Who doesn’t love new computer tech? The benefits of increased speed, performance, features, efficiency… what’s not to love? Oh, right — the cost.
The cost of computer hardware has come down since the advent of the personal computer, but is still significant. With computers in particular, in addition to the initial hardware purchase price, there is also the cost to maintain the hardware and software over the life of the computer. This includes the initial setup, testing and deployment, support over the computer’s useful life and the eventual retirement. For a typical computer, the lifetime upkeep costs can add up to over five times the amount of the initial investment.
With these factors, the love for new computer technology is jeopardized – enter Hardware as a Service, or HaaS for short!
What is HaaS?
HaaS, as defined by TechTarget, is “a service provision model for hardware that is defined differently in managed services and grid computing contexts.” In managed services, HaaS is similar to licensing. In grid computing, HaaS is a pay-as-you-go model. In plain English, this means HaaS is essentially a super lease for your technology hardware, and it’s not just limited to computers. Your HaaS agreement typically provides for the hardware cost, the warranty expense, and all of the maintenance that the computer will need over its lifetime. Managed Service Providers (MSP) who offer HaaS will typically include desktops, laptops, servers, computer peripherals, networking equipment, printers and more.
SOME OF THE BENEFITS:
• No or Little Initial Investment — When you decide to go with HaaS, there is no or little initial investment required. You will be provided with all new, industry-leading equipment without any of the expense typically associated with such an upgrade. This typically includes the labor costs associated with the deployment of the equipment.
• No Surprises — Since HaaS includes all the maintenance required for the hardware, there are no surprise bills, and computer issues are minimized or eliminated. When it’s time to replace the computers, or any of the hardware, there is nothing new to budget for. The monthly payment just continues.
• Flexibility — With HaaS plans you can easily add additional equipment or remove unnecessary equipment. This allows you to get only hardware you need as the size of your business changes without having to incur unnecessary expense.
• Current Hardware — With HaaS you don’t need to worry about trying to keep up with the latest and greatest. That will be taken care of for you, ensuring you have the most innovative technology without having any of the large expense.
• Tax and Financial Benefits — Ask your tax professional for how a HaaS arrangement will specifically impact your tax liability, but usually businesses that take advantage of HaaS will have a decreased tax liability. This is due to the fact that instead of being listed as a capital expense, equipment will be listed as a service. HaaS also allows businesses to obtain needed computer hardware without incurring more debt. Having less debt on a balance sheet is obviously beneficial for many reasons. There are other benefits to HaaS — to learn more about them, or how HaaS can take care of your hardware needs without tying up a lot of cash, talk to your IT professional.
MICHAEL E. REMER is founder and president of ComputerCare LLC, an IT services company providing a full spectrum of IT solutions and services to small and medium businesses.