by Cheefoo • Updated on 25 Oct, 2023

minutes read

leasing servers vs buying

For office managers, deciding whether to lease or buy expensive IT equipment, especially servers, is a big deal.

It affects your budget and how your tech stuff works for the long run.

Let's talk about the important things to consider when it comes to leasing servers vs buying.

Understanding Leasing and Buying: What's the Difference?

When it comes to acquiring assets for your business, two primary options stand out: leasing and buying. Let's dive into the key distinctions between these approaches.


Leasing is a financial arrangement where a company obtains the use of an asset from another party for a specific period, typically in exchange for regular payments. This is primarily an OpEx, involving ongoing operational expenses.


Buying is the process of acquiring an asset by paying for it in full, resulting in complete ownership and control. This typically involves a significant upfront CapEx investment, making it a capital expenditure.

Comparison: Leasing vs. Buying Servers

When it comes to making the right choice for your business's IT infrastructure, comparing leasing and buying servers is essential.

Let's break down the key factors in a straightforward table:




Initial Setup Cost

Low or zero upfront cost

High upfront cost

Monthly Expenses

Ongoing operational expenses

Minimal ongoing costs

Maintenance and Repairs


Not included

Long-Term Cost Evaluation

Steady monthly costs that are predictable

Cost-effective over the long term


Only your data



Report as expense

Report as asset, and depreciate over time.

When to Buy or Lease Servers

Choosing between buying and leasing servers depends on your business's unique circumstances and objectives. Here are some practical guidelines to help you decide:

Choose to lease server if:

  • You have budget constraints and need to keep initial costs low.
  • You expect changes in server requirements within a few years and require flexibility.
  • Fixed monthly payments that include maintenance and support suit your financial planning.
  • Staying current with the latest technology is crucial, and you want to avoid owning outdated servers.
  • You don't mind not having full control of the hardware.

Choose to buy server if:

  • You plan to use the servers for a long time and want to own them.
  • You can afford a larger upfront investment without financial strain.
  • Your business requires flexibility to customize and upgrade servers.
  • You can benefit from tax advantages associated with owning servers.
  • Your team can manage server maintenance and repairs.

Wrapping Up

The best IT investment approach is often a mix of both leasing and buying.

This hybrid model gives you the freedom to choose based on your specific needs and priorities, making your IT strategy flexible and cost-effective.

It's like having the best of both worlds, ensuring that your IT setup works seamlessly to support your business goals.


Cheefoo is all about technology and good content. He loves picking up marketing skills, and teaching himself new things like SEO. He's always excited to learn more and share his knowledge with others.

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