Instructor: Aleksi Aaltonen, Section 002

Device-as-a-Service (DaaS)

Major OEMs (original equipment managers) such as Dell, Hewett-Packard, and Lenovo are exploring the world of subscription based services. With DaaS, these major companies will offer a monthly (or yearly) subscription service that will allow businesses to offload the responsibilities of purchasing and maintaining equipment to third party vendors. This is similar to businesses outsourcing data storage to third party cloud storage providers, such as Amazon Web Services or Office 365. These services would include distributing and managing devices as well as retiring them once they’ve reached the end of a predetermined lifespan. Set, monthly payments would provide businesses with an operational expense and eliminate the headache of working capital expenditures into a budget.

Companies that offer these services are able to take processes that normally require maintenance and effort and make them non-factors for businesses. The popularity of the recent shift to subscription-based services is intriguing and reflects of the evolution of technology and its ubiquitous nature. The state of the subscription economy is headed in different directions and it is interesting to see how this culture will be reflected in the future.dell photo

5 Responses to Device-as-a-Service (DaaS)

  • What could be downsides? Which kind of companies should be most interested in DaaS?

  • This is an interesting topic since more and more companies are providing this service. As you stated, this sort of service will certainly allow the companies to convert the expenses from fixed cost to operating cost which is beneficial to certain companies. This service is especially effective for companies without the IT department or offices without any on-site IT technicians. For instance, for a bigger scale of the corporation, this service will provide fewer benefits. For offices and store without IT department/technicians it is certainly a great aid. For companies without a sufficient number of IT specialists but contain several business sites it will certainly be a great investment since it will potentially decrease the overall cost on IT tech transportation fee, opportunity cost of IT techs of traveling to the site when the technicians can be managing tasks that are beneficial or provide more benefits to the companies.

    • You make a good connection with those who have / do not have their own IT department. Getting rid of whole IT function or not having to hire any IT staff would be great for many companies.

  • I think this is something companies who do not outsource should look into. Overall it will probably be more costly but it will provide a sense of peace of mind since there will be little to no maintenance at all. Another benefit is that companies can always be updated with new tech as time progresses, oppose to purchasing new equipment every few years. What do you think, do you think companies should outsource?

    • Outsourcing is probably bit more costly than buying your own devices, but I agree that getting rid of the managerial complexity and headache (in addition to lower capital expenses) may well justify the extra costs.

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