Hardware-as-a-Service (HaaS) is one of the latest concepts to come out of the as-a-service industry. Much like the popular Software-as-a-Service (SaaS), HaaS offers a pay-as-you-go pricing model with customizable service packages that let you lease equipment as needed.
HaaS is a relatively new offering, but according to Tim Chamberlin, Research Director at Gartner, HaaS offers significant cost savings to businesses willing to get on board:
…We're still at the infancy of Hardware-as-a-Service but it is related to managed co-location, a very mature offering. The majority of potential clients are server-huggers; they refuse to lose their grip on their hardware. Co-location over the cloud removes the worry about the biggest capital expenditure issue - hardware procurement refresh.
Chamberlin rightfully points out that the biggest advantage of HaaS comes from the financials, but reducing costs is only the beginning of what HaaS has to offer.
The Benefits of HaaS
HaaS can be significantly cheaper in the long run than buying hardware on your own. Think about it in terms of our smartphones. Wouldn’t it be great if you could lease the newest iPhone each year right up until the latest model is released and then trade it in for an upgrade? This purchasing model would save consumers incredible amounts of cash. (Which is exactly why Apple doesn’t do it!)
Similarly, HaaS does the same for a business's IT infrastructure. Hardware is leased and maintained by the provider, and when the hardware reaches the end of its useful life, it's replaced at no additional cost. It's all part of the service, relieving your company from the burden of maintaining an extensive IT department and purchasing new hardware to keep up with the pace of change in technology.
Fortunately, managed service providers are more interested in building relationships than making a buck. HaaS offers three primary advantages for your organization:
- Reduced Costs: By leveraging HaaS in lieu of direct hardware purchasing, you can reduce the impact of hardware depreciation on your bottom line. The service-based pricing model also shifts the investment from an up-front capital expenditure to an ongoing operating expense, making it easier to perform cost/value comparisons over time.
- Guaranteed Security: Just like other pay-as-you-go services, HaaS guarantees security and reliability. If you’re leasing computers, printers, routers, or any other hardware, you have a contractual guarantee from your service provider that the product will perform as advertised. Heck, since they won’t get paid unless the service is active, it may even incentivize them to address problems quickly and stay on top of preventative maintenance.
- Reduced Assets Under Management: HaaS helps you reduce the number of assets you’re responsible for. Companies are bound by service level agreements to provide pre-arranged hardware rotations, updates, and troubleshooting support. If problems arise, you can contact them and let them handle the details. It’s a completely hands-off process that takes the burden of troubleshooting off your team’s shoulders.
Never Find Yourself Underequipped Again
Moore’s Law tells us that computer processing power will double every two years, leaving business owners with one of two options:
- Invest in costly infrastructure upgrades every few years that significantly cut into profits and leave you a victim of routine obsolescence.
- Work with outdated equipment that slows down productivity and comes up short when compared against competitors.
These used to be your only two options, but HaaS offers door number three:
3 Lease cutting-edge hardware from managed service providers.
Switching to HaaS ensures that your business has the latest and greatest equipment available on the market, with all costs based around your usage. It’s new solution that makes your operating costs predictable and your business technology agile—a win-win if there ever was one.