Device as a Service (DaaS) is a new model that has the potential to transform how enterprise IT refreshes and manages its employees’ devices. Logically’s chief strategy officer sheds light on how organizations and smaller businesses can use it to their benefit.Â
As business IT continues to transition to a monthly subscription model, it has become increasingly clear that Device as a Service (DaaS) is the next logical step for businesses of all sizes. Rather than make the capital investment and purchase the essential hardware upfront, businesses can lease them with a predictable monthly payment. Laptops, switches, servers, firewalls, and tablets are all good candidates for DaaS.Â
However, the true strength of DaaS goes beyond its “lease don’t buy†model. An array of services, including device backup, security, asset tracking, and lifecycle management, can be covered with the convenience of a subscription.Â
According to intelligence firm IDC, IT directors have estimated that DaaS can cut technology expenses by roughly 24%. Therefore, it should come as no surprise that DaaS is catching on fast. In 2015, not a single major PC manufacturer offered DaaS to their customers. As of 2019, over 65% have introduced DaaS packages. Some have even partnered with MSPs to offer this comprehensive coverage.Â
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Here are four reasons why DaaS is good for business:
1. Improves Management of Cash Flow
The traditional way of purchasing IT equipment is to pay a high price up front. As devices break, businesses are required to lay out capital to replace them. The result is that many devices are on different “refresh†cycles, which companies have to track. It also means they face an inconsistent cash flow as they must accommodate large, irregular purchases to replace hardware.
Device-as-a-Service offers businesses the opportunity to streamline their budgeting. A company that subscribes with a DaaS provider will pay the same fee every month, likely for the entire duration of their contract. DaaS is all-inclusive, so if a tablet breaks, a DaaS provider will likely repair it at no additional cost. This type of payment structure can help companies avoid the unexpected expenses of device replacement, repair, and business interruption.
2. Makes Sure They Have the Latest High Performing Devices
Technology is continuously depreciating, meaning that the server a business purchase today will be worth much less four years down the road. Therefore, it makes little sense to view purchasing technology as an investment. One of the most significant benefits of DaaS is the easy replacement of outdated technology. DaaS subscriptions will typically offer a replacement of devices every two or three years in most contracts. Because unit costs generally change nominally, there is no reason to stick to any outdated hardware or infrastructure for the sake of cutting down expenses, and organizations can rest assured that they are transitioning to the most up to date technology available. This agility has a positive impact on business productivity.
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3. Provides the Latest Security
Everyone wants to squeeze extra life out of their devices. In the past, most businesses prioritized saving money and postponed hardware updates whenever they could. However, more industry leaders are coming to realize that older models aren’t just a little slow; they’re potentially creating significant holes in security systems.Â
The upside of DaaS is that you will always have up-to-date security features built into your hardware. For example, in the past 6 months, new technology has been developed that allows a computer to use unused resource capacity on its graphic card to handle security loads. The set hardware refresh cycles inherent to DaaS ensure that these latest hardware-based security upgrades are incorporated into your business technology assets and that risks associated with hardware used beyond the recommended lifespan are mitigated. DaaS providers can also implement extra security packages and advanced features that in-house staff may not be equipped to handle. Â
Outsourcing select services to a DaaS provider is often more cost-effective in the long run. With fewer responsibilities, in-house IT staff have more resources to support applications critical to the business. Therefore, many businesses choose to have their technology co-managed by their IT department and the DaaS provider.Â
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4. Covers Everything From Installation to Disposal of Old Devices
The setup and destruction of any hardware or infrastructure usually cost more than the device itself. That’s why a major benefit of DaaS is that devices come preloaded with relevant software packages.Â
DaaS services are committed to covering the entire lifecycle of the technology they offer. When a business stops using a device, their DaaS provider takes the often-arduous responsibility of disposing of the device as per industry standards. DaaS providers will also go the extra mile and offer their customers evidence to reassure them that all sensitive information is removed from junked devices.
How to Get DaaS
DaaS continues to grow exponentially in popularity, with a projected CAGR of over 50% between 2020 and 2023. Companies in regulated industries like financial services, biopharmaceuticals, government, defense contractors and healthcare, stand to benefit the most by switching to a DaaS model.
There are many ways that a business can sign up for DaaS. If you already use a managed service provider, check with them to see if they offer DaaS. If you don’t use an MSP, you may be able to get DaaS through a nationwide Technology Solution Provider specializing in DaaS or directly from the hardware manufacturer.
As more businesses become aware of the advantages of DaaS, there will no doubt be increased interest in this acquisition, support, and refresh model. The adoption of DaaS by companies in various industries proves that the only barrier to DaaS is a lack of understanding about its benefits. This will change sooner than later.Â
Will the adoption of DaaS become commonplace in the post-pandemic era? Let us know your thoughts on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We would love to hear from you!