Subscription-Based Service Growth Has Been Tremendous
It’s no secret that “as-a-service” models have been growing in popularity for several years, with year-over-year projections and performance showing nothing to contradict that. Utilization of offerings ranging from software-as-a-service (SaaS) to security-as-a-service (SECaaS) within organizations of all industries and sizes is increasing rapidly.
In 2019, Gartner predicted global IT spending would increase 3.2 percent to $3.76 trillion with as-a-service models driving growth in data center spending and enterprise software. SaaS continues to lead the charge well into 2020, too, with that core area forecasted to hit $116 billion this year followed by infrastructure-as-a-service (IaaS) expected to hit $50 billion. But what about hardware subscription services?
A hardware subscription isn’t a new concept, yet adoption has not achieved the same level of popularity as its other as-a-service counterparts. Hardware-as-a-service (HaaS) has been forecasted to achieve a compound annual growth rate of 26.8% until 2025, and as more and more companies begin to explore the benefits of a hardware subscription, we could see a shift in the growth of this particular model just as we saw the sharp increase in SaaS solutions permeating tech stacks at a faster and faster rate.
So, why should your organization consider a hardware subscription? It’s likely that you already have a SaaS, IaaS, or another as-a-service model already in place at your organization, and that the benefits of such a platform are already discernible. But the perception isn’t always the same when it comes to hardware. However, in industries and organizations where the latest technology is critical to success (such as retail), or where improving ROI and avoiding depreciation are aspects of a greater financial strategy, a hardware subscription is ideal.
Benefits of a Hardware Subscription
1. You Free Up Capital for Other Uses
One of the common barriers to entry in obtaining new hardware simply comes down to the resources your organization has available. If your current hardware is becoming outdated, is slowing down production in your environment or in the field, is costing you too much money in terms of repairs, it may be time for a new solution. However, it can quickly become challenging to get approval to purchase new enterprise hardware due to its sheer cost.
It’s important to understand that your organization will continue to suffer the negative effects of your failing hardware until a new solution is implemented — and those effects can have a drastic financial impact. With a hardware subscription, the need for significant upfront capital is eliminated because you’re simply paying a monthly fee for the hardware you need. This frees up your capital for other strategic purposes rather than tying it down in hardware that may or may not retain its value over the first few years of its use.
Additionally, a hardware subscription helps you achieve ROI significantly faster. This is because the runway between hardware procurement and the repayment of that expense through benefit realization and productivity enhancement is nowhere near as long as if you’d purchased the hardware outright. If you’d done the latter, it could take years and years to hit your payback figure, and by then, the hardware may need to be replaced. At that point, you’d be out on the investment you made in that hardware, only to find yourself in the same position all over again.
2. You Get the Latest and Greatest — Repeatedly
When it comes to hardware, you and your team members want the best available. While it’s common to use hardware a generation or so behind in favor of the financial benefits (like many choose to do with consumer mobile devices), hardware at an enterprise level is still expensive. Even if you were to choose a second-generation solution, the window for support and maintenance is smaller than if you had new hardware. And yet, new hardware is even more expensive. Is this a catch 22?
Not at all. A hardware subscription removes your organization from this scenario entirely. Because you’re financing the hardware into a package and paying on it monthly, you can get the latest and greatest mobile devices, POS options, printers, barcode scanners, or any other hardware you’re looking to obtain — without the significant expense. This ensures you’re able to enjoy high-performing hardware that’s as far away from maintenance and upgrading as possible and that helps you achieve your workplace goals faster.
3. You Get Insights into Program Performance
If you were to purchase your own hardware, you would logically be responsible for implementing any analytics and reporting solutions for program oversight. While some hardware manufacturers may provide a solution specific to their respective devices or services, you naturally have more than just one type of enterprise hardware running in your organization. Without oversight on all your devices in a centralized solution, you won’t be able to understand how well your enterprise hardware program is performing — or not.
With a hardware subscription, particularly one from River Capital Finance, all reporting and analytics are provided for you — regardless of the devices you’re using and where they are in your footprint. You can view information about the performance of your hardware, how employees are or aren’t using their devices, and what the status of any repairs or new additions may be. It’s all centralized, exportable, and reportable to those that want to view this information.
Don’t Work with Just Any Hardware Subscription Provider
River Capital Finance has been supporting organizations in multiple industries throughout the United States with their hardware needs for decades. As the premier hardware subscription service provider, we understand the intricacies of program implementation and the roadblocks organizations typically face. We use this knowledge to help our clients successfully navigate the challenges of enterprise hardware toward a repeatable, measurable solution.