Hardware-as-a-Service (HaaS) is a concept that has been taking the IT industry by storm. The philosophy of HaaS is simple; the provider owns the hardware and leases it to the client for a monthly fee. There are many benefits for providers and clients when considering a true HaaS procurement model including tax benefits, standardization, and scalability.
CAPEX vs. OPEX
A traditional IT procurement model requires the client to make a significant upfront capital expenditure to purchase the hardware they need for their business. With HaaS, that upfront Capital Expense becomes an ongoing operating expense. The benefit is that the operating expenses are tax-deductible, whereas equipment purchased outright is not.
In the world of IT there are a lot of different technologies and vendors to choose from. The hardware selection process can be overwhelming, like drinking from a firehose! One of the greatest benefits of HaaS is that it allows the provider to standardize on a specific lineup of technology. This not only makes the selection process easier for clients, but it also allows the provider to capitalize on their buying power and pass on the savings to the client. Additionally, a standard technology offering increases the provider’s technical efficiency by allowing the technicians to familiarize themselves with a certain model, vendor, and warranty process.
In today’s world of business, the ability to scale quickly is an absolute necessity. With HaaS, the process to scale can be much quicker and simpler than traditional procurement methods. If the provider has standardized their HaaS offering and committed to warehousing spare units, adding equipment for a client’s new hire can be a request that is resolved same-day, rather than a few weeks while equipment is ordered, shipped, and received before going on-site. This allows the client to be nimble when experiencing rapid growth and expansion.
“With HaaS, the process to scale can be much quicker and simpler than traditional procurement methods.”
When considering HaaS it is very important to understand the program, as there can be many different variations. To provide a standardized technology lineup with a hot-swap warranty will allow a provider to maintain an incredible SLA and offer great scalability for clients, but it requires a significant upfront investment for the provider to bring in and warehouse the right amount of stock. There are many pros and cons to consider, but reaching out to an expert in the industry with a lot of experience is a great place to start the journey of discovering if Hardware-as-a-Service is the right fit.