Hardware-as-a-Service (HaaS) is a procurement model that is similar to leasing or licensing. It refers to managed services where computer network equipment is leased through a provider. In other words, users lease provider’s tech assets rather than purchase them.
In the HaaS model, hardware belongs to a vendor or Managed Service Provider (MSP). It is procured and tested at the MSP’s site, prior to installation at a customer’s site. Service Level Agreement defines the responsibilities of both MSP and the customer.
Leasing computing equipment is typically preferred by organizations with limited capital or businesses in need of equipment that must be upgraded often enough.There are 2 ways the cost for the leased hardware can be distributed:
- a monthly fee for using the hardware;
- a cost for the installation, monitoring, and maintenance of the hardware is built into the MSP’s fee structure for managed services package.
Note: Leasing is often 100% tax-deductible as an operational expense (179 IRS Tax Code.)
Process of buying computers may not be complicated, but the buyout approach is typically not suggested when thinking of best overall value for the technology solution. Leasing with assistance of your IT Consultant and Tech Services provider is easier than going at it by yourself. Your trusted adviser should be able to help you identify your needs and match you with best technology needs plan possible, making the leasing process, the ongoing maintenance and support, and disposal of outdated technology much easier.
Consider a strong end-of-life policy with possibility to extend terms for the lease. Ability to pull equipment back to MSP for a data offload process and a data backup services and migration (if necessary) to prepare for the return is highly recommended. When hardware reaches its end-of-life, shows signs of wear and tear or breaks down, the MSP should be responsible for decommissioning, responsibly recycling and replacing needed technology.The terms of the SLA should dictate if clearing the data, destroying hard drives and ensuring that old equipment has been recycled legally by the MSP. Proper computer disposal or recycling is critical for the environment and for correct asset disposal. (If you are looking to recycle old computers in New Jersey by yourself, may we recommend Where to safely Recycle Computers and Electronic Waste in New Jersey resource).
Leasing computers and other network hardware is a great way for SMBs to provide their staff with modern hardware in a cost-effective way.