Companies have long paid tech companies to rent out their equipment and services.
The technology industry is in an unusual position, however, because tech companies generally don’t make a profit on hardware and software they rent out.
The rental business model works like this: If a company buys equipment or services and they don’t charge customers a price for them, they can make money by selling the equipment to their own customers.
The tech companies that rent out equipment also sell it to customers, so they are not required to charge any rent to them.
If a tech company sells hardware or software that they don.t make money from, it can be rented out to other companies, like a fitness company or a video game company, which can then make money selling the hardware to other customers.
Tech companies are also allowed to rent their technology out to their employees, but that’s different than renting it to corporate customers.