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Hardware as a Service Market – Trends Strikes Growth by Adoption of New IT Solution

By July 17, 2019 No Comments
HaaS-Hardware-as a-service

Information Technology is that branch of technology that deals with the usage of computers in order to store, retrieve and send information. The tremendous advancement that the technological world has seen in the past few years has resulted in remarkable growth in the way information is now being used by the companies.

One of the newest additions to this ongoing process of growth is HaaS. HaaS refers to Hardware as a Service. It is a new transformation in the business model that is being initiated to shift the maintenance responsibility from the buyer to the seller or vendor.

According to HaaS, the companies will charge for the hardware services that they will provide and not the hardware itself. After the end of the agreed time period, and once the customer stops paying for the service, the company will take the hardware back. The purpose of such a business model is to bring down the loss that is created by these hardware as a retiring asset.

What is the need of HaaS? 

The damaging aspect of using any hardware is a phenomenon that is experienced by everyone. For example, hardware can become useless once an upgraded version of it comes into the market in a newer product. The customer is then obliged to invest more money in the newer product while the older one remains at home as an obsolete.

Another reason is that traditionally, once a customer has bought hardware, apart from the warranty period, most companies charge for any repair that has to be done. This leads to the customer being liable for the maintenance of the hardware as there is always the possibility of the hardware to stop working even though the customer paid the full price.

Therefore, in order to address the woes of the customers, this new initiation of Hardware as a Service has taken place. The companies will sell the hardware as a package that will include:

  • Hardware
  • Software
  • Maintenance
  • Installation

All the above services will be provided at a fixed rate, for example monthly or yearly, based upon the hardware being sold. It is believed that this will lead to the customer getting the most out of their hardware products for the price they pay.

Further,  HaaS has the ability to provide the following advantages: 

  • The world is witnessing a new trend in the economical aspect. This is referred to as “minimalism”. This trend focuses on the idea of decluttering the surrounding. It means that the new agenda of the economic policies should be to encourage people to not hoard the things. It is based on the aspect of a shared economy, wherein people will not be allowed to just buy things as they please, but rather have a sense of responsibility towards the usage of it. Wherever possible they will be encouraged to share the hardware and enjoy the services together rather than having individual hardware.

Such a trend coincides with what HaaS is about. HaaS has the potential to encourage minimalism among people. For example, instead of buying a car, people can invest in the service it provides for the amount of period it is being used. After that, the car will be returned to the provider.

Moreover, it can also lead to a reduction in the operating expenses incurred by buyers due to the shared usage.

  • When a customer buys a product he or she pays a hefty price with the risk of being liable for any damage to the value that may occur in the future. This shows that the cost/value comparison might not always be fair and justified towards the buyer.

With the introduction of a factor like HaaS, since the buyer will only be paying for the service as long as the hardware is working up-to-date the cost/value comparison will automatically become more accurate.

  • Once the seller is accustomed to the responsibility of the maintenance of the product, he or she will have the incentive to repair or upgrade the product immediately.

The reason behind such a quick response is that the seller will face the risk of losing the customer and the payment if the product is not up-to-date and working well.

  • It can be argued that HaaS may negatively impact the sellers. However, it should also be noted that such a connection between the seller and the buyer can lead to better relations between the two.

If the seller is providing an honest and transparent service to the customer, the customer will easily turn into a loyal customer. Furthermore, it may even lead to indirect promotion by the customers due to positive user-generated content, thereby increasing the sales of the product by manifolds.

  • The relations between the seller and the buyer will grow because the former will have to pay attention to the customer needs and understanding. While manufacturing and selling the product, the seller will keep in mind exactly what the buyer needs and desires.

Conclusion 

Information Technology is a branch of technology that is constantly evolving to provide better services to people all over the world. However, many such IT companies face the risk of depreciating assets. They have to constantly make sure that their technological devices are functioning properly and are upgraded as per the needs. This leads to an increase in the cost of maintaining the products and constant stress due to responsibility.

Hardware as a Service has the potential to help the IT sector to decrease such liability and stress as the maintenance responsibilities will be transferred to the provider of the technology only. Such a trend is leading to manifold growth in the market and making the future brighter for the people.

Contact us today to learn about Bleuwire™  services and solutions in how we can help your business.

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