laptop Computers Desktop Computers Tablet Computers Monitors RFID / Handhelds Point of sale (POS) Data Center Assets Networking Storage Disk & Tape LAN / WAN Voice Over IP (VOIP) Servers Rack Mount Blade Intel based Microsoft based UNIX based Miscellaneous Copiers Fax Machines Printers & Plotters Video Conferencing Audio / Visual Furniture Software Enterprise Resource Planning (ERP) Customer Relationship Mgmt. (CRM) Accounting Engineering / Design Time & Billing Softcosts Implementation Consulting Maintenance Contracts Warranty Upfront Services Installation Imaging Asset ttagging Kitting / Repackaging Deployment End of Lease Services De installation Packaging Shippingi Data Sanitization Data Destruction

4 Benefits of an IT Refresh Strategy Creates a predictable IT equipment budget Pathway to next generation technology Avoids out of warranty maintenance costs Outsources residual risk to the lessor Transfers disposal liability to the lessor Conserves cash, credit lines & budget dollars

5 Real Time Costs of Owning Older Equipment IT Staff becomes reactive vs. proactive Increase in out of warranty costs (30 60% of OEC) Increase in equipment down time Increase in IT Staff servicing requirements Increase in power & cooling costs (8x New) Increase in security incidents

6 Quote It seems like all our tech guys do is service & repair old equipment Texas ISD

7 Modeling the Math

8 IT Refresh & Purchase Talking Points Transaction Description Lease Schedules & Refresh Cycles Equipment delivery & acceptances Sample transaction size $1,000,000 Lease facility installation period ( ) Equipment schedules created after Assumes staggered ddelivery and acceptances each 30 day installation period during each 30 day installation period IT Refresh is executed in 30 day intervals as lease schedules expire Tier 1 desktops, laptops & related equipment Transaction Metrics IT Refresh Purchase Notes / Comments Hardware cost $1,000,000 $1,000,000 $1,000,000 lease line, no non utilization fees Software & intangibles cost (if any) TBD TBD Installation, shipping, etc. Total equipment cost $1,000,000 $1,000,000 Amount paid to vendors as equipment is accepted Initial base lease term 36 Months Historical Use Are you the proud owners of obsolete equipment? Lease billing cycles M, Q or A N/A Lessee invoiced monthly in advance 36 month hardware lease rate N/A Estimated hardware lease rate 36 month software lease rate N/A Estimated software & softcost lease rate 36 month hardware rental payment py $27,310 N/A Hardware monthly py payment 36 month software rental payment $0.00 N/A Software & softcost monthly payment Total monthly lease payment $27,310 $1,000,000 Annual spend in year 1 is $327,720 vs 1,000,000

9 IT Refresh & Purchase Talking Points Present Value Financial Metrics IT Refresh Purchase Notes / Comments Present value of 36 monthly lease payments $895,883 $1,000,000 Based on monthly payment of $27,310 Rent for accepted & in use systems during install periods $0.00 $0.00 IFS is directly funding vendors during install periods Up front deposits, lease payments or administrative fees $0.00 $0.00 IFS does not charge any of these fees or rentals End of lease audit, inspection & disposal fees $0.00 $0.00 IFS does not charge any of these fees or rentals Guaranteed restocking fees or transition period rentals $0.00 $0.00 IFS does not charge any of these fees or rentals Total PV of up front fees, rentals & additional costs $895,883 $1,000,000 $104,116 difference (Lessor residual is $104,116) Ancillary Benefits to IT Refresh & Lease Program IT Refresh Purchase Notes / Comments Budget Flexibility Dialogue Dialogue Refresh frees up $672,280 in year 1 for other uses IT Staff becomes proactive vs. reactive Dialogue Dialogue Refresh decreases downtime & security incidents Out of warranty maintenance costs reduced (Year 4 & 5) Dialogue Dialogue Refresh avoids out of warranty costs = 30 60% of OEC Power, cooling & IT Staff servicing requirements decreased Dialogue Dialogue Refresh reduces power costs (8x) & IT service requests Equipment disposal liability transferred to the Lessor Dialogue Dialogue Zero landfill & zero export disposal policy Equipment residual risk outsourced to Lessor Dialogue Dialogue IT Refresh Lease designed to meet FASB 13 criteria

10 IT Refresh & Purchase Talking Points Critical IT Refresh Provisions to Control Total Cost IT Refresh Purchase Notes / Comments Asset Management On line System (AMOS) Yes Lessee 3, 6& 12 month alerts to expiring leases Any or all purchase, extension, month to month & return options Yes Lessee Manage equipment unit by unit; location by location Like Kind return of PCs, laptops & monitors Yes Lessee Same manufacturer, configuration & specifications Declining EOL rents reflect partial purchase & return activity Yes Lessee Partial activity reflected in subsequent IFS invoices Cap on damage charges of 1.5% of OEC for PC, laptop & monitors Yes Lessee Excludes screen damage. Industry Average is > 5% No requirement to return keyboards, mice, media & manuals Yes Lessee Limits damage charges and M2M rents What happens to Refreshed Equipment at the IFS Tech Center IT Refresh Purchase Notes / Comments Equipment is audited & inventoried for remarketing IFS Tech Center Dialogue Equipment inspection & required repairs identified ISO 9001:2008 certified data sanitization & destruction IFS Tech Center Dialogue IFS can provide written certification by serial #. ($$) Repaired and refurbished by A+ certified technicians IFS Tech Center Dialogue 5 year damage charge history < 1% of schedule OEC PCs & Laptops loaded with new Microsoft MS licenses IFS Tech Center Dialogue IFS Tech Center is a Microsoft certified MAR & MAER Remarketed to K 12 schools and small commercial companies IFS Tech Center Dialogue IFS remarkets > 150,000 systems annually Equipment not eligible for remarketing parted & recycled IFS Tech Center Dialogue Leverage ISO certified recyclers

11 Asset Management Online System Executive dashboard for portfolio data 3, 6 & 12 month alerts to expiring leases Manage location & serial number changes Import & manage non leased assets Link assets to maintenance contracts t Mobile apps available for iphone & ipad

12 Selected Education Clients

13 Dedicated Sales IFS Sales Team Team Frank Sommers SVP/ Regional Manager Darren Lang EVP of Sales & Marketing Amita Seth AMOS Support Manager Phone: Mobile: Phone: Phone:

14 Thank You!