Hardware as a service definition
Hardware as a service is a business model where customers rent out physical IT infrastructure on a subscription. It includes computers, servers, networking equipment, or other hardware devices. It’s like software as a service, where users access software over the internet rather than buy and install it.
While HaaS offers many benefits, it’s not suitable for every organization. Some businesses prefer complete control over their hardware. Owning hardware outright also has long-term cost benefits.
Benefits of hardware as a service include:
Cost efficiency. Rather than spending big on hardware, businesses can spread out the cost over time with regular subscription payments.
Up-to-date technology. Providers often ensure that they provide the latest hardware. Businesses can stay updated with the latest technology without continually purchasing new equipment.
Maintenance and support. Providers help with maintenance and support. This reduces the IT burden on the business.
Scalability. It’s easier to scale up with HaaS, as businesses can adjust their subscription to get more hardware as needed.
Risk reduction. The HaaS provider assumes the risks associated with hardware failures. They can quickly replace malfunctioning equipment.
Potential tax benefits. In some jurisdictions, businesses can deduct the subscription costs as an operational expense.
Flexibility. Organizations can change their hardware configuration based on current needs.