The IT needs of a business are becoming increasingly complex, creating the need for innovative solutions that maximise return on investment.  

Operational expenditure (Opex) like consumables, licensing and utilities are easily budgeted for from year to year but forecasting capital expenditure (Capex) is really hard to do?

Traditionally Capex items are those that are considered an investment and will deliver value to the business over a number of years.

• Is there expertise available to distinguish between the latest expensive toy and the best reliable innovative solution?

Capital expenditure (Capex) budgeting for IT equipment and software investment is difficult because it has to compete for the same scarce cash resources with other organisational needs. To get the most out of your capital spend for all projects it is critical to align the capital spend for IT to strategic initiatives.

• Is there a need for assistance to align the capital spend for IT to your capital spend on other projects and critical strategic initiatives?
• Is leasing an option to smooth out the cash flow?

COGITA has the tools and expertise to enable a business to make sound strategic choices for IT spend in the short and long term. 

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Real Case
Each year, each department in a large organisation of 500 people would put forward as part of their budgeting process a "capital" budget for PC's.  And each year, the capital fund would be exhausted and the department heads would have to reapply because the ROI or NPV was higher on other options.  After some time there were a number of high profile "outages" (PC's which cease to work) and questions were asked.  What was found was that the infrastructure replacement process led to obsolescence and replacements were usually unbudgeted. The usual driver for replacement was continual breakdown leading to much frustration and time wasting and loss of productivity. The change in policy resulted in leasing PC's & Servers based on a predetermined economic life.