What are reasons for using external and internal sources of hardware?
Computer hardware can be purchased, rented, or leased from the manufacturer (vendor) or from a leasing company. Under these arrangements, hardware is acquired, installed in the organization’s facilities, and operated by the organization’s personnel. As noted in Table 7.1, possession and management by the organization is less flexible (because of fixed cost and limited capacity, for example) than is use of external sources, but it does permit the organization to control and tailor the system. An organization preferring not to own or manage its own computer facilities can use one of the outsourcing options described above, such as a service bureau or an ASP, to fulfill its hardware needs.