One of the most significant changes is the move away from a hardware-concentric model to one of financing implementations. We anticipate a dramatic change within the high tech leasing industry in the next few years that will be driven by e-commerce and the increased introduction of new products among equipment vendors. To compete, smaller lessors will need to find a market niche, offer more value to customers, use new technology to their advantage and take risks with service providers and software and services financing. The Internet is an essential businesses tool that enhances customer relationships and reduces the costs of business practices. New economy lessors must be prepared to finance nontraditional products and offer innovative programs to serve new economy clients.
Partnerships are key to increasing revenues.
To represent all the requirements of the Internet-based economy, lessors will need to build numerous vendor relationships and diversify their businesses. The lines between technology leasing companies and capital equipment leasing will blur as customers' requirements evolve to a total leasing and service offering rather than solely equipment leasing. Lessors must anticipate and be prepared to jump into new technology markets with growth potential. Lessors should look to nontraditional partners and sources of funding, and expand their scope of lenders by working with multiple funding sources. Global reach will become the key to success in this market.