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Technology Transition Lease

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Page 1: Technology Transition Lease

Technology Transition Lease

Designed for companies transitioning to the cloud: End the delay of the inevitable ... plan your cloud migration without taking a substantial book loss on your installed asset infrastructure

Thomas D Vallone VP Wintrust [email protected] [email protected] www.linkedin.com/in/thomasdvallone www.twitter.com/thomasdvallone 847-274-8154

Designed for companies transitioning to the cloud: End the delay of the inevitable ... plan your cloud migration without taking a substantial book loss on your installed asset infrastructure

Page 2: Technology Transition Lease

The Business Conundrum

Typical Company Profile:

● High cost of owned technology assets on their books

● Cannot break the ownership cycle as they continue to ‘invest’ in technology to maintain current environment

● Cloud adoption continuously delayed even though management understands the financial and technical benefit of the cloud

Page 3: Technology Transition Lease

The Solution:

TechnologyTransitionLease

Transition Attributes:

● Funding source purchases the installed assets at book value and leases the equipment back to the company

● Book value issue is removed● Assets are leased for a time period

that coincides with strategy to transition to the cloud

● No further ‘investment’ in technology ownership

● Cloud solutions become layered-in over time as the leases expire

● Some installed equipment can be employed in new cloud infrastructure

Page 4: Technology Transition Lease

Company Benefits:CASH OFFSET: Purchase and leaseback of installed assets generates cash infusion - this ‘cash’ can be deployed to other strategic, unfunded, initiatives

CLOUD REALIZATION: Transition lease establishes stake-in-the-ground for cloud adoption

FLEXIBILITY: User can perform necessary upgrades to installed asset infrastructure via a lease amendment during transition period

ELASTICITY: User can extend or terminate the lease depending on timing of cloud adoption