Device-as-a-Service: The Ultimate Guide

What is DaaS?

Device-as-a-Service (DaaS) is a commercial model that offers devices (like computers, laptops, tablets, and more) through a subscription-based model as an alternative to one-time purchases. 

The DaaS approach streamlines IT operations by transferring device lifecycle management responsibilities to the device supplier rather than keeping them in-house. 

Since most organizations need hundreds of devices, buying them means making significant, upfront capital investments. On the other hand, DaaS spreads out the expenses, narrowing them to manageable, recurring operational costs with monthly per-device fees. It's thus an attractive option for SMBs.

DaaS began gaining traction after HP launched the model for businesses in the mid-2010s. Within a few years, major hardware retailers like Dell, Lenovo, and others followed suit with their own DaaS packages. 

The popularity of DaaS has been growing steadily, and by 2025, one in three commercial computers will be acquired through the DaaS model. 

Also Read: Lease or buy IT hardware

Devices-as-a-Service vs. Desktop-as-a-service

Device-as-a-service and Desktop-as-a-service are not the same! 

They’re two distinct service models that fulfill different IT needs within organizations. 

Device-as-a-Service provides subscription-based service for various devices, such as laptops, desktops, tablets, and smartphones. This model outsources these devices' procurement and overall management to an external provider.

On the other hand, Desktop-as-a-Service is a cloud computing solution that delivers virtual desktops to end-users over the Internet. It is also known as Virtualized Desktop Infrastructure, or VDI, as users access instances of virtual desktops from their devices, but a central server hosts all the resources. 

It includes everything you expect from a computing device–operating systems, applications, and data, accessible from any device with an internet connection. 

Device as a Service vs Workwize

Workwize is a zero-touch IT device management platform that automates the entire device lifecycle, from procurement to disposal.

It’s perfect for modern, hybrid work environments with teams of 200-5000 FTEs. It works across 100+ countries to securely, reliably, and conveniently manage all your hardware.

From procurement to retrievals, Workwize automates the entire hardware equipment process and ensures work-ready equipment reaches all your employees on time, anywhere in the world.

Select from a wide range of hardware, choose your device configuration, and relax.

With Workwize, you can goodbye to shipping costs, high lead times, customs clearance and other logistical hurdles. 

Here’s how:

• Buy or rent a broad range of equipment directly within the Workwize platform from local vendors worldwide. (We also collaborate with your preferred local vendors directly)

• Get global delivery of IT equipment and peripherals within 5-7 business days anywhere—remote employees’ homes, your HQ, remote office, or one of our global warehouses.

• Also, get starter kits or welcome packages with company logos and let employees pick from a wide range of gear beyond IT equipment

• Stay on top of all your assets with accurate and timely updates on their location with a track-and-trace link and 100% visibility 

IT Equipment Deployment

• All your equipment is up and running out of the box as it's preconfigured and MDM-enrolled

• Ask for your equipment to be set up exactly how you’d like with the necessary software and user permissions

• Also gain access to a centralized view of all equipment and get replacements for faulty or broken equipment with ease

IT Equipment Management

With all your equipment set up and running, use Workwize to manage them throughout their lifecycle.

• Know all about your asset, like who has what and its current and depreciating value (as well as whether it is second-hand or brand new)

• Provide employees a self-service portal to request items, repairs, and maintenance, as well as a chatbot for quick assistance

• Integrate with your HR or directory system to simplify employee transitions. We automatically secure accounts when an employee leaves, arrange a device pickup, and ensure the device is wiped clean upon departure

Zero-touch IT Equipment Retrieval

Experience hassle-free, seamless retrievals from your global workforce, free from the usual complexities. Workwize manages all employee communication, logistics, and packaging to ensure your assets are returned safely and securely. When employees depart, or assets reach the end of their lifecycle, request a retrieval with one click.

IT Equipment Disposal

Workwize assists in the eco-friendly disposal or donation of end-of-life assets per local regulations, providing a certificate of data destruction to ensure compliance. Workwize integrates seamlessly with communication tools like Slack and your existing HRIS software.

The device as a service model has its own set of limitations (more on this later). 

Workwize is built to do away with these limitations. See how 👇

Why is DaaS Necessary: The Benefits of DaaS

Every workplace needs intelligent, fast, and responsive devices to be productive. However, not all businesses have the budget to buy devices.

Device-as-a-service solutions bundle device lifecycle services into a predictable monthly subscription per device, massively reducing the complexity and high procurement, deployment, and support costs. 

Here’s a look at all of the benefits DaaS promises:

Reduces the burden of IT teams

DaaS saves your IT team from drowning in a sea of hardware headaches and reduces IT workload by 16%. DaaS providers often handle the entire device lifecycle–from initial setup and deployment to maintenance and eventual disposal. They preload necessary software, configure security settings, and make devices ready to use upon delivery. 

The responsibility for applying software updates and security patches also shifts to the provider–no longer playing whack-a-mole with update notifications. Most DaaS contracts include technical support and maintenance services. If a device malfunctions, the provider handles repairs or replacements. 

IT teams no longer need to configure specific images for every device model and every role. DaaS keeps the base OS the same, with applications, policies, and settings layered on top.

IT teams can tackle more complex issues with all that taken care of. 

Offers more cost savings

The cost savings from the DaaS model arise from transitioning from a Capital Expenditure (CapEx) to an Operating Expenditure (OpEx) model. DaaS eliminates the need for significant initial investments in technology infrastructure. Instead of purchasing devices outright (CapEx), businesses subscribe to them as a service (OpEx), paying a predictable monthly fee. This reduces the financial burden on businesses, especially those with limited capital, like startups and SMBs.

Under the traditional model, asset refresh cycles and asset augmentation become challenging when multiple device types and models exist. In this model, you spend only about 30% on the physical hardware and the rest 70% on its management for every $100 spent.

On the other hand, DaaS offers a flexible financing model with no upfront costs. The monthly per-user fee covers everything—from the device you give to an employee to maintenance, hardware repairs, and ongoing service. 

You can also analyze how employees use their equipment and identify the right device for each role so you don’t overspend on features they don’t need.

Offers more flexibility and device choices

With DaaS, businesses that need to adapt quickly to changing technological needs and workforce requirements are no longer held back by complex IT processes and cost or operational bottlenecks. And since the subscription is usually set on a per-device basis, companies can scale their device needs up or down at any time. 

You also benefit from a much more extensive selection of devices suited for unique needs. Intel’s DaaS offerings, for instance, include Intel vPro® devices and Intel® Evo™ laptops for both performance and mobility. 

Read More: IT Preventive Maintenance: Guide, Tools, and Checklist

Helps with better productivity

For any work environment–remote, hybrid, or in-office—the DaaS model offers advantages like a simplified onboarding process and faster refresh cycles, leading to higher productivity. 

New hires usually get immediate access to ready-to-use hardware, staged and configured with all necessary bundled accessories, policies, and settings. 

In the rare event that some hardware acts up, DaaS solutions replace or repair your devices so your employees can continue with minimum disruption. Since apps and other data are hosted on the cloud, security updates and patches are deployed without delaying end users, and cloud-based endpoint management platforms like Microsoft Intune run continuously to reduce downtimes.

Moreover, DaaS ensures that your employees always have the newest and most capable devices to do their work correctly. Slow, outdated devices significantly impact productivity; Intel pointed out that businesses lose more than a week every year just because of obsolete technology. With an expanded device choice, your employees can be kitted out for the best possible configurations for their role that maximize output.

Opens you up to scalability

A survey found that 72% of IT leaders plan to increase their investment in DaaS over the next few years, primarily due to its scaling capacity and customizability. 

Unlike traditional purchasing models, where companies often face limitations in hardware and software choices, DaaS allows businesses to select the exact devices, configurations, and software packages that best align with their operational requirements and scale up or down at any given time.

When you consider it, DaaS benefits not just companies but any organization where hardware is required. Rednet, for instance, a system integrator, onboarded 7,500 Intel vPro-powered devices to 170 schools across Frankfurt, Germany. In another case, the Indiana Office of Technology turned to the DaaS model, activating 18,000 devices within just a month.

The scalability you get from DaaS also allows you to scale your data storage and processing power up or down based on demand. 

The Challenges with DaaS

Although 95% of DaaS adopters have been satisfied with their enrollment, it would be ignorant on our part not to talk about the limitations this approach inherently has. 

Vendor lock-in

When you rely on a single DaaS provider, which is often the case, you also suffer from vendor lock-in. It is the situation where you become dependent on your provider’s services and infrastructure. The standardized solutions that your supplier provides might also limit customizability if you have high-specificity use cases. You might also be bound with contracts that limit upgradability and impose heavy fines on early terminations.

This dependency often limits your flexibility to switch providers or negotiate better terms, as transitioning to another provider involves significant costs and operational disruptions. Not just that, vendor lock-in stifles innovation and adaptability, as you’ll be held back by your provider’s tech and service offerings. 

Higher overall cost

DaaS almost always packs a higher Total Cost of Ownership (TCO) as the subscriptions quickly add up to the overall cost of the devices and beyond. Sometimes, a year's total money spent on DaaS-acquired devices can cost organizations far more than other options.

Thus, doing a cost-benefit and ROI analysis always makes sense before opting for the models. Charges also depend on your provider, and you must do your research to pick the ideal service provider.

Complex logistics

Managing the logistics of device procurement, deployment, and maintenance is no small feat, especially for organizations with a global presence. Many companies struggle with centralized device ordering and managing global IT assets. 

Any delays in device fulfillment will also disrupt operations, mainly if your organization relies heavily on external providers for device management. And since you have no access to the hardware before installation, customizing devices and installing company-specific software takes many extra steps.

Dependency on external providers

DaaS involves outsourcing critical device management functions like system-level monitoring and OS patches to third-party providers. This dependency might lead to challenges if the provider experiences downtime or service issues, affecting your organization's operations.

As the service provider handles these functions, you’ll also probably have limited control over the devices and how they are managed. This is not necessarily bad, as most IT managers experience resource drain due to device management, a condition that DaaS eliminates.

Security issues

The previous point brings us to data privacy concerns; with devices managed externally, there is a potential risk to privacy and security, amplified by the frequent rotation of devices.

The lack of direct control over devices can lead to security risks. Disparate devices and poor inventory management might create security challenges, such as inconsistent application of security patches and updates. 

And certain industries with strict regulatory requirements find it challenging to comply with data protection regulations when using DaaS, as an external entity manages the devices and data. As devices are regularly replaced or upgraded, strict data security protocols become necessary.

Manage Device Lifecycle Easily With Workwize

DaaS is a valuable model for SMBs looking to equip their workforce with quality hardware. It also makes sense for organizations where cash is mission-critical. However, it’s not perfect and has its downsides. 

Workwize takes DaaS to the next level by eliminating its challenges. We offer transparent pricing and reliable service and make it easier to provide teams with best-in-class equipment within just days.

Book a Workwize Demo now and see how it meets your needs.