How to keep your tech up to date on a tight budget with DaaS

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How to keep your tech up to date on a tight budget with DaaS
As organisations continue to navigate this trying period, they are looking for ways to stretch their budgets.
Photo by Ashkan Forouzani on Unsplash

Desktop as a Service.

Today’s business environment is more challenging than ever – due to the pandemic, businesses need to operate on leaner budgets with employees working from anywhere, whether than be in the office, at home, or anywhere in between.

For many businesses, rapidly evolving technology and devices can become a financial burden. Legacy technology not only adds to cost but can also be a serious security risk once updates become obsolete. The COVID-19 enforced lockdowns of 2020 accelerated this trend, with many workers in Australia and New Zealand having to set up cost-effective, secure remote working spaces for themselves.

One technology solution that has been gaining traction even prior to the COVID-19 pandemic is Device as a Service (DaaS). By using a DaaS model, organisations can lower the upfront investment that is usually associated with technology purchases, allowing them the flexibility to reallocate and extend their financial resources.

A subscription-based hardware service also means organisations are more likely to be using the newest technology. DaaS accelerates the hardware refresh cycle, ensuring the workforce isn’t impacted by aging machines and legacy technology.

Historically, DaaS was often considered a mere cost-saving measure for companies. However, COVID-19 and the associated lockdowns brought a new requirement – businesses needed to keep working, but with staff at home and using a range of devices, DaaS provided a secure and scalable solution.

As-a-service models have increased in popularity during the past year, including DaaS. This is due in part to the “flex up, flex down” capability of the offering, which proved essential during the COVID lockdowns of last year.

Flexing up or down means that a company can increase or reduce the number of devices, along with related services, during the term of their DaaS agreement with their vendor. They have found that there is an imperative need to minimise spend and maintain consistent output during either high or low periods of activity. A DaaS solution, with its “flex up, flex down” capability provides this.

Perhaps the strongest benefit when embracing a DaaS model is the ability to make it an operating cost (OPEX) rather than a capital expenditure (CAPEX). Traditionally, when companies had to purchase new devices as part of a device research, it would lead to significant up-front CAPEX costs and was largely inflexible.

With DaaS, organisations pay a per-user subscription fee each month. This means that the cost of new equipment will not have severe impact on budgets. It also ensures capital isn’t tied up and can be used for other projects.

This means that, while valuable to many different-sized enterprises, DaaS can also be valuable to mid-sized and emerging businesses when budgeting. This is because when the time comes for a device refresh, there is no need for another major capital investment, or for an organisation to sell or dispose of old devices – often, devices can be refreshed by the vendor with little to no waste.

As organisations continue to navigate this trying period, they are looking for ways to stretch their budgets so they can acquire the necessary IT resources to serve their employees. Of course, employees need more than devices. They also need the right software and IT services to support, enhance and secure their daily experience. A Device as a Service solution can provide the means to support and grow a company’s technology offerings, while also keeping a lid on spending.

Daniel Fields is Executive Director of Services Sales and Marketing, Asia Pacific at Lenovo.

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