Hardware as a Service Propels Companies Forward While Conserving Cash
The pace of technological change is relentless, and it seems to be accelerating year after year. Keeping up with it can be a daunting challenge, especially for small and medium-sized businesses (SMBs), whose resources are often too limited to justify purchasing new hardware on a regular basis.
To stay on the cutting edge of technological progress with large enterprises, SMBs are increasingly embracing the hardware-as-a-service (HaaS) subscription model. In this article, we take a closer look at some of the most important advantages of HaaS to explain how it propels companies forward while conserving cash.
What Is Hardware-as-a-Service (HaaS)
HaaS is defined as a subscription model in which hardware devices are provided according to a service level agreement (SLA) that defines the responsibilities of the customer and the provider (typically an MSP). This model can be seen as a subtype of leasing or renting, but the major difference is that the customer is paying for the service—not the hardware.
Some of the most important responsibilities of HaaS providers are ongoing maintenance and support. This means that businesses of all sizes can easily obtain any hardware devices they need while maintaining a sharp focus on their core business. HaaS providers also include hardware refreshes to ensure that their customers have access to the best equipment available.
According to the 2019 State of Hardware-as-a-Service survey conducted by Spiceworks, which included organizations in North America (77 percent) and Europe (23 percent), half of all organizations that lease hardware use the HaaS model. At the device level, printers and copiers are by far the most commonly acquired devices using the HaaS model, followed by networking equipment, desk phones, servers, desktops, laptops, smartphones, and tablets.
Over the next two years, an additional six percent of organizations leasing hardware plan to adopt the HaaS model, with retail, education, finance, and manufacturing industries leading the way in HaaS adoption.
Top Benefits of Hardware as a Service
Now that we’ve explained what hardware-as-a-service is and how it differs from traditional leasing and renting, it’s time to more closely describe some of its main benefits.
Low Upfront Capital Expenditure
It can cost an almost absurd amount of money to purchase the latest and greatest networking equipment or personal computers—money most SMBs don’t have. With HaaS, even cash-strapped businesses can equip themselves with the technology they need to be competitive without having to pay a lot of money upfront, only to pay a similar amount a few years down the road when the once-new hardware is no longer so shiny and reliable.
Because most HaaS providers utilize a flat monthly fee, businesses can easily budget their hardware expenses and completely avoid unwelcome financial surprises associated with hardware failures and troubleshooting, giving them the peace of mind they need to expand their business and launch new products and service offerings.
Remaining on the Cutting-Edge
Moore’s law states that the number of transistors in a dense integrated circuit doubles about every two years. This explains why a computer purchased in 2010 is barely usable in 2020, and why hardware becomes obsolete much sooner than most businesses would like. HaaS elegantly eliminates the issues associated with hardware obsolescence by including timely upgrades to cutting-edge technology.
Businesses that choose HaaS don’t have to waste valuable time by coming up with a sensible hardware purchasing strategy that takes into account their current financial situations as well as future technological needs. Instead, they can constantly remain on the cutting-edge of technological progress and dynamically fulfill their hardware needs as they shift focus from one objective to the next.
Removing the Burden of Maintenance
It would be interesting to know how much money SMBs around the world lose every year due to various issues with aged hardware, such as a broken printer or slow laptop, but the number would most likely be extremely large. That’s because many hardware issues are not just costly to repair but also cause downtime, whose cost can greatly exceed the cost of the repair.
HaaS removes the burden of maintenance by including equipment availability in the SLA. When something goes wrong, the business can simply call its provider and ask them to send someone to fix the issue. The provider then has a certain amount of time to either repair the problematic piece of equipment or replace it. But regardless of how the problem is solved, the business never pays anything beyond the recurring fee.
Enhanced Scalability and Flexibility
As businesses grow, their technology needs change naturally. When this happens, it’s important to react quickly to maintain forward momentum, and HaaS lets businesses do just that thanks to its built-in scalability. Equipping newly hired employees with personal computers and mobile devices or acquiring networking equipment for a new branch can be as easy as emailing the provider and letting it take care of everything.
Of course, most businesses experience periods of growth as well as periods of stagnation or even decline. That’s when it may be necessary to scale down equipment and allocate the saved money elsewhere. Again, HaaS makes this simple, so businesses can pay only for what they really need.
Hardware-as-a-service is a cost-effective model that enables small and medium-sized businesses to always enjoy state-of-the-art hardware equipment, propelling them forward toward their goals and objectives. It reflects the fact that businesses in this day and age must be agile and able to quickly adapt to rapidly changing circumstances. If you would like to learn more about HaaS and how it can benefit you, contact us at TechGen Consulting and we’ll help your team leverage current tech while conserving your cash-on-hand.