Device as a Service is growing in popularity as end users take advantage of the cost and efficiency savings it can bring, as well as helping towards sustainability goals, which means it is something resellers should be looking to provide.
For businesses, maintaining IT equipment and ensuring infrastructure is up to date can be expensive and time consuming to do in-house. With time and budgets often tight, managers may feel there are better ways for their IT team to spend their time. This is where Device as a Service (DaaS) can provide real benefits – and it is something increasing numbers of businesses are looking to do.
“While PC and hardware shipments have been declining over the past quarter, by up to 37% according to Canalys, purchases through as-a-service are increasing by about 30%,” notes Dirk De Wolf, senior director customer solutions at TD SYNNEX. “Most resellers also indicate that their efforts in the as-a-service business model will only grow. Budget constraints help in looking for new opportunities and ways of doing business, along with the many advantages DaaS brings. Growth can be seen in the enterprise and SMB channel.”
Advantages of DaaS
Growth in demand for DaaS is not surprising as there are many advantages for businesses to use it. “DaaS provides an ‘all-in-one solution’, by combining hardware with software and services for one monthly price,” Dirk says. “It ensures that the end user always has the most suitable solution for their specific situation, without the need of fearing budget constraints.
“DaaS also provides a business model that fits all stakeholders within the company. Finance benefits from clear budgeting, with no surprises and IT teams need to spend less time maintaining systems thanks to always up-to-date infrastructure and the included services. As well as this, procurement teams enjoy easier contract management and buying processes.
“Resellers see benefit from DaaS through providing the best possible total solution to their end user at a monthly price, so deals are not lost due to budget constraints. They also see new sales opportunities at the end of the agreement, which leads to a stronger relationship with the end user. Resellers offering DaaS can also position themselves as a differentiator compared to those that do not.
“Another benefit of DaaS is sustainability – products get returned and refurbished and the end-of-term, giving them a second life and avoiding waste.”
Sophie Boulo, solution development manager – UK at Ingram Micro Financial Solutions, agrees that sustainability is a key driver for DaaS adoption. “Organisations are becoming very ESG [environmental, social and corporate governance] focused,” she says. “End users are increasingly concentrated on the circular economy and implementing their own ESG policies. So having the ability to deliver a solution that incorporates remanufactured devices as well as new ones in a DaaS model goes towards supporting their ESG goals.”
She adds that discussions around ‘As a service’ are growing rapidly and is probably the most prominent conversation Ingram Micro is having now. “The demand for greater flexibility in businesses continues to grow and in tandem with that so does the demand for smarter financial terms,” she says.
“As organisations continue to innovate, technology continues to improve and the way we interact with IT evolves. The great thing about DaaS offerings is they are accessible for all types of deals and can include a variety of services. So, we encourage all reseller partners to talk to us about how they can leverage our highly effective deal structures.”
Developing a DaaS offering
Stuart Hayes, regional business manager – EMEA at Ingram Micro Financial Solutions, adds that reseller partners can develop a DaaS offering through partners. “Ingram Micro Financial Solutions has a suite of products to enable resellers to deliver DaaS with ease,” he says. “We can support deals from a single unit deployment or a single device deployment through to a full-blown device lifecycle management solution that caters for things like product acquisition, legacy asset acquisition, inventory management and asset tracking, all underpinned by a finance vehicle.”
Miguel Rodriguez, managing director of SYNAXON Hub, adds that for partners, DaaS provides a steady income stream – and one that’s likely to grow – rather than one-time income from a capital sale. “Put simply, DaaS makes sense for everyone – it’s the future of desktop computing and it’s here now.
“Demand is growing across all sectors. The benefits are just as appealing whether you are a large corporate organisation or a small business with a handful of users. Most businesses are small businesses and that is where we see the biggest opportunities for our partners.”
Miguel adds that for resellers partnering can be the best way to provide DaaS. “For instance, the SYNAXON Managed Workplace solution provides a simple, all-in-one solution that is ready to deploy and easy to manage,” he says. “For partners and customers, it’s a worry-free option that provides everything they need.
“Solutions are tailored to a customer’s requirements and a range of options are available for Managed Workplace configurations through the SYNAXON Hub. It’s a great way for partners to provide additional value, get closer to customers, and build the long-term relationships that will bring stability and profitability to their business.”
Growing opportunities
Miguel adds that the opportunities with DaaS are growing all the time. “As end user businesses become reliant on their digital systems and find it harder to recruit and retain people with IT skills, they are turning to managed services and for many organisations this is already the preferred way to manage their technology,” he says.
Dirk adds that if resellers show the willingness to start offering DaaS, there is support available to guide them to success. “This includes in-depth training, from ‘starter’ to ‘experienced’ level, marketing assets that can be used by resellers and a platform that provides an automated flow, from quoting to document management and renewals,” he says.
He adds that DaaS is set to continue to grow in the coming years. “Already we have seen that resellers are convinced that DaaS is the future and are acting accordingly,” he says. “Over the next 18 months we see more vendors moving into the DaaS solutions space and will ultimately provide ‘DaaS only’ offerings. As well as this, programmes and options will be more and more flexible, moving into consumption-based offerings.”
