Spiceworks finds more IT buyers will pivot from hardware leasing to hardware as-a-service, but MSPs and technology vendors face roadblocks to adoption
IT industry marketplace Spiceworks has unveiled its 2019 Hardware-as-a-Service report, shedding light on business perceptions of the HaaS model. While a majority of respondents believe the as-a-service paradigm can lighten the load for IT departments, one-quarter of them remain unsold on HaaS’ benefits.
The Lowdown: This past January, Spiceworks surveyed 1,115 IT buyers at organizations of every size and in an array of verticals across North America and Europe. The goal? To find out how widely deployed the HaaS model is, and will be, and to gauge attitudes and perceptions around it.
The Details: According to the Spiceworks report, the transition to HaaS, a subscription model under which hardware devices are owned, managed, and supported by a third party (typically, a managed service provider or a hardware manufacturer), will happen gradually over time. Those evangelizing HaaS are facing some perceptions that could stymie its adoption.
Some of the major findings:
> 48% of respondents currently lease one or more types of hardware. In that group, the respondents are evenly split, with 24% managing their leases in-house and 24% using the HaaS model for at least one device type.
> HaaS is most widely used for printers, but the percentage of businesses using HaaS for other devices, such as desktops, laptops, and tablets, is expected to increase. Among businesses that currently lease hardware, 6% plan to move to the HaaS model in the next two years.
> The top reasons for adopting HaaS were reduced time and resources used by internal IT teams (71%), improved troubleshooting and support (47%), and easier setup and maintenance (43%).
> The main reasons not to adopt HaaS: adequate in-house resources for managing hardware (56%), concerns about lack of control over hardware (42%), and concerns about cost-effectiveness (34%).
> 26% aren’t sold on the benefits of HaaS.
> The most common HaaS services are parts replacement (81%), hardware support and troubleshooting (74%), hardware replacement and refresh (61%), and device monitoring (37%).
> Almost two-thirds of IT pros believe communal hardware such as printers are better-suited for the HaaS model than end-user devices, and nearly one in three say HaaS makes sense only for larger organizations.
> HaaS is most popular in the retail (31%), education (29%), and financial service (29%) verticals.
Background: According to Transparency Market Research, the global HaaS market is expected to reach a value of $305 billion by 2026, up from $41 billion in 2017 – a compound annual growth rate (CAGR) of nearly 26%.
More hardware vendors and solution providers have unveiled HaaS offerings as the subscription and as-a-service models continue to take hold.
In March, for example, HP made a series of announcements around its everything-as-a-service push, debuting a new portal, financing options, and gamification features aimed at spurring partners to sell more PCs and printers under a service-led model.
And earlier this year, CompuCom, the managed service arm of Office Depot, unveiled a Desktop-as-a-Service (DaaS) initiative for Apple equipment. Under that subscription-based service, CompuCom provides businesses with end-to-end lifecycle management of Apple devices, including acquisition, provisioning, maintenance, and disposition.
The Buzz: “HaaS providers have already found early success with the model, particularly with devices like printers that are often troublesome to support,” said Peter Tsai, senior technology analyst at Spiceworks. “To further drive HaaS adoption, providers will have the most success targeting businesses that lack the manpower or geographic reach to adequately service devices in-house, in addition to businesses that are already sold on the leasing model. Considering the IT leasing and financing market is estimated to be a $234 billion industry, even small shifts in buyer behavior can add up.”