Device as a Service offers complete IT hardware, software, and services solution for a regular predictable monthly fee.
The business environment is changing, even more so in these past few months of a health pandemic. Business owners and leaders want to pay for exactly what they want, when they want it, and eliminate unnecessary waste. They no longer want mass market products but complete customization to fit their specific needs.
Due to this increasing demand for customization, new business models have arisen to accommodate them, and the consumption model will naturally continue to spread into nontraditional industries.
What is the Technology Lifecycle?
A technology lifecycle is technically defined as the span of a product’s existence from its initial development through the period of marketing and active use to eventual obsolescence. It is the beginning to end process of acquiring, installing, maintaining, tracking and the retirement of an asset in a business environment. These assets could be servers, laptops, desktop computer, tablets, or mobile phones.
Typically, a technology’s lifecycle can be extended through ongoing maintenance, updates and upgrades. Upon reaching the end of its most effective stage, the IT lifecycle moves to replacement, decommission and salvage.
For organizations large and small, refreshing a fleet of personal computing devices every 3 to 4 years can involve substantial costs, especially when considering peripheral expenditures for procurement, deployment, training, support, recovery, and asset management.
This is where Device as a Service, commonly known as DaaS comes in.
What is Device as a Service?
Device as a Service (DaaS) is a hardware subscription service which helps organizations mitigate the high costs of hardware replacements. It does this by taking a typical hardware device (such as a laptop, desktop, tablet, or mobile phone), bundling it with a variety of software and services, and offering it to a customer for a predictable monthly fee.
It is also very easy to manage because the business owner only has to deal with one contract, and has just one service provider to hold accountable.
And unlike hardware leasing, organizations get a holistic solution that allows for broad flexibility to scale the hardware over time.
Businesses are also given the ability to leave the challenges of lifecycle management to the DaaS provider, allowing the organization to stay focused on its core business.
A recent IDC survey found that 40.2% of respondents have engaged or are planning to engage in Device as a Service (DaaS) in the next 12 months to address their technology needs.
Subscription-based selling is nothing new. Companies like magazine publishers have been offering their goods and services for a monthly fee for years. However, more recently, a large number of industries have begun to pivot away from traditional go-to-market approaches to better meet customers’ expectations.
Most applications these days are going subscription based, including offerings like Microsoft 365, which includes Office 365 and the Windows 10 operating system.
In the last few years, companies like Microsoft, Google, Amazon, and Adobe have been offering subscription-based services for products and services that have been around for decades. The desktop computer and Smart Device industry is no different. It is yet another industry that recognizes the need for customization and has introduced an innovative way to meet the demands of its business customers.
The business benefits of DaaS
Cash Flow Management
For organizations struggling to remain competitive in their industry, conducting business in the post-financial crisis world often means a higher cost of capital and deeper constraints on liquidity.
Typically, organizations are required to incur huge, upfront capital expenditures when refreshing their devices. Many organizations today simply do not have additional capital to spend on non-revenue driving activities which forces them to delay device updates at the cost of productivity.
The DaaS model allows organizations to shift large IT budget allocations to more manageable cash flows over a planned period of time. It also presents a lower total cost of ownership (TCO) figure to decision makers and allows them to make more strategic decisions regarding the organization’s future investments.
DaaS provides options for an organization to quickly scale up or down based on the current operating environment and business need.
Whether growing or down-sizing, organizations can pay for exactly what they need, when they need it. Organizations will no longer be stuck with obsolete hardware, especially as technological innovation continues to outpace the average life span of devices. This means avoiding accelerated depreciation schedules and financial losses related to poor liquidation values at the end of a device’s life.
Industry experts agree that a three-year refresh cycle is the optimal length of time for computing hardware.
This allows the company to avoid unnecessary costs related to energy efficiency, security and most of all, workforce productivity.
According to research conducted by Intel Corporation, small business workers lose more than one work week per year due to antiquated PCs, not to mention the morale killing effects and employee frustration that come with using outdated technology.
Additionally, those same businesses are spending 30% more to repair computers that are four years or older compared to newer ones. In many cases, repair costs for older personal computers can exceed the purchase price of new PCs. With DaaS, the organization always has access to the latest technology and avoids costly repairs and productivity delays from aged devices.
Work styles and environments are changing. Corporate cultures are rapidly shifting from a sedentary, fixed-schedule structure to a “work anywhere, anytime, with any device” mantra.
Following this trend, software companies have begun to shift from products made for laptop/desktop PCs to fully functioning mobile apps that allow users
to be mobile as they work. DaaS providers are also following these trends and are bundling a variety of software and services designed to enhance a user’s mobile experience and reduce the costs to an organization interested in providing such an environment to its workforce.
IT benefits of Device as a Service
IT support is often one of the largest annual expenses an organization incurs. Whether it’s configuration and deployment or IT help desk services for its employees, IT expenses often amount to a significant portion of an organization’s operating budget.
DaaS and the bundled software and services it offers with hardware, allow an organization to strategically outsource costly individual IT requirements or completely rid itself of the entire PC support lifecycle, reducing the burden on internal teams and more importantly, on the organization’s profitability.
Additionally, invaluable tracking and reporting dashboards that provide details on asset tracking, usage, software installation, and outages can be added as a part of the service.
DaaS is the future
The world of computer buying is changing, and the Device as a Service model is the future.
As business models change and product offerings become more customized, decision makers are recognizing how DaaS will benefit their organizations.
They are finding that this type of monthly consumption model offers the cost-savings and flexibility they haven’t been able to find with traditional PC purchasing models.
Organizations no longer need to compromise on productivity because operating budgets de-prioritize IT investment. They can now run their businesses at optimal levels with the confidence that their limited investment dollars are being efficiently allocated.
Tech Prognosis can provide these lifecycle services with the flexibility to meet the needs of clients of all scales and environments types. Contact us today at (512) 814-8044 for a no obligation assessment of your business to see if you are a fit for Device as a Service.
You can also reach us by using our contact us form.
Credit: This article contains content provided by Lenovo.
Tech Prognosis is a Lenovo partner.