Hardware-as-a-Service (HaaS) offers small businesses a flexible, affordable way to ensure that IT infrastructure is kept up-to-date.

Hardware-as-a-Service allows businesses to spread the cost of the equipment over the course of it’s useful life. This means no large capital outlay or ownership of fast deprecating equipment.

The business gets up-to-date, quality equipment for a simple monthly payment.

What is Hardware-As-A-Service?

Office space equipped with new IT equipment showing Hardware-as-a-Service

The basic concept of Hardware-as-a-Service has been around for years. Think about when your broadband provider sends a new, updated router to replace an old one. You’ve paid for the router as part of your monthly bill. It’s the same with your mobile phone operator, the monthly contract includes the purchase of the phone.

Whilst comparable to leasing, Hardware-as-a-Service has key differences and some added advantages.

As well as the equipment itself HaaS, includes all of the support and maintenance over the agreed term. The solution will be installed by our engineers with installation costs included in the monthly payment.

Under a normal lease arrangement you might be covered under a warranty, however any issue means shipping a unit back to the manufacturer. This is inconvenient in the case of a desktop PC or laptop, and practically impossible with a server! With Your IT’s support issues will be resolved much more quickly.

At the end of a standard leasing agreement you’ll be faced with various options. These include keeping the equipment for a final payment, continuing to lease the same equipment or sending it back to the lease company. With Your IT’s Hardware-As-A-Service solution we’ll work with you to decide the best option. In most cases this will mean we upgrade everything to brand new, up-to-date equipment. You simply continue to pay the same fee. This means no more worries about ageing equipment or finding capital for new machines.

You can also add to your HaaS agreement. This means as your business grows your infrastructure can grow with you and still with no large capital outlay.

The Advantages of Hardware-As-A-Service

Firstly, Hardware-As-A-Service is 100% tax deductible. In many cases the tax saved is more than the interest!

In addition to the tax advantages HaaS preserves your cash reserves and protects any other lines of credit, for example bank overdrafts, it may even improve the businesses credit rating.

HaaS transforms up-front capital expenditure into an ongoing operating expense. This aids budgeting and allows more accurate cost/value comparisons e.g. “Is this worth £X/month to my business.”

You can also more accurately judge the cost of taking on a new employee. You’ll know their monthly wage, pension, tax and employers NI, but now you’ll also know exactly how much it costs for the IT they need to work.

You’ll also have access to the latest technology now, without having to wait. This can give you a competitive advantage over your rivals. Furthermore you may be able replace your leased items with newer technology within the term of the contract – without necessarily increasing your payments. You also know exactly how much the item will cost. As support and servicing is included the total ownership cost is capped.

HaaS provides built in scalability. As your business grows and changes so do your technology needs. With HasS you can add new infrastructure as you grow. Knowing exactly what the ongoing cost of the equipment will be.

Each HaaS solution is bespoke. The length of terms will be agreed based on the useful life of equipment. Rates take into account the business credit rating etc.

How Hardware-As-A-Service works

We’ll work with you to determine the required equipment. We’ll identify equipment that is at or beyond recommended end of life, anything that is displaying consistent issues or is no longer fit for purpose. Once we know what’s needed we’ll find the best possible price for the solution. We’ll look to standardise equipment, using your preferred manufacturers from the major brands such as Dell, HP and Lenovo.

When we have the price for the infrastructure we’ll present this to you. Generally, the costs of desktops and laptops will be spread over 3 years, with servers costed over 5. The price presented will include the support element, giving a single monthly cost.

Once the proposal has been accepted we’ll install the new infrastructure. We keep disruption to a minimum, carrying out work in the evenings and weekends where necessary. Again, there is no additional cost everything has been factored into the monthly price.

All equipment will be fully tested before ‘Go Live’ and you’ll see immediate improvements with the new equipment. We’ll monitor and maintain the equipment, keeping it in peak condition. If you have any issues you’ll have access to the Service Desk, along with all the other components of our Managed IT Support.

Monitoring, Maintaining and the End of the HaaS Agreement

Over the course of the HaaS agreement we’ll meet to ensure that the equipment continues to meet your needs. New equipment can be purchased at any time during the agreement. Then, toward the end of the agreement, we’ll discuss how you want to move forward.

Essentially we go back to stage 1. We’ll replace all of the equipment with the latest machines and a new agreement would be entered into. The cost should be similar to what you’re used to paying, unless significantly more or higher specification equipment is required.

Offer complete flexibility it is possible to purchase the equipment at the end of the agreement. Usually a single payment, equivalent to one months costs, will secure ownership. However, the solution most often taken is to replace the equipment with new. In this way HaaS ensures you have in place an IT refresh plan and that you’re never using old, slow equipment.

All types of IT hardware can be purchased in this way. Desktop PC’s, laptops, servers, monitors, printers even firewalls can be purchased using HaaS.

Finding Out More

Hardware-As-A-Service is suitable for most businesses looking to purchase hardware. Start-up and early stage businesses will find the reduced capital costs useful, whilst established businesses like the flexibility and convenience in replacing ageing equipment.

If you’d like to find out more about how a Hardware-As-A-Service solution might suit your business please complete a Contact form or call us 0115 822 0200 for a no obligation conversation.

Your IT partner with Grenke to offer Hardware-as-a-Service.

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