Subscription models such as leasing and DaaS (Device as a Service) are growing in popularity. This increased demand and willingness to shift from purchasing goods to a subscription model adds a new layer of challenges.
You must remain agile to accommodate changing trends and deal with additional knock-on effects. Failing to do so leads to a less satisfactory offering in a market where demand grows, impacting churn and acquiring new talent into your business.
Ingram Micro Lifecycle works with technology and IT industry businesses, such as OEMs, network operators, enterprises, and other customers, providing reverse logistics and lifecycle extension services. We support customers with DaaS programs, ensuring they receive the maximum value and benefits. The Ingram Micro Financial Solutions division is on hand to support customer financing.
Below, we discuss the main challenges that leasing products entail and the questions you should ask DaaS program providers before selecting a partner.
At the end of the piece, you can download our complete workbook of handy questions for enterprises to ask potential DaaS program providers.
Leasing vs DaaS
While leasing has become synonymous with various models, there are different approaches. Device as a Service (DaaS) is provided to enterprises, while leasing can apply to enterprises and consumers.
Essentially, the customer subscribes to a product, paying a monthly fee, instead of a larger upfront payment. There are numerous other benefits of DaaS.
A DaaS program is more than just leasing a product and includes technical support, returns management, and onboarding. There are various challenges associated with leasing products rather than buying them.
Finding a DaaS program
When looking for a DaaS program provider, be aware of possible challenges and understand how your chosen partner will alleviate these.
Knowing the answers will better equip you to assess which partner will suit your requirements.
Prolonging product quality
The effectiveness of a DaaS program can be measured by how many times a product can be used. Once a user has finished with a device, it should be re-used to enable the circularity of the program.
At the end of a lease, a product may be scratched, damaged, or functioning at a sub-par standard. Restore the condition and functionality as much as possible to enable the efficient re-use of the product.
Devices don’t need refreshing as regularly unless there are specific upgrades or changes to your asset requirements.
Your DaaS program partner should supply lifecycle services, such as repair and refurbishment. This maximizes the number of times a product can be leased.
Research by IDC (International Data Corporation) demonstrates that efficient IT lifecycle management programs will reduce IT operating costs, and leasing can be a powerful tool to enable this.
Questions to ask
- What services are available and are any unique to them?
Resale potential
You may consider selling obsolete devices on the secondary market. Lifecycle management processes will slow depreciation over the device's lifetime. The product needs to be in the best condition possible to recoup the highest value. These funds can be used to invest in the acquisition of new lease products or other areas of the business.
Your DaaS partner needs to stay abreast of market trends and auction prices to be in the best position to value your devices for resale.
Questions to ask
- Does the DaaS program provider have a network of secondary marketplaces?
Warehousing & storage
Between users, your leased devices need to be stored somewhere that’s protected from loss and theft. This includes moving your devices between users, storage, and processing.
Failing to compliantly secure your IT assets could pose risks of data breaches, which will be damaging for your company. Discuss with your DaaS provider where devices are stored between uses.
Questions to ask
- What security processes are in place that cover storage facilities and logistics?
Demand
If your business is rapidly growing or the volume of devices you need is constantly in flux, then you need an agile provider that enables a degree of flexibility in the devices available for lease.
Depending on your situation, you may need to regularly refresh stock to have the latest models and technologies available. This means having early upgrades available as an option from your provider.
This will all depend on your contract terms so if you need this flexibility, be sure to check what concessions they can make.
Questions to ask
- What volume of devices will you need and how often is this likely to change?
- Can the provider accommodate that?
Onboarding and set up
Onboarding of new users, such as new employees, needs to be smooth, efficient, and quick to minimize the time needed to get them up and running.
If you have remote or hybrid workers, then you may have multiple locations where devices need to be shipped. For ease, your provider should be able to accommodate rollouts both in office locations and remotely.
Questions to ask
- What onboarding process does the provider follow?
Technical customer support
A DaaS program should empower your users to be able to find the answers and documentation they need, whenever they need them. For any other issues or queries that you can’t pre-empt, there needs to be a robust customer service solution in place.
The quicker users can get a response to a problem, the sooner it can be resolved.
Consider how your customers will want to communicate in the event of a query or issue – online, telephone, or both. Subscribing to a product has the main key appeal of being easy and straightforward. The whole end-to-end process must be seamless.
Your partner should be responsive, whenever and wherever the users experience problems. This includes arranging exchanges and returns of leased products, as well as shipping products and upgrades.
Questions to ask
- What technical support does the DaaS program provider have?
Discover DaaS opportunities
The DaaS model is an attractive proposition for both you and your users. Preparation in researching the best provider for you will ensure a smoother experience.
Ingram Micro Lifecycle is on hand to support customers through DaaS program enablement. We work to ensure your challenges of leasing products run smoothly for great user satisfaction and cost-effectiveness.
Download our workbook for the full list of questions to reflect on internally and to ask potential DaaS program providers to ready your enterprise for the shift from owned to leased devices.
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