Hardware-as-a-Service: 2025 Updated Guide

What is Hardware-as-a-Service (HaaS)?

Hardware-as-a-Service is a procurement model in which hardware is leased or rented from a manufacturer or MSP (managed service provider).

This subscription model is either:

• Usage-based (pay-as-you-go)

• Monthly or annual

• Telemetry-based

• Service or feature-based

• Lease-to-own (where a regular amount is paid until the hardware is owned)

The HaaS model alleviates the burden on businesses for upfront investments in hardware procurement and minimizes the complexity of IT asset management. Many MSPs offer services like remote administration, device management, and anti-malware tools, facilitating smooth and secure operation.

HaaS enables small to mid-size businesses to work on cutting-edge hardware cost-effectively.

It frees up IT resources to work on core operations like:

• Plan and implement IT strategies

• Evaluate new technologies

• Collaborate with other departments

How Does HaaS Work?

In a HaaS arrangement, the following processes are incorporated by MSPs:

Hardware Deployment

The service provider handles the setup and induction of hardware. 

It includes configuration, installation, testing, training, and documentation. The traditional and company-owned HaaS model uses continuous monitoring to eradicate data leakage or loss, shadow IT, and poor asset management.

Learn more: The Ultimate IT Hardware Deployment Guide For 2024

Maintenance

HaaS providers handle all maintenance responsibilities, saving you time and effort. They handle maintenance, repairs, and upgrades, which are included in the subscription fee.

Several MSPs also allow timely preventive maintenance to safeguard the hardware from failing prematurely. This increases uptime and reduces unforeseen downtimes. 

It is a significant savior since a single instance of downtime causes organizations to lose thousands of dollars. To be precise, large organizations claim more than $1 million in downtime.

Replacement and Upgrades

HaaS agreements often incorporate a technology refresh cycle, with hardware replaced every 2-3 years (depending on requirements). This ensures you can access modern and efficient hardware without dealing with outdated and depreciated equipment. The MSPs generally negotiate terms with you to prepare for this transition in advance without disrupting your team’s work schedule.

In case of device fallout, the MSP handles the complete cost and responsibility of replacement in an agile model within specified timeframes to avoid downtime. However, before physical replacement, the provider may attempt remote diagnostics to restore the device so that even minute downtimes do not occur.

The HaaS model’s replacement capability is a huge liberator; we’ll give one example of why. 

According to the US government accountability office, 80% of its $100 billion in annual IT spending goes into maintaining old equipment. We know you don’t want to be stuck in such a situation.

Service Level Agreements (SLAs)

Contracts guarantee performance and response times for hardware servicing. An SLA tied to a HaaS provider specifies the level of support and maintenance they provide.

This encompasses proactive monitoring, issue troubleshooting and replacement of failed or faulty hardware or parts. 

Some key clauses in HaaS SLAs are:

• A certain percentage is guaranteed as overall uptime (usually 99.9%)

• The provider needs to specify the turnaround time in case of fallouts or failure

• Maintenance and technology refresh cycles need to be specified

• How well-integrated the support and service regime are going to be (during business hours or 24*7)

• How to measure the hardware performance like downtime limit and promised uptime

• Are the security standards like GDPR, HIPAA and PCI DSS met

• How data is backed up in case of hardware failure

• Are there service credits in case of non-compliance

Benefits of Hardware-as-a-Service

Cost-Effective

With HaaS, the outright expenditure is lowered by adopting the Opex model. The purchases made by Opex are more likely to be approved by decision-makers than Capex. This is preferred as hardware rental is accountable for only a year (which may be recurring) as compared to high upfront Capex costs.

This reduces financial strain on the organization, letting them invest in other critical areas.

Prompt Maintenance

IT teams remotely access and investigate hardware to monitor device health. If there are any issues, they are notified and escalate the ticket to the service provider. The MSP or manufacturer is given direct access to the device, where they troubleshoot the condition and take remediation measures.

This may include physical maintenance (hardware repairs) or updating or fixing software glitches.

Scalability as Per Usage Capacity

Depending on the business model, you can quickly scale the procured hardware up or down without major investments. This is preferable in scenes with ad hoc requirements based on projects or for growing companies. HaaS can also be employed by larger companies expanding their team size or opening new development centers. This flexibility ensures optimal resource utilization and cost efficiency.

Lifecycle Management

MSPs or manufacturers manage the entire hardware lifecycle. Providers tend to initial procurement, deployment and installation, utilization and optimization, maintenance and support, and decommissioning and disposal.

Minimized Downtime

As there is rapid response and replacement, operational and service disruptions are reduced. HaaS providers often guarantee high availability and uptime, minimizing the risk of hardware failure and other associated business fallouts.

Financial Predictability

Since a subscription model is implemented in HaaS, it is a foreseen cost in budgeting. The finance team knows a specific cost must be allocated based on the HaaS subscription model, making planning efficient with informed decisions.

Expert Support

HaaS providers offer expert guidance on hardware upgrades and readily pinpoint issues in case of fallout. This extensive support elevates your business operations by quickly collaborating with MSPs. Their expert technicians and engineers have in-depth knowledge of hardware and its configuration, allowing for quick troubleshooting and implementing best practices.

MSPs offer hardware training in complex scenarios so your team can use the specialized equipment to its full potential and handle minor issues independently.

Risk Reduction

The MSP reduces the risk of hardware investment setbacks and technological obsolescence. Taking preemptive measures positions you to counteract and mitigate potential fallouts. Its agile model allows you to adapt quickly to changing business needs and be equipped to handle environmental and operational disasters. This offers quick resilience to bounce back to the best possible functional state.

Enhanced Security

Regularly updated hardware ensures robust security measures are in place to combat emerging threats. HaaS providers often include advanced security features in their hardware offerings, protecting sensitive data and maintaining compliance with industry standards. It helps you stay afloat while adhering to industry standards like GDPR, HIPAA, PCI DSS, etc.

Challenges of Hardware-as-a-Service

While the HaaS setup poses many benefits, it has its share of challenges.

Initial Setup Complexity

Initial cost and hardware deployment to your site can be cumbersome. It requires a comprehensive assessment of your ecosystem, team size and custom requirements. This, in turn, can lead to complex planning (which may sometimes be erroneous) and needs multiple approvals.

Selecting the right device for your IT environment, such as computers, laptops, servers, and networking equipment, can be challenging and time-consuming. The complexity increases if data migration from a legacy system to new hardware is needed. 

Vendor Management and Reliance

Depending heavily on a vendor for essential hardware services can present challenges if the provider fails to meet expectations. Also, spending too long with an inefficient MSP or manufacturer can lead to vendor lock-in, threatening your operational efficiency.

Data Privacy Concerns

Sharing data and relying on third-party hardware can raise security and privacy issues. For instance, as discussed in several cases, data migration from legacy systems to newer hardware is needed. Failure to adhere to proper data security guidelines can be catastrophic. Losing medical data under HIPAA guidelines or financial information under PCI DSS can lead to an utter crisis.

Also, since the hardware is constantly monitored remotely, every detail by your team is vulnerable to breach. It is imperative that asserted data security clauses are mentioned during your service contract period with MSP or manufacturer for hardware procurement.

Increased Cost Over Time

Even though the HaaS model saves costs with its Opex model, it may be hefty in the long run. Subscription fees might accumulate and become more costly over time than outright purchases. This may prove the Capex model more admirable in the long run with tax benefits. 

Thus, evaluating the TCO (total cost of ownership) and adopting a lease-to-own model if the contract lasts longer is advisable. With this model, you can save surmountable expenditures and do not need to do repetitive network setup and hardware shuffling.

Compatibility Issues

Integrating leased hardware with existing systems can sometimes be problematic. This requires an intensive assessment of your company’s landscape. MSPs must address your ecosystem's strengths and pain points and strategize accordingly. It can be a vigorous process, as the MSP may miss out on potential elements even with intensive evaluation.

This may pose compatibility issues while the setup becomes operational and requires intermediate remediations.

What Are Some Leading HaaS Providers?

Some examples of Hardware-as-a-Service (HaaS) providers include:

Microsoft

Microsoft offers DaaS (device-as-a-service) with its Surface laptops, tablets, and other Windows hardware. It also comes prominently with Windows 10/11, Microsoft 365, and enterprise-grade security tools.

Hewlett Packard

Hewlett Packard offers HaaS through its HPE Greenake platform. It adheres to a pay-as-you-go model that turns Capex into Opex. This model provides financial flexibility for on-premises systems and lowers the risk of overprovisioning (allocating more computing resources than needed).

Dell

Dell offers HaaS via Dell PCaaS (PC-as-a-Service) and Dell APEX. Dell PCaaS offers PCs and software, while APEX leases infrastructure solutions for commuting, networking, storage, and data protection. Both PCaaS and APEX offer a pay–as–you–go model. 

HaaS vs. Workwize - How They Compare?

Finally, you can sigh in relief and leave your hardware buying, renting, and leasing to Workwize; rest assured!

HaaS offers a modern solution to hardware management, shifting from Capex to Opex, ensuring continual upgrades, and providing expert maintenance. However, Workwize pushes the boundaries further with its complete IT hardware life cycle automation, allowing for increased efficiency, compliance, and cost-effectiveness.

Workwize, in turn, outperforms HaaS by offering advanced automation, seamless deployment and comprehensive management tools. It reduces your burden for procurement, deployment, retrieval, and disposition of IT assets for your team. 

Although HaaS is a powerful procurement model, it loses its edge to Workwize, whose automation does all the polishing and wonders.