With technology advancing so quickly, many companies often need to upgrade their enterprise technology every few years to avoid technological obsolescence. However, some may not be ready to invest huge sums of capital for technology refreshes. For this reason, many enterprises turn to Hardware as a Service (HaaS) for their equipment needs.

So, what exactly is Hardware as a Service? HaaS is a provisioning model where a business can get IT equipment on rent from a managed service provider (MSP). Similar to leasing, your organization enters into an agreement with a HaaS provider, agreeing to pay a fixed monthly cost for the equipment you need. The Hardware as a Service model is not purchasing the hardware itself, but rather the service to support the hardware. Becoming more and more prevalent, it offers a new way of obtaining hardware for any sized enterprise.

Does this sound like a program that could benefit your organization? Before you commit, here are five essential questions to ask before implementing it at your organization:


Why Hardware as a Service?

You may be asking yourself: what does HaaS do for me? One of the main benefits of the model is that it requires low upfront costs. Investing in a costly technology refresh can be a huge risk for your enterprise. But with Hardware as a Service, you can procure all-new hardware with minimal risk and investment. Further, you will be given a low, manageable monthly payment over the course of your agreement, making it a breeze to control your expenses.

In addition to low upfront costs, enterprises are not responsible for maintenance. If a product needs to be fixed or replaced, your MSP will send someone to service it, free of charge. This keeps you from having to shell out large amounts of money whenever you need something replaced or fixed. It’s also possible to receive a replacement product while they service the malfunctioning one, keeping downtime to a minimum.

While low upfront costs and free maintenance are considerable benefits, the overarching advantage of HaaS is staying up-to-date on the latest technology. HaaS makes it possible to avoid technological obsolescence by providing you with the latest technology and updating you whenever new technology arrives. With Hardware as a Service, you won’t have to worry about investing in technology that will soon become obsolete.


When is Hardware as a Service the Right Choice?

Deciding when HaaS makes sense for your business doesn’t have to be hard. For example, implementing the HaaS model is ideal for any enterprise looking to free up capital expenditures. With Hardware as a Service, you can put the capital you didn’t use to invest in new hardware toward operational efforts instead.

The model also makes sense for a growing organization, as it allows you to plan a fixed, monthly cost for each new team member’s workstation, mobile device, or other technologies. It also enables you to prepare for upgrades when you begin expanding your operations.

In addition to a growing organization, Hardware as a Service is ideal for an organization that wants to stay current and refresh their technology every few years. Some organizations like to stick with the same equipment for a long time while others would rather remain up-to-date. HaaS makes it easy for organizations to implement the latest technology to improve productivity and efficiency.


How Do I Choose a HaaS Provider?

One Hardware as a Service provider isn’t a fit for every enterprise. Choosing your provider can be challenging because every enterprise has unique needs. If you choose one that can’t support your enterprise, you won’t experience all the benefits the model offers. Here are some considerations:

First, you want to consider how global your HaaS provider is. If you’re a multinational company, your HaaS provider should be able to support you at all of your locations. If they have limited reach, you may have to partner with more than one provider to manage your other locations, leading to vendor sprawl. Paying for redundant services is not what you need when trying to save money through the Hardware as a Service model.

The provider you choose should also be willing to be transparent about their processes, protocols, and other methods. With your compliance on the line, you need assurance from them that they have nothing to hide so that you have nothing to hide from auditors.

Finally, the provider you choose should be efficient and reactive to critical issues that may arise. If their response time isn’t quick enough, it could cost you time and money when your operations are forced to shut down.



Can I Get Financial Support to Implement Hardware as a Service?

If you’re looking for financial support to implement HaaS, River Capital Finance has you covered. River Capital has financing options that you can access through value-added resellers (VARs) and MSPs.

By acting as in-house financing for VARS and MSPs, River Capital helps enterprises finance hardware investments for their clients. River Capital Finance allows VARs and MSPs to offer clients control over their expenses and relieves pressure on capital by using OPEX purchases rather than CAPEX.


What Happens at The End of My Service Agreement?

At the end of your equipment and service cycle, you can either choose to terminate your agreement or renew it. If you’re pleased with the Hardware as a Service and wish to continue, the equipment is often upgraded at no additional cost to you. If you choose to continue, your fixed monthly payments and technology upgrades will continue until the cycle ends again.

HaaS is an excellent way for enterprises to stay current with the evolving technology trends in order to remain efficient and productive. With minimal risk and investment, it may seem like a no-brainer to implement the model. However, it is still important to ask these five questions to ensure that HaaS is the right move for your business.

Are you ready to learn more about Hardware as a Service and discover how it can benefit your enterprise? Contact River Capital Finance to see if this innovative model is right for you.