What is Hardware as a Service? How Can It Benefit My Organization?

What is Hardware as a Service?

Hardware as a Service (HaaS) is a subscription model that provides software and hardware as a monthly service. Clients can gain access to new hardware by paying a monthly subscription fee instead of investing large amounts of capital outright. The equipment is procured and installed by a managed IT service provider (MSP) and a service level agreement (SLA) is put in place to clearly define both the MSP and the client’s ongoing responsibilities.

Hardware as a Service helps your business acquire the necessary technology and when combined with a managed IT services plan, this solution provides the critical ongoing monitoring, and maintenance services for the technology. This combination makes it possible for businesses to plan on a consistent operational expense. HaaS greatly reduces the stress of unexpected capital expenses and ensures your businesses infrastructure is up to date. If the hardware breaks or goes out of date, your HaaS provider will work with you to acquire a new solution to meet your needs.

The response will depend on the agreed upon SLA terms. Different HaaS providers will have different terms that will have to be complied with. These may include deleting proprietary data, destroying hard drives, and determining when the process will occur.

Reasons to Consider Hardware as a Service for Your Business

There are a variety of reasons a business might consider hardware as a service. These include cost efficient hardware acquisition, reliable hardware solutions, and improved security. We breakdown these benefits below.

Cost Efficient Hardware Acquisition

Hardware as a service benefits any business that is looking for a cost-effective way to provide necessary infrastructure for their employees. By turning a large capital expense to a reliable operating expense, hardware as a service makes it possible for businesses to obtain up-to-date hardware that is more secure and reliable.

Reliable Hardware

It can be overwhelming financially to budget enough resources to constantly keep up with the release of the latest technology. The hardware as a service model makes it possible for organizations to obtain new technology that is reliable through a low monthly cost. It also ensures if the equipment fails, it is properly replaced or fixed.

Improved Security

Hardware as service makes it easier for organizations to acquire new technology models that are more equipped with advanced security measures.

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Pros and cons of Hardware as a Service

Making the decision to purchase hardware as a service may seem overwhelming. We breakdown the pros and cons of this service below.

Pros of Hardware as a Service

Predictable Monthly Price

By turning a steep capital expense into a monthly operational expense, your accounting team will be able to plan on future payments and create a reliable budget for your organization moving forward. By reducing the amount of upfront spend, this solution increases cash flow and allows your accounting team to include the hardware expense within a year’s time.

Scalability at Your Fingertips.

Businesses can grow, downsize, or change their technology needs. Working with a managed IT service provider that offers hardware as a service, ensures you can adjust your IT equipment according to your needs. Whether you need to scale up or down, your HaaS provider will help you achieve a stable and reliable environment.

Deeper Product Understanding.

Hardware as a service allows your HaaS provider to discuss on a deeper level which hardware solutions will assist your business in achieving your greater business goals. Instead of sharing a solution that fits a large capital expense budget, they can share which solutions are the right fit and package them in a consistent operational expense.

Value Aligned to Business Goals.

Hardware as a service allows individuals to access essential technology at a predictable price. This allows organizations that could not afford updated hardware at a steep capital expense, the opportunity to gain access to technology that aligns with business growth.

Cons of Hardware as a Service

Long Term Agreements

Individuals that sign an agreement will have the opportunity to buy out of the term at any point, but they will be committing to the payment for the remainder of the agreed upon contract.

Hardware as a Service Alone Does Not Cover Maintenance and Support

The HaaS subscription model provides a way to acquire technology, but it does not include ongoing maintenance and support.

What Hardware Can Be Provided Through the Hardware as a Service Model?

Most IT infrastructure can be provided through the hardware as a service model. This includes but is not limited to desktops, laptops, firewalls, servers, and switches.

Summary

Hardware as a service is a completely new way for organizations to implement innovative technology fit for their business. The model changes the relationship between the HaaS provider and the customer; it opens the door for businesses to access best in class technology at a stable price. While this model may not be the right fit for each organization, it can be a great tool for businesses to consider moving forward.