Device as a Service - No Nasty Surprises and a Lower TCV – What’s Not to Love?
From software, to movies to fitness, subscription-based models have increasingly become part of our home and working lives. Changing habits, increased mobility and a shift towards a more circular economy are prompting many different sectors to consider subscription models. For example, IKEA is currently trialling furniture leasing in 30 different markets worldwide*. (Sofa-as-a-service anyone?)
In Enterprise IT, mobility trends intensified by COVID and a tougher economic climate have now created the perfect storm for IT Devices to become part of the as-a-service story.
Why now for Device as a Service (DaaS)?
Even pre-COVID, mobility within the workplace was on the rise. This is reflected in the higher number of average devices per employee, currently sitting around 2.3 devices for every employee.
But it’s not only the quantity of devices on the up; quality is also tracking upwards. This is largely driven by changing employee expectations. For example, if you are enjoying the latest Microsoft Surface device at home, it’s unlikely you would be happy switching to a clunky, dated laptop in the workplace.
Now, more than ever, companies are constantly changing shape, reducing or increasing head counts. This turbulent market is ideal for a DaaS model that can scale and contract in line with the workforce demands.
What exactly is Device-as-a-Service?
Device as a Service is as it sounds, the leasing of Enterprise IT devices on a per user, per month basis. Rather than one large upfront CAPEX payment the cost is amortised on a monthly basis.
Devices include, mobiles, laptops and tablets as well as peripherals such as headsets, mice, keyboards. In other words, everything you need for efficient working on-the-move.
In some respects, DaaS is the next step on from pooled VDI desktops. VDI has its merits but this latest shift reflects the increased need for mobility and the move towards a more of a personalised computing approach.
But Device as a Service is far more than a drop-and-run service. It also includes a robust service wrap, including ongoing maintenance and support. For example, firmware updates, refreshes and upgrades as well device security with secure wiping of devices before they head back into the resale market. DaaS, takes away the complexity of monitoring and managing thousands of devices from often over-stretched internal IT teams.
The Benefits of DaaS for Enterprise IT
Just as in the consumer subscription model, the benefits are broadly the same; it’s a predictable monthly cost with no nasty surprises. And if something goes wrong, you just contact the service provider, and the issue gets quickly sorted.
When evaluating the TCV (Total Contract Value) it’s worth noting with Device as a Service, you only start paying when the device is in the hands of the end user.
This compares favourably to a traditional CAPEX model where devices can often sit merrily depreciating in a warehouse before anyone has even switched them on.
One of the biggest benefits we outline to our customers of this model is that it reduces the overall spend customers need to make.
Especially when you factor in the much lower headcounts required to run and maintain the huge number of devices within an enterprise. Our smart calculators can quickly help project your costs over a 1, 3 or 5-year period.
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Why A Robust Service Wrap is an Important Consideration for DaaS
As with all subscriptions, whether it’s your gym subscription, or your broadband, if the service doesn’t come up to scratch, it’s unlikely you will sign up for another year.
That’s why the service aspect of DaaS is just as important, if not more important, than the device itself.
To this end, we have made significant investment in roles such as customer success managers, transformation and adoption consultants to deliver a true DaaS model.
Device as a Service is just one element of our broader Modern-Workplace-as-a-Service. In other words, our ability to reduce complexity in the workplace by taking care of everything from operating systems, to productivity applications to ongoing management, monitoring and security.
Is the Device as a Service Model right for your organisation?
If you would like to understand more about how Device as a Service operates in practice, register for a workshop. Our experts will share the key steps you need to equip your employees with future-ready modern devices.
Mark Skelton, CTO, Telefónica Tech UK&I