Hardware as a Service (HaaS): Guide in 5 Points | UNext Jigsaw

Introduction

Out-dated IT infrastructure impacts businesses by leading to performance issues, and troubleshooting concerns. Besides negatively impacting productivity, it increases production cost in trying to upgrade the hardware or compatibility issues while trying to keep up with new and advanced technologies. Moreover, the cost incurred due to low productivity and wasted time that may arise from faulty systems and poorly functioning computer hardware is not to be taken lightly.

The substantial loss incurred by the company due to inefficiency and productivity while dealing with old technology can become a major obstruction in realizing the company’s objectives. It impacts the business’s profitability and scalability in the long run. Hardware as a Service (HaaS) provides solutions for these problems for medium-sized enterprises that lack IT staff or budget to maintain hardware every alternate year.

1. Hardware as a Service (HaaS) Definition
2. Hardware as a Service in Cloud Computing
3. Hardware as a Service – Examples
4. Advantages of Hardware as a Service
5. Challenges of Hardware as a Service

1) Hardware as a Service (HaaS) Definition

What Is Haas? Hardware as a Service (HaaS) model is synonymous with licensing or leasing business models. Here, the customer pays for the services rendered by the hardware rather than purchasing it. In essence, the customer pays for the value provided by the service instead of owning the underlying hardware itself. HaaS service allows businesses to lease tech assets from a service provider rather than going for its purchase. It gives them the edge over their peers in owning the latest technologies at an affordable cost.

For instance, if the organization has budgetary concerns over buying new equipment, it makes more sense to lease hardware from a service provider to cut costs and make avail of the latest technology. Moreover, IT infrastructure can quickly become outdated, and as such, it becomes a boon for mid-sized companies that cannot afford to upgrade technologies every few years.

2) Hardware as a Service in Cloud Computing 

Large enterprises may benefit more from using HaaS rather than purchasing, maintaining, and upgrading or replacing IT hardware. It assists in simplifying the business process by giving more time and focus on the core business area rather than looking after the IT infrastructure. It ensures that IT infrastructure maintenance and its control are handed over to professionals so that companies have extra resources to add more value to their organizational goals. 

The services rendered by HaaS are also highly customizable as per the specific needs of business houses. It can cater to enterprises’ individual hardware and budgetary needs to ensure efficiency in delivering services. Some of the best-known HaaS services has a composite computing environment. The service provider takes care of the maintenance of the IT hardware at far-off places.

The different HaaS service components connected via a collective computing environment uses the cloud to access its high computing power. HaaS system allows small to mid-sized companies to lease this offshore computing power to harness their IT infrastructure by avoiding high expenditure costs on IT systems and with less internet bandwidth. For cloud computing, it uses active computing hardware and data server to function as a remote service provider.      

3) Hardware as a Service – Examples

Some of the hardware as a service example include ‘pay-per-use’ services including cab and bike rental services, IT leasing services, for instance, desktops, laptops, printers, servers, smartphones, tablets, etc. HaaS solutions may apply to several industries including the health sector, education, pharmacy companies, manufacturing, government, and IT services, etc.

4) Advantages of Hardware as a Service

Some of the advantages associated with deploying a HaaS solution are as follows:

• Cost-Effectiveness – HaaS services can save businesses from the ever-rising cost of IT infrastructure and its hardware upgrades. The servers require optimal functioning to handle the tasks at hand while the systems get automatically updated via the network, thus making it compatible with the software deployed. 
• One-Stop Solution – Business houses need to pay only a one-time payment for monthly or yearly subscriptions for the Haas services. They need not purchase any hardware or any IT equipment. This makes it possible for organizations to enjoy tax benefits and re-invest their capital on other operational expenses to increase their profitability and effectiveness.
• Proactive Service Model – HaaS uses a business model that is built on the value premises of delivering customer service effectively. It offers reliability with a robust hardware system and IT infrastructural support round the clock.
• Enhanced Business Security – Businesses are more secure with recovery plans and system upgrades whenever the need arises. It provides a sustainable IT infrastructure system that can withstand security threats and enables the company to function without any service disruption or with minimum downtime.
• Scalability – Business growth and system scalability go hand-in-hand. With HaaS, future IT infrastructural expansion or upgrading can be easily done with ease. Enterprises no longer have to worry about scaling up their IT infrastructure in the near future to stay current. They no longer have to worry about the huge capital expenditure in its IT up-gradation as the HaaS solution encapsulates all such future costs.

5) Challenges of Hardware as a Service

Some of the challenges that a business might face while implementing HaaS are summed up below:

• Dependency on the Internet – 

In case of downtime caused due to an outage in the bandwidth or internet service from the vendor, it may lead to delays in operations causing business processes to run ineffectively.

• Security and Privacy Threats –

For Cloud Computing HaaS services, the entire IT system has to be outsourced, and the complete control might go in the hands of the service provider. This may prove to be a security concern or a threat to privacy breaches at times. Businesses can opt for artificial intelligence while incorporating network protection in such cases.

• Budget concerns for Small Firms –

In the long run, small firms and start-ups might feel the heat in leasing a full IT infrastructure. It may prove to be expensive to pay a yearly or monthly subscription fee for maintaining its hardware and services.

Conclusion

Overall, Haas is an evolving trend that centers around the needs and requirements of a competitive business environment where performance and efficiency are the major highlights. Besides saving businesses from heavy capital burdens, it saves a lot of time and effort in realizing the organization’s objectives. It keeps businesses to stay afloat by getting connected to their clients in providing efficient services. With HaaS, businesses can accommodate the client’s needs by staying relevant with the latest technologies in providing their services.

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