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What is “Infotech” & its impact on digital media?

Posted on October 22, 2020
what is infotech

Daily life requires an underlying technology to keep things running smoothly. And it’s especially relevant to digital media. With the industry adapting to new mediums of advertising, one thing remains steady – the tubes and pipes it all transacts on. Every part of our lives depends on it. From using our smart phones to watching Netflix, it’s this underlying tech that keeps our world smoothly. The tech consists of many variable parts like servers, hardware, software, cloud apps, projects and data capabilities. Not to mention the Technology Solutions Professionals (TSPs) who know how to manage it all. These TSPs, who keep our lives in order, are pivotal in managing this underlying information technology, also known as infotech.

What is infotech?

Infotech is the underlying information technology that helps with the transmission of data across digital channels. Info tech allows data to be collected, stored, and analyzed. This allows digital-based activities to run smoothly in our connected world. Such activities dependent on information technology include using smart devices, social media, searching Google, watching Netflix, playing eSports, or checking your bank balance.

Without info tech, our lives and economy would stop completely. We could not use the internet, banks would not function, and data on our personal lives would be lost. Communication beyond the same room would nearly cease to exist. The internet basically wouldn’t exist. And that creates for an exhaustive list you can imagine for yourself.

Needless to say, info tech is one of the most (if not, the most) important technological aspects of our lives.

How does Infotech impact Digital Media?

Digital media, like many things, is heavily dependent on the internet. And we know the internet is totally dependent on info tech.

Without this technology, digital media companies wouldn’t be able to:

  • Buy traffic on social or search
  • Serve ads on OTT/CTV
  • Run an eSports league
  • Run an app install campaign
  • Buy and sell inventory
  • Retarget customers
  • Develop & monetize apps
  • Analyze marketing results
  • Have a cool website

Payment Delays in Infotech

Similar to digital media, payment delays exist in the cloud and IT world. Infotech services provided by TSPs are usually paid on net terms – net 30, 60 or 90 days. So if a TSP does an infotech project for a Fortune 5000 company, they don’t get paid up front. If they’re lucky they will get a modest sum down to get the job started, but not enough to move the needle. All or most of the balance for infotech services is billed after completion. This means TSPs have to come up with the money themselves to take on new jobs. Without money from somewhere, TSPs cannot finance the Cost of Goods Sold on a new job.

What is IT bridge financing?

The bridge funding needed in infotech services has to come from somewhere, or else TSPs will go out of business. Many use their own cash, but that limits their growth. Others borrow it if they’re lucky to have access to credit, but banks and lenders can call their loans at anytime. Nor do they care if your business goes South, they just want paid. Credit cards are too expensive but sometimes that’s an option. Or a TSP can sell equity, which means they give up profits forever just to make gross profit once. Technology Solutions Professionals should never finance their Cost of Goods Sold with equity.

The OAREX alternative is that TSPs can obtain debt-free, equity-free bridge capital with our cloud & IT financing.

OAREX’s Cloud & IT Financing

With our cloud & IT financing, TSPs can unlock cash flow from completed jobs. TSPs, in exchange for their receivables on hand, can get cash up front instead of waiting to get paid. This alleviates their need to incur debt, sell equity, or deplete their cash on hand to take on a new job. Access to capital from older jobs allows TSPs to finance the CoGS for new jobs. Access to more capital means you can finance new CoGS. If you can finance new CoGS, you can take on more new business. More business means more sales, more profits, and growth.

Learn more about our infotech financing. If you’re ready to get started, then open up an account!

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