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As budgets get tighter, purchasing new devices is becoming nearly impossible for many. Yet, many businesses need to be equipped with the right and latest technological resources for staff to do their work. According to Lenovo, only 16% of medium-sized businesses employees and 12% small business employees believe their companies are adopting new technologies.

Hence, more cost-effective device business models have emerged to handle device procurement, management, support, and refreshes. This allows organizations to manage the entire lifecycle of a device through a simple monthly service cost.

This article evaluates the growing challenges and costs of purchasing and managing computer hardware, and why businesses should consider outsourcing to a Managed IT Service Provider (MSP) that offers Device as a Service solutions. 

Why Purchasing Hardware is Cost-Prohibitive? 
One reason purchasing hardware can be cost-prohibitive is that it gets outdated quickly – as quick as three to five years according to Business News Daily. A three-year-old computer will likely need to be replaced due to new software updates and applications. Even if the hardware is still functioning, it will become a liability as support and security risks increase

Not only does hardware need to be constantly updated, but it also needs to be properly managed. This includes maintaining and repairing hardware, as well as provisioning and deploying new devices. These management tasks can be very time-consuming and expensive for businesses, especially if they don’t have an in-house IT team. 

Additionally, businesses need to worry about data security when it comes to their devices and data. With more and more sensitive data being stored on devices, it’s becoming increasingly important to have a robust security solution in place. 

All of these factors need to be considered when purchasing new hardware. The upfront cost of the hardware is only a small part of the total cost of ownership. 

What is Device as a Service? 
Device as a Service (DaaS) is a solution that provides businesses with all the benefits of owning devices without the associated costs and risks. 

According to Grand View Research, the global device-as-a-service market size was valued at USD 30.75 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 37.8% from 2021 to 2028

With DaaS, businesses can outsource the management of their devices to an MSP. This includes tasks such as deploying new devices, maintaining and repairing existing devices, and provisioning updates and security patches. 

DaaS is becoming an increasingly popular solution for businesses of all sizes. It’s a cost-effective way to manage devices, and it frees up businesses to focus on their core operations. 

What Are the Advantages for Buyers Adopting Device as a Service?
Device DaaS is the perfect solution for businesses that want to save time and money on their device management. Logically’s DaaS solution for instance enables businesses to only pay for what they use. This makes it a much more cost-effective solution than purchasing devices outright.

DaaS gives businesses the flexibility to scale their device fleet up or down as needed. This is perfect for businesses that experience seasonal spikes in demand, or for businesses that are expanding or contracting. 

Lastly, DaaS gives businesses access to 24/7 support. This is extremely valuable for businesses that don’t have an in-house IT team. With DaaS, businesses can rest assured that their devices are always up and running.

To DaaS or not to DaaS?
It all boils down to what you want to achieve if you plan to adopt DaaS for your business. For most organizations, DaaS is an attractive incentive because it’s cost saving and businesses have access to the latest and updated devices for staff to do their work. It’s also a strategic decision as businesses can easily scale up, or down without the need to allocate a huge budget to procure devices. If you’d like to explore if DaaS is a good fit for your business, speak to our experts and they’d be more than happy to help you plan.