Hardware as a Service: A Guide for Small Businesses 2024

by Jon Lober | NOC Technology

What is Hardware as a Service?

Plain and simple, hardware as a service (or HaaS) is a business technology lease. So why should a business like yours consider it? Keep reading!

Examples of Hardware as a Service

While HaaS contracts vary substantially depending on the needs of the business and the capabilities of the provider, businesses may look for leases on laptop and desktop computers, software licenses, servers, VoIP phone systems, and networks printers. As with other types of leases, a benefit of leasing your technology is that someone else is responsible for upkeep and repairs.

Hardware as a Service (HaaS) explained by an IT company for real (not techhie) people

Office technology can enhance or hinder productivity. When properly maintained, the right tech enables a small business to punch far above its weight class, while outdated or inadequate hardware or software can tie an arm behind its back.

Hardware as a service is strengthening many small businesses, but it may not make sense for everyone. As a HaaS provider, we want to walk you through the factors you should consider before moving forward with a contract.

HaaS Decision Guide: 2024

In simple terms, hardware as a service (or HaaS) is a business technology lease in which a tech provider supplies the client business with the IT hardware and associated maintenance they need to operate. The contracts may be offered by a specialized provider as a standalone service or by a managed service provider (MSP) that bundles the lease with a variety of other IT services: internet, cybersecurity, software, helpdesk support, VoIP, and more.

Learn more about HaaS

Although the HaaS model makes great sense for many businesses, it may not always be the best solution for everyone. Here are a few key factors that businesses should consider in 2024 as they weigh the advantages and disadvantages of leasing versus buying laptops, desktops, VoIP phones, servers, printers and more.

	Buy	Lease (HaaS)
Business Size	Fewer than five employees.	More than five employees.
Access to Capital	Abundant.	Limited.
Average Age of Current Tech	Less than two years.	Two years or older.
In-house IT Support	Robust internal team.	None or overextended internal team.
Accounting Preferences	Capital expenses.	Operational expenses.
Management Style	Hands-on. Maximum control.	Focus on strengths.
Extent of Tech Needed	Fewer than ten devices.	Ten or more devices.

1. Current hardware age.

Businesses that have recently updated the majority of their IT hardware will benefit from waiting a couple of years before considering a HaaS agreement. On the flip side, businesses with a significant amount of aging tech can avoid a costly hit to their bank accounts by leasing their next round of computers, servers, printers, VoIP phones, and more.
2. Access to capital.

Businesses that operate on thin margins can preserve their spending power through leases. HaaS leases completely avoid the large outlays that impact business savings or loan limits. Businesses that operate with healthy reserves and fluid accounts may not prefer to use their capital resources and maintain a slimmer operational budget.
3. Business size.

Hardware as a service offers an incredible opportunity for most small businesses to outsource a significant drain on capital and management time. Many SMB managers already have to wear multiple hats, and most of them are ready to take off the one says “Default IT Person” on it.
4. Capacity of in-house IT support and policy.

Businesses with a robust internal IT team can usually handle their own hardware needs, especially those that have created and adhere to an IT lifecycle policy. However, internal IT teams that are stretched thin, might benefit from a HaaS agreement, no matter how capable they are, and may even benefit a co-managed solution with an MSP. Businesses with zero internal IT support will almost always benefit from HaaS—either as a standalone agreement or as part of a full-service IT contract with an MSP.
5. Accounting preferences.

Some businesses are perfectly comfortable working with depreciation schedule, capital outlays, and planning for large purchases. Others prefer to minimize irregular expenses and convert as many capital expenses to operational expenses as possible. HaaS allows businesses to make this decision. Those that prefer a single, reliable number month after month will probably benefit from HaaS.
6. Corporate culture and management style.

Although not everyone loves to be involved in every little detail of the business, some managers love to roll up their sleeves and get into the weeds. Those that enjoy such work, or prefer to have the greatest degree of control possible over their resources, will not find much appeal in HaaS. However, companies and managers that strive to focus on their strengths and outsource secondary concerns will find huge benefit in a tech lease.
7. Extent of tech needed.

If a business only needs two or three laptops, it will probably not even consider renting or leasing them. However, managers at businesses with a meaningful quantity and diversity of hardware (printers, phones, computers, servers, etc) often feel overwhelmed at the end of every year when they begin to budget what their employees need to purchase or replace.

If you are ready for some hard numbers on what it might cost to implement in your business, request a quote with NOC! We are an experienced full-service MSP that offers HaaS and other managed IT services in St. Louis, throughout Missouri, and the entire Midwest.

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