Weighing the Pros and Cons of Hardware as a Service (HaaS)

A time existed when there was only one way to procure hardware. You had to buy it. Now you have another choice; you can get computer equipment through a subscription. This is called Hardware as a Service (HaaS). It’s an option to consider that may help you reduce capital expenses and ensure that computer hardware doesn’t become a weak link in your cybersecurity strategy.  

📖Related Resource: What Is Hardware as a Service (HaaS)?

HaaS works similar to how Software as a Service (SaaS) companies sell software and computing resources. When you subscribe to software, you’re purchasing access to the application. With HaaS, you’re also purchasing access, this time to hardware such as computers, network switches, firewalls, and other equipment.  

HaaS is poised to transform hardware procurement just as SaaS played a major role in the shift from on-premises data centers to cloud computing. However, while HaaS has the potential to influence an organization’s performance, competitiveness, and financial health, it’s not a be-all and end-all solution for everyone.   

Some organizations can go all-in with HaaS; some can utilize HaaS for a portion of their computing needs; and for others it might not be the right option at all. We’ve put together some pros and cons of HaaS to help you consider if your unique situation is right for this model.  

• Pros of Hardware as a Service (HaaS)
• Cons of Hardware as a Service (HaaS)
• Making the Case for Hardware as a Service (HaaS) 

Pros of Hardware as a Service (HaaS)

1. Simplify Hardware Updates  

HaaS minimizes your involvement with the hardware procurement and disposal process. Once you’ve determined your equipment needs, the HaaS provider acquires and deploys the hardware for you. They take care of software and operating system licensing, and attend to any warranty issues if they arise. When the subscription term is up, you just exchange the old equipment for new, refreshing your hardware without needing to pay anymore for cyclic capital investments in computers. By removing the old hardware, the provider takes hardware disposal or resale off your plate.  

2. Strengthen Security and Compliance  

When you use cloud applications, you don’t have to worry about security updates and patching. Any responsibility – whether yours or your MSP’s - is taken out of your hands. The same idea is true with HaaS. If you own your computers, even if a good MSP is managing them, you still risk lowering your security standards if you decide to keep hardware for a long time or decline certain security tools and services. 

With HaaS, the decision to introduce security risks is taken out of your hands. The computers are 100% maintained and secured by the provider. They will ensure that your systems are equipped with the latest protections against evolving threats. Security updates are proactively managed by the provider, removing the burden of manually maintaining any computers you own and reducing the risk of security vulnerabilities associated with aging hardware. 

By entrusting hardware management to HaaS providers, organizations can benefit from enhanced security measures and simplified compliance. HaaS solutions are designed with robust security protocols to meet regulatory standards. With HaaS, cybersecurity becomes a proactive and integrated component of your IT strategy, rather than a reactive concern. 

3. Scalability  

When you need to scale operations up or down, HaaS makes it easy to adapt to changing equipment needs without a scramble or financial penalty. For example, if your organization experiences employee turnover, HaaS allows you to reallocate or scale down computers without incurring additional costs or leaving hardware unused. Conversely, adding new employees is seamless with HaaS, as you can simply increase the number of subscribed computers with a per-user fee instead of needing unbudgeted capital expense dollars to purchase new ones. The scalability benefits of HaaS enable organizations to optimize resources and support growth initiatives more efficiently. 

4. Predictable Cost Structure  

HaaS offers a consistent hardware cost structure with fixed monthly fees, streamlining budgeting and financial planning processes. This predictability eliminates the uncertainty of unplanned capital hardware expenses inherent in traditional procurement models, enabling organizations to allocate their budget more efficiently and avoid unexpected financial burdens. 

5. Access to the Latest Technology  

With HaaS, organizations can guarantee access to state-of-the-art hardware without significant upfront expenses. This ensures seamless compatibility with a broad spectrum of modern software applications that are essential for expediting tasks, streamlining workflows, and maintaining high-performing IT systems. By remaining current with technology through HaaS, businesses can achieve a competitive edge through enhanced efficiency, cost savings, and optimized performance. 

Cons of Hardware as a Service (HaaS) 

1. Limited Ownership

 HaaS might spook organizations because they don’t own the equipment provided in their subscription. It's essential to recognize, understand, and address this concern. When a HaaS term ends, an organization may be left without computers. However, proactive planning and partnering with an experienced provider can easily mitigate these concerns. The MSP should be able to offer reasonable extension options, early contract review, and assistance with transition planning.

2. Long-Term Cost Considerations 

HaaS offers predictable monthly costs, but organizations must carefully consider the long-term financial implications. This involves considering factors like total cost of ownership and contract flexibility to ensure alignment with budgeting strategies and avoid unforeseen constraints. 

3. Vendor Dependency and Transition Complexity 

Relying heavily on the HaaS provider’s services can complicate transitions away from their offerings, requiring a thorough assessment of contractual agreements and associated costs. While MSPs may offer some flexibility when a contract term ends, maintaining proactive communication with the provider is essential. This ensures that you’re prepared for any contractual constraints or surprises, facilitating smooth transitions instead of chaos.

4. Data Security Concerns  

Data security can be a concern when utilizing HaaS because organizations entrust their sensitive data and infrastructure to external providers, potentially increasing the risk of data breaches and unauthorized access. To address this concern, it's essential that HaaS providers implement robust security measures such as encryption and multi-factor authentication (MFA). Additionally, partnering with a reputable MSP adds another layer of security assurance, as they can demonstrate their security protocols and ensure that stringent measures are in place to protect data integrity.

5. Limited Customization  

Limited customization can be a drawback of HaaS, mainly because MSPs typically offer standard configurations. While these configurations often suffice for many organizations, some may have unique requirements that aren't addressed by standard options. Collaborating closely with the MSP enables discussions about customization needs within the HaaS framework. This collaborative approach empowers organizations to explore tailored hardware solutions when necessary, ensuring alignment with specific requirements and preferences. 

Making the Case for Hardware as a Service (HaaS)  

As we weigh the pros and cons of HaaS, it becomes clear that this model presents both unique advantages and challenges for organizations. Simplified hardware updates, strengthened security and compliance measures, scalability, predictable cost structures, and access to cutting-edge technology make HaaS an enticing IT solution worth exploring. 

However, it's essential to acknowledge the limitations in ownership and control, long-term commitment and cost considerations, potential vendor lock-in, data security concerns, and limited customization. These factors emphasize the importance of thorough evaluation and strategic decision-making. Organizations must carefully assess their specific needs, financial situation, and risk tolerance before embracing HaaS.  

IT Guidance for Technology Decisions 

At VC3, we guide business and municipal leaders through technology decisions, including exploring HaaS. Our approach starts with understanding your unique needs, ensuring HaaS aligns with your goals for success. Transitioning to HaaS requires careful planning, and we're here to assess the benefits and risks together. If your current IT provider isn't offering this level of strategic support, you're missing out.  

Contact us to learn how you can AIM higher.