Hardware as a Service (HaaS)

Hardware as a Service (HaaS)

Hardware-as-a-Service (HaaS) is a sales model in which the client pays a monthly fee to use hardware that belongs to a managed services provider (MSP). A service level agreement (SLA) outlines the specific terms of the arrangement between the two parties, covering the scope of work, the responsibilities of each party, and time standards for each service.

Why It Matters to your customers

An MSP’s clients that transitioned to Software-as-a-Service (SaaS) may be growing more accustomed to paying a monthly fee for technology, rather than owning it. The as-a-Service model eliminates a large, upfront investment, as well as unexpected repair costs, and replaces them with budget-friendly and predictable monthly fees. It also eliminates the problem of hanging onto aging technology—returning the hardware or upgrading at the end of the contract will be conditions of the SLA.

Hardware-as-a-Service also eliminates the burden for the end users of making hardware purchases and worries over failures and downtime. Those are the responsibilities of the MSP.

Why Hardware as a Service (HaaS) is an Opportunity

HaaS requires an upfront investment, but planning for the term of the contract and pricing HaaS correctly will pay off the equipment and result in recurring revenue for your business. Bundling HaaS with SaaS offerings and managed services can increase recurring revenue even more.

Hardware-as-a-Service has other advantages for MSPs. It gives you more control over your client’s IT environment, enabling you to standardize hardware, making it easier for you to maintain and service. With HaaS, you will no longer have to struggle to keep outdated technology running on your client’s network.

Providing a turnkey Hardware- as-a-Service solution can also help retain customers. When you are the client’s total solutions provider, you have more opportunity to interact and build loyalty, and by managing their entire IT environment, your services become integral to their business operations.

Hardware as a Service (HaaS) Trends & Case Studies

Transitioning from Break-Fix to Managed Services: Step 5 — Sales Hiring, Compensation and Training

Even if you’ve done everything right up to this point, there’s one obstacle that if...

Transitioning from Break-Fix to Managed Services: Step 4 — Seven Surefire Marketing Tips

Here are 7 tips garnered from top MSPs that will help optimize your marketing strategy.

Transitioning from Break-Fix to Managed Services: Step 3 — Operational Planning

Follow this advice concerning your SLAs, contract terms, payment terms, and details related to your service delivery and support.

Transitioning from Break-Fix to Managed Services: Step 2 — Determining Which Services to Start Selling

Here are the initial core IT services VARs and MSPs can offer, which serve as a foundation and springboard for dozens of other add-on services.

Transitioning from Break-Fix to Managed Services: Step 1 — Financial Planning

In part 1 of our series on transitioning from break-fix to managed services, we discuss the financial challenges you'll face, including cash flow, KPIs, initial investments, and more.

Welcome to XaaS Journal – Your B2B Recurring Revenue Resource

A free B2B publication designed to educate and empower VARs, MSPs and other channel IT professionals about the best opportunities for building successful as-a-service businesses.

Related Services

General IT Services

Ideal Verticals

Relevant Associations