The Ultimate Guide to Device as a Service

The global leasing market is growing, with the total market value expected to reach $2.4 trillion (£1.77 trillion) in 2026, increasing from $1.35 trillion in 2021.

Traditionally, the approach to using technology has been through ownership. You see the product you want, and you buy it outright. Enterprises forecast and plan budgets based on trends around staff usage and user demand.

Subscribing to products is not new. Think Netflix, Spotify, your mortgage, or rent. PCP (Personal Contract Purchase) for cars. You may not want to buy physical films or albums on disc and maybe can’t afford to buy a house outright.

A subscription-based model keeps the products accessible for those who don’t want to or can’t own them. Somebody owns that product, but you’re paying them to use it.

Why subscribe, not buy?

Both DaaS and leasing involve an ongoing monthly payment for usage compared to an upfront cost for ownership. Rather than own the product, you pay a subscription fee to use it.

It’s like financing a car where there are three outcomes from your lease ending:

• Pay the higher monthly fee, and own it at the end,
• Pay the lower monthly fee, and return the car for an upgrade/different model,
• Pay the lower monthly fee plus a final balloon payment to own it.

80% of US businesses prefer to lease their technology.

With technology subscription models, there are variances, which we’ll cover below.

Switches capex to opex

By owning the product, you have a capital expenditure (capex) cost on your balance sheet.

With a subscription model, this instead becomes an operational expenditure (opex) cost.

The former is a larger one-off fee, and the responsibility for the product is yours alone. The latter is a smaller ongoing fee, and the responsibility for the product belongs to someone else.

Efficient technology usage

When you own a product, you’re likely to use it for as long as needed. Between users, products can sit in storage, collecting dust, rather than being useful.

Residual sensitive information poses a data risk if not compliantly wiped between users. You’re responsible for the decommissioning and disposal of obsolete technology.

Leasing ensures your technology refreshes regularly and avoids becoming stagnant. You’ll also only be renting the devices you need rather than being lumbered with tech you no longer have a use for.

Moving from an ownership approach to a leasing one supports the circular economy as it promotes the lifecycle extension of devices as opposed to relying on the purchase of new technology. 

Making the most of technology already in existence releases the pressure on manufacturing new. This leads to a reduction in CO₂ emissions resulting from the manufacturing process.

It’s predicted that by 2040, the production of IT devices will account for 14% of total greenhouse emissions. 80% of the lifetime CO₂ emissions from IT assets are released at the point of manufacturing and logistics.

When your technology is no longer wanted, if it’s not formally recycled, then the chances are it becomes e-waste. By the end of 2022, there was a reported 347 million metric tonnes of unrecycled e-waste around the world.

E-waste is an item with a plug or battery that has been discarded. This type of waste can be particularly hazardous to those handling it and the environment if processed via open air burning or acid baths. These processes are often carried out in lesser developed countries to mine the e-waste for materials such as copper, gold, and silver. 

Leasing avoids products becoming e-waste because these are being used for longer and the leasing provider will be under obligation to compliantly dispose of these when it’s no longer economically viable to extend the lifecycle.

The leasing market is growing. In 2021, members of the Finance & Leasing Association provided £132 billion of new finance to UK businesses, households, and the public sector. This amount grew in 2022 to £148 billion.

In a subscription scenario, a product is always owned by someone else, with the user paying a regularly ongoing fee for use of that product. Below are various changes in the market and behavior that are driving growth within the leasing market.

Attractive subscriptions

How many subscriptions do you think your customers currently pay for? Think film, audio, medical prescriptions, education… For television and film alone there may be over half a dozen subscriptions.

These all add up. £277 per month is spent by consumers on product rental or subscription.

Following the global crisis of COVID-19, more people sought alternative ways of accessing services and everyday essentials. This led to an increase in subscriptions.

For example, for a regular subscription fee you can:

• access education courses online that can earn you qualifications
• receive medicines delivered to your door
• remove the worry of planning and preparing meals or finding new recipes to try
• watch nearly new film releases
• have a personal shopper pick and send you new clothing choices based on your style preferences and sizing
• be armed with a readily available supply of coffee pods that never run out

You don’t even have to leave the house.

Consumers are more willing to pay an ongoing fee for access to services and products. This shift in mindset also applies to technology and electronic gadgets, including smartphones, small domestic appliances (SDAs), gaming consoles, and e-scooters.

Sustainability awareness

Understanding around the impacts that manufacturing and human activity has on the environment has led to the term ‘ecoanxiety’. This is an increasing concern for and negative feelings that center around the state of the environment.

More people are seeking sustainable alternatives and swaps within their everyday life. This includes shifting from a linear economy to a circular one. Leasing technology products enables this as the consumer returns the device once their subscription is over. The device is then repaired and refurbished to go on lease to the next user.

31% of consumers will rent rather than buy products because of the decreased environmental impact.

Increased demand

Consider that over 91% of the world’s population own a mobile phone. That equates to over 7 billion devices in circulation.

With social and political issues that affect supply chains, this level of demand can become unsustainable. This means that buying new devices is not always easy or possible.

This can also be said for less affluent communities that don’t have the disposable income to purchase brand-new devices. Increased costs of living will affect spending, particularly on what may be seen as luxury, rather than necessary, purchases.

When purchasing devices isn’t possible or is less appealing, consumers will seek more affordable alternatives. Examples include buying refurbished, lower-cost devices, or changing from a large upfront cost to smaller monthly payments. Enter subscription payments.

Product diversity & accessibility

In a snowball effect, the volume of retailers and providers offering subscription models have increased. You can subscribe to a great variety of products, all from the comfort of your home.

Ease of access has never been better with the range continually diversifying.

As one product type is offered in the market, competitors must try to offer a more lucrative or attractive option. Businesses benefit from a steady cash flow while consumers have convenience and typically cost reductions.

Lifetime support

Subscription models often include in-life support. DaaS is an example of this.

If your customers lease technology, such as a coffee machine for example, their monthly subscription costs may entitle them to online or telephone technical assistance.

They’re covered should there be an issue, with the provider arranging an exchange if necessary. The providers need to be sure that they’ve got competent partners in place to offer effective lifecycle management services.

Keeping the customer happy is in the best interests of the business. It costs five times the financial investment to find a new customer than it does to retain a current one.

Providing this support improves the possibility of customer retention and also their satisfaction. It keeps the product functioning for as long as possible, aiding sustainability.

If the product is to be returned at the end of the subscription, repair and refurbishment services ensure it can be leased out again. This prolongs the life of the product, keeping it from becoming e-waste when viable.

Hybrid and remote working

Flexible approaches to work are becoming more normal and accepted. With a war for talent raging, employers need to offer appealing benefits and a healthy work attitude.

With more staff located remotely, onboarding and recovering devices, as well as offering in-life support, needs to be agile. Employees need to receive technical support for their devices wherever they work from.

This needs to be swift and responsive to minimize their downtime and ensure maximum productivity.

As there are multiple places where devices need to be sent, rather than single office spaces, the logistics of managing inventory can be an additional pressure on IT teams.

Acquiring devices through subscription models can alleviate this pressure as the management is taken away from internal teams, and instead organized by the provider.

Through Device as a Service (DaaS) subscriptions, 24/7 technical support can be given through a dedicated employee portal, so this has the added benefit of freeing up more of IT team time to be strategic.

A force for change

With factors such as ecoanxiety, accessibility, and attractive support packages influencing consumption of technology, there’s a rising pressure on the supply of devices through subscription means.

Subscription providers need to stay agile to remain competitive in the market, ensuring customer satisfaction, and ensuring profitability. This increased demand and pressure creates new challenges for providers to navigate.

Supplying devices through subscription models has its own set of obstacles to overcome that are different from those associated with supplying products for purchase. As the ownership of the product is not passing to the user, the responsibilities that align with ownership are also retained.

This means providers have to source different services to ensure the peripheral functions supporting leasing are covered. There are several reasons why purchasing devices causes conflict within device management processes.

Lack of visibility

This is an increasing challenge for businesses as flexible working surges in popularity. Inventory management is subject to human error. This can lead to mistakes when tracking device locations.

Outdated technology

Companies often buy new technology as new employees join. Employees who have been with the company longer have aging devices. They are often passed over for upgrades while new hires are given priority for new purchases.

This puts a strain on IT support as the breadth of technology within the business stretches. Support for older devices may fall by the wayside.

New hires within the IT department may not be as experienced in managing older devices. This decreases available support and increases the associated risks.

Maintenance

Older hardware needs increasing support as the condition deteriorates over time. Eventually, these will no longer support updates. The technology will age out of the market and become obsolete.

Aging technology leads to drains on productivity for the staff who are using them.

Security

Managing a variety of technology assets means staying on top of differing schedules for optimizing and updating security software. Different devices from different manufacturers will have differing requirements and increases data risks if not kept up to date.

Increasing costs

Purchasing new technology is not the only outlay involved. There are added services you need to invest in for upgrades, updates, and maintenance. It can be impossible to predict the total investment of your technology as you won’t know the exact costs associated with the upkeep over its lifetime.

Lack of flexibility

As a way to reduce the upfront cost of devices, buying in bulk can give the benefit of a discount. However, this means you’re required to purchase the same device rather than a variety. This limits the ability to tailor your devices to individual job roles and requirements.

Lack of control

If your IT team is already stretched thin with support tickets, they have to prioritize those at the biggest risk. Employees are left to their own devices, with fewer touchpoints from support. Issues could arise from installation or use of unauthorized software that could be harmful.

Device disposal

The sustainability of our technology use is a growing concern. What do you do with IT assets when you no longer have a use for them?

Throwing them into landfill is harmful to the environment, and so too are some recycling programs if not handled correctly. ESG initiatives are driving businesses to reduce their corporate e-waste.

Navigating through the options for repair and recycling is easier with a reverse logistics partner who can help extend the lifecycle of your devices and promote your move to a circular economy.

Logistics

Failing to establish a central hub for deployment, configuration, kitting, and management of all IT devices that your company owns risks autonomy and the consistency of these processes.

Owning the product and the responsibilities

These challenges stem from the retention of ownership for the product. Not only that, but it’s in the best interests of the company that the device quality and processes are to a high standard to ensure smooth operation for customers and profitability.

These challenges are more prevalent for DaaS offerings as these always include support services as standard, whereas leasing requires support to be sourced separately.

This can mean Data as a Service or Desktop as a Service. In the context we refer to it here, DaaS means Device as a Service. Like many of the ‘as a Service’ models, it involves a shift away from purchasing. The expenditure change shifts your upfront outlay from a capex cost to a regular ongoing opex fee – a subscription. You pay to use the product rather than paying for ownership. 

This model ensures you’re only paying for the technology you need when you need it. No more unused technology stored in cupboards, gathering dust, and posing a security risk.

As your business grows and employee requirements change, you can increase or decrease the volume of devices you use via lease.

DaaS offers a more rounded-out support package than just a lease. DaaS packages include technical support, pre-configuration of lease devices, simple staff onboarding, data wiping, and system management services. These are separate costs when purchasing technology.

What does DaaS include?

Designed to put you and your users at ease, DaaS packages can be very comprehensive. These are different elements that DaaS covers to reduce pressure on your purchasing needs:

Product ranges

Many product types are moving towards an ‘as a service’ subscription-based model. Some of the most common products leased under the DaaS model include e-scooters, cameras, gaming consoles, and smartphones (SEE FIG 1).

Your chosen DaaS partner will source products from key manufacturers or tailor sourcing to suit you. This includes not only hardware, but software too. If you have a list of requirements for apps or peripherals, such as earphones and chargers, to be included in the kit for deployment, then this is achievable.

Roll-outs

Getting products to your employees can be done either in bulk, through mass roll-out, or singularly, through direct roll-out.

Devices shipped through mass roll-out are delivered to offices and headquarters — anywhere your employees frequent in volume. This may suit instances of initial onboarding when you’ve just signed onto a DaaS program.

Direct roll-out sends individual devices to single users. This is more common for enterprises already in a DaaS program, that they have new hires that need onboarding.

Getting new employees set up with their equipment promptly helps achieve a smoother transition as they join the company. 26% of American workers have quit a new job because they were unsatisfied with the onboarding or training process.

Preconfigured devices

These devices are tailored to meet your exact requirements before you receive them to save time. In the infographic below, an airline has stipulated that phones sent to their employees have the camera disabled, a screen protector fitted, and display a branded wallpaper.

You can even specify the peripherals that a device is kitted with, such as earphones and a protective case.

For extra unique branding, you could get your company logo etched into the covers of tablets and laptops, for example.

Inventory management and warehousing

Your DaaS partner will keep a live inventory of all the products accessible under your lease. These will be broken down by categories such as model, serial number, color, size, etc.

These will be stored in facilities that the partner operates, adhering to safety and security policies.

Repairs, theft, and DOAs

If the leased devices develop faults, arrive dead on arrival, or are damaged, the DaaS partner will offer in-life support to the user.

In the case of DOAs (Dead On Arrival) and repairs, a return kit will be sent with a replacement device for the user to send the device back to the partner. When a device is stolen, a replacement device is sent straight to the user. Information pertaining to the incident can also be recorded on the system, such as a police case number, to ensure full end-to-end visibility.

All replacement devices will meet the exact specification that the original did.

Tickets can be submitted through a support portal that connects directly to the partner. There, exchanges and replacements can be requested and initiated.

This all helps minimize the downtime the user experiences, keeping your customers connected and reducing their pain.

End of lease processing

At the end of the lease, a return kit is sent to the user to get the device back to the customer. On receipt of the device, the DaaS partner will subject it to stringent checks and screening, assessing the repairs it requires to get it back to optimal condition.

These repairs and refurbishments will improve the grade of the device, increasing the device’s value. These ensure the life of the device can be extended so it can be leased again, avoiding unnecessary obsolescence and landfill.

All data-bearing devices will also be compliantly wiped to the highest standards mitigating data security risks.

If it’s not possible to extend the life of the device for another use, then it will be responsibly recycled, recovering as many materials as possible before going to waste handling partners.

Device upgrades

The DaaS provider can manage device upgrades on behalf of the DaaS program customer. The provider would obtain the new devices that the customer desires, preparing them to the required specification (create the gold builds), before arranging an exchange with the users of the currently leased devices.

Reporting

Getting insights into your devices and their usage can help with forecasting and planning. A DaaS program would provide the following metrics, among others:

• Current volume of subscribers
• Upcoming lease expirations
• Buyback values
• Estimated recommerce value
• Support case log

These would all be streamlined and supplied in reports as and when you need them. You can, in turn, use these to support other departments in your business, such as finance and sustainability.

User communications

With the ability to communicate directly with the end user, the DaaS partner can provide remote support, arrange device exchanges, and on/offboarding.

How new are the devices in a DaaS program?

If the distribution partner supplying the devices is well organized, agile, and has the appropriate financial resources, devices could be available soon after launch. This means that if you desire the latest and greatest technology, you can still acquire these on lease.

While contracts typically last 12-24 months, DaaS subscriptions are flexible. Early upgrades and renewals are possible if you’re already under contract.

How much does a DaaS subscription cost?

The cost to your business of leasing devices through a DaaS model will vary. There are contributing factors that will impact the cost, including:

• Number of employees – this directly impacts the number of subscriptions you need. The more employees you have, the more devices you’ll need.
• How many devices each employee needs – the cost per employee will increase if they need more than one device. For example, a DaaS subscription that supplies employees with smartphones will be cheaper than one that supplies smartphones and laptops.
• Support packages – this is also influenced by the number of devices and employees you have on plan. You may decide to keep some level of IT support in-house, but this could all be outsourced via the DaaS program.
• Level of security – depending on your industry and the type of data you handle, you may face increased charges for increased security to ensure your data is compliantly handled and disposed of.

Factors to look for in a DaaS partner

As DaaS grows in popularity, so too will the breadth of suppliers that can support these programs. Before taking the plunge and committing to a contract, be sure to ask questions and find the best arrangement that fits your needs, particularly around:

• Device model – make sure the partner can supply the model or type of device you want, and that these will meet your specification. If they don’t currently have access to what you want, can they source it?
• Do they have experience with enrolment programs to ensure the manufacturer’s specific device enrolment protocols are followed?
• Customer support and communication – check how customer support is reachable and how available they are. Consider what their response times are and factor in elements such as the time zones of your staff or the support. What can the partner NOT provide support on that you may need to look for elsewhere? How responsive have they been to your initial inquiries? Do they seem attentive and understanding?
• Onboarding options – are these conducted remotely or in person? Which option would work best for you and your employees?
• Costs - consider the factors above and see where the partner can add extra value for the volume or specific devices you’ll be looking for.
• Reputation – what are other businesses saying about them? What do ex-employees say about them? Does your network recommend them?

DaaS as a subscription model

DaaS is a great opportunity for enterprises with 1000+ employees, for example, that need regular access to technology as part of their job function, such as laptops and mobile phones. These programs relieve much of the pressure of managing mobility assets, ensures a smoother user experience, and assists your sustainability goals.

But how does this particular model differ from a standard leasing contract?

Both DaaS and standard leasing methods involve a contract between you (the business) and the owner of the devices. There may also be a financing agreement which alleviates additional financial pressures. You’ll legally agree to pay the funder of the devices a regular ongoing payment for the duration of the contract.

At their core, they center around the same concept. There are some additional similarities however.

Similarities

Aside from the subscription approach changing costs from a capex expenditure to an opex one, there are other similarities between DaaS and leasing.

Obtaining stakeholder support

As the models involve a different approach from purchasing, you’d need to get approval from your stakeholders before making the move.

This would mean explaining the change and ensuring you have their support and understanding. Tackle any questions they have about the change in advance and aim to foresee any future snags that might arise. Depending on your unique situation, this could be an advantage or disadvantage to switching. Getting their support could add a time delay to making the change. Alternatively, it could be a straightforward process.

Developing new processes

A new way of working means developing a new process flow for your company. You’ll need to understand the different possible outcomes and situations that could arise during your subscription to map how you and your staff should best approach each. For example, what should happen at the end of the contract? How would you process collecting devices, particularly if you have remote or hybrid workers?

Again, this could be time-consuming, but it’s an efficient approach to making the change, which saves potential future complications. Allow your processes to be agile as the company and its requirements change.

It’s important that activities are as system-driven as possible to enable maximized automation, for example in reminders or notifications, but also to allow effective monitoring, tracking, and recording of pertinent actions.

Breakages & replacements

If something goes wrong with an owned device, you need to have a plan for resolution. A lease or DaaS contract removes some of the burden of device management. Determine the level of support your contract includes and what issues it covers before settling on a supplier. You may be able to exchange a broken device for a replacement.

An efficient DaaS partner can replace a faulty or damaged device in under 24 hours. A fully configured replacement could be shipped immediately along with sustainable returns packaging for the faulty device.

The differences lay in ongoing technical support, which is outlined in the differences section.

Upgrades

Leasing models prompt you to refresh your technology at regular intervals. If you had purchased the technology, you’ll perhaps be left with aging equipment until it breaks or becomes unsupported.

At the end of your contract period, you can hand the devices back, and you have the choice to swap to newer models. If you’re happy with the devices you’ve got, you can refresh the contract rather than the products. You can also negotiate the ability to upgrade devices during the contracted period if this is something you want to offer your users.

Forecasting

With the switch to a monthly fee and a dedicated end to your contract, you can manage your finances tightly. You’ll know what your monthly outgoings are and when you’ll face a change in contract when it comes time to renew. The difference in financial costs associated with your technology will be for lifecycle services.

Sustainability & circularity

When renting equipment, the burden of decommissioning equipment compliantly is taken from you. The providers are responsible for instigating end-of-life processing when it becomes time.

You enable a circular economy as you hand back the device when you no longer need it, and the partner will repair and refurbish it ahead of going back out to another user.

The lifecycle is prolonged for as long as possible, rather than the product sitting unused or heading to landfill.

These are financially and environmentally sustainable options, as you only pay for the technology as (and when) you need it and ensure the device lifecycle is maximized.

Differences

Although the term ‘leasing’ can be used synonymously, some key differences exist between leasing contracts and contracts operating under Device as a Service.

Troubleshooting and support

You’re responsible for any ongoing technical issues and support for the duration of your leasing contract. Under a DaaS agreement, lifecycle services are provided.

• Leasing: You either need to pay a third-party IT support agency to provide assistance when something fails, or it becomes the responsibility of your internal IT team to manage. If you have a small team then this could be a bigger issue, especially as their skills and experience will need to be aligned with the products you’re leasing. The extra outlay is something you’ll have to plan for and accommodate in your forecasting.
• DaaS: The company your contract is with will provide support to get you back up and running. This eases the burden on your IT team so they can spend more time on strategic activities rather than firefighting.

Pre-configurations vs out of the box

Leasing products will come to you straight from the box, with no bells and whistles.

There’s a bit more flexibility with DaaS, depending on your partner. You can create a list of requirements that your devices must meet.

In the example we gave previously in Figure 1, the airline has specified that devices must be delivered to its staff with the camera disabled, a screen protector fitted, and their branded wallpaper preloaded onto the display.

Option to own

Leasing sometimes has the option to make higher monthly payments to purchase the device. Alternatively, there may be smaller monthly payments with a final balloon payment to allow you to own the product outright once the contract is over.

There is no option to eventually own products when used through Device as a Service.

Releasing time from your IT team

The impact on your IT team will vary depending on whether you choose leasing or DaaS. As mentioned above, DaaS includes lifecycle management so that doesn’t become the responsibility of your IT team.

The secondary way in which their time will be released is via asset tracking. This is particularly important if you have remote or hybrid staff. Your DaaS provider will track the assets as opposed to your IT team. If you were leasing equipment, it would be your responsibility to track it.

When products are recalled, either because of an issue or the contract ends, your IT team would need to organize the devices. However, a DaaS partner would do this for you.

DaaS is packaged with a system that fully integrates into your current processes. You, your customers, and/or employees can manage their devices, have full visibility, and can trigger actions. These include reporting faulty devices, losses, or thefts. Businesses can also seamlessly manage the end-of-lease process.

Products through DaaS have fewer implications for your IT staff so they are free to work on proactive projects, rather than work reactively.

Device quantities

This largely depends on the contract rather than the specific model. Some will allow you to increase or decrease the volume of devices you’re leasing during your contract. There’ll be a pre-agreed percentage of leeway outlined so you can increase or decrease your fleet.

This ensures you’re not paying for redundant devices that you’re not using, and gives you the agility to upscale if your team grows.

A leasing contract will only let you change volumes at the end of the contract when you renegotiate.

DaaS offers more agility

For an enterprise, releasing staff care to do proactive and strategic business functions can be invaluable for your bottom line. Getting the full package of support that DaaS offers takes much of the burden away.

While the previously mentioned challenges of device management exist to some extent for all businesses, there are multiple benefits of switching away from the upfront purchase model to utilizing device as a service programs. Here are the key benefits of opting for the DaaS model.

Efficient

The DaaS package will include various lifecycle and device management services that work towards extending and maximizing the lifecycle of the IT estate. The DaaS program provider you choose to work with will have the infrastructure and resources in place to efficiently manage this, providing both you and your device users a seamless experience.

Financial improvements

As lifecycle management is truly connected, you pay one fee for everything. No need to source additional partners for other services for additional costs. You’ll be paying one fee for in-life services and end-of-life services.

You pay for the technology you need as and when you have a use for it, so your payments are more cost-efficient. The model also enables insights into your technology usage trends and future needs for budgeting purposes.

Improved productivity

Configuration of devices will be completed ahead of your lease which means it’s provided to you or your employees ready to go, straight from the box. This removes the hassle of wait times and lengthy onboarding processes.

An estimated 1.8 billion working hours are wasted by UK office workers every year because the equipment they’re using isn’t efficient enough to meet their needs.

Expanded mobility and control

DaaS has the flexibility to pre-configure and directly send devices to wherever your employees work, a great approach when they’re more often out in the field or working from home.

Through device enrollment into a Mobile Device Management (MDM) plan, the DaaS provider can manage devices remotely and fully control any updates or support required. This increases your visibility and data safety.

Frees up the time of IT teams

IT departments are often fighting against an oncoming wave of minor support tickets which monopolizes their time from thinking and planning strategically. Helpdesk requests become streamlined with direct end-user support provided under the leasing contract.

Your IT employees have their time released to focus on tasks that have a larger impact on the profitability of the company and its operations. The ability to focus the in-house IT team on strategic projects was a key benefit of DaaS, according to 55% of medium companies and 49% of large companies.

Your IT employees can enjoy bigger-picture projects while your end-users benefit from a better, more efficient experience.

ESG advantages

Moving from an ownership approach to a leasing one supports the circular economy as it promotes the lifecycle extension of devices. Making the most of technology already in existence releases the pressure on manufacturing new. This leads to a reduction in CO₂ emissions released during the manufacturing process.

Winning the war for talent

Jobseekers are looking for the best packages when looking for employment and this includes being able to work with the latest technology. Being presented with aging or obsolete equipment on their first day is not going to appeal to your new starter. Remain an attractive proposition without having the upfront outlay.

Availability of technology

Covid may be retreating into the shadows of yesteryear but the impacts on the supply chain are still being felt.

DaaS suppliers are always receiving used products back into their inventory ahead of repair and refurbishment. These become available for re-use and can become a more easily accessible option than brand-new technologies elsewhere.

Regular security updates

As your devices are part of an ongoing servicing program, they will be subjected to regular security checks and updates. These are not only throughout your lease period but also when a device is returned. You have the assurance that every device you received has gone through stringent checks and procedures to maintain compliance.

Improved user experience

With any kind of service provision, the satisfaction of the end user is always paramount to its success. When it comes to technology, this is largely influenced by the levels of productivity and connectivity that we can achieve. Maximize these and satisfaction is likely to be higher.

Streamlining communication with end users, minimizing their downtime, and making them feel supported is key.

When supported by a DaaS program provider, the end user interacts directly with the partner as opposed to the internal IT team. This takes the pressure off the IT team and ensures dedicated support should any issues occur.

Your users will be given access to a dedicated web-based portal to log into and report issues with their leased devices. This 24/7 e-ticketing system provides tracking and insights into the technical issues that users are experiencing.

Benefits of device lifecycle management

One of the key benefits of using a DaaS program provider, is the packaging of services under one roof. You can combine in-life and end-of-life technology services with one provider instead of being serviced by multiple partners.

This end-to-end lifecycle management for your fleet of devices

When you’re contracting the use of a device, the ownership doesn’t pass with the use. The responsibilities of ownership still remain. This is different from selling a device. Once the device is gone from your books, you no longer have a responsibility for it (unless under warranty).

Therefore, there are challenges associated with leasing as opposed to selling devices.

Costs

One of the biggest factors that will influence the success or failure of your program is the return on your investment. The scale of your operation will reflect in the amount of investment required but also in the return.These are not only direct costs but also peripheral costs that will ultimately promote the sustainability of the subscription model.

Upfront inventory investment

To get a leasing model off the ground, you’ll need large upfront investment to buy the inventory that you want to offer. This may also include the added costs of warehousing, staff, and logistics, for example.You may need to source financing to fund this activity. You’ll need to be aware of what products your target audience are looking to leasing so you make appropriate purchases.

Prolonging product quality

To ensure you can see as high a return on your initial investment from leasing, you need to maximize the number of times a product can be leased. This requires investing in services that repair and refurbish devices. Perhaps you will have an in-house team with the expertise to manage this, or you can outsource it.

Resale potential

When you are no longer able to lease the product, you should consider selling it on the secondary market. To recoup the highest costs from this, the product needs to be in the best condition it can be. These funds can be used to invest into the acquisition of new lease products.

Maximizing profitability

Lifecycle management processes will slow depreciation over the device lifetime. These will ensure that the product lifetime is prolonged and has the potential to be leased for longer, bringing in a return on investment for longer.

Warehousing & storage

The level of demand for your service will impact the volume of storage you need, but even a small operation will need secure premises.

You’ll also have to invest in some level of staffing or automations for the smooth processing of inbound and outbound products.

Inventory valuation

Products through leasing aren’t always brand new. When dealing with products that have already been used in your DaaS program, you need to know what the best market value is for that device for your program partner to resell.

This aids with creating the pricing structure for your products, and also should you decide to sell the used product on the secondary market.

Demand & customer satisfaction

Keep your customers satisfied by offering the range and volume of products required to meet the level of demand.

You must also regularly refresh stock to have the latest models and technologies available. This means keeping on top of the latest releases and trends.

Customers are up to 70% more likely to buy an additional product or service once they become a subscriber.

Your customers won’t want to experience what they may perceive as excessive wait times for gadgets and technology. This is particularly the case if your competitor offers what they want instead of you.

Agility & flexibility

Offering the range of options that your customers want, such as deals and mid-contract upgrades, will entail a degree of agility.

Be proactive about customer technical support. Empower your customers to be able to find the answers and documentation they need, whenever they need them. For anything else that you can’t pre-empt, you need a robust customer service solution.

Consider how your customers will want to communicate with you in the event of a query or issue – online, telephone, or both? What developments or investment would this require from you to offer these?

Strive to increase connectivity by minimizing any downtime they experience, which may involve replacement devices shipped to exchange for faulty ones.

Customer support & technical returns avoidance

Responding to your customers quickly assists in increasing customer satisfaction and minimizing downtime. The quicker you can respond to a problem, the sooner it can be resolved.

Be responsive whenever your customers need you, wherever they are. This includes arranging exchanges and returns of leased products, as well as shipping products and upgrades.

You need a responsive customer support team who can handle queries online and by telephone. These agents need the ability to report on regularly occurring issues that may assist with future product development.

Subscribing to a product has the main key appeal of being easy and straightforward. The whole process must be satisfactory for the customer to retain them.

Scalability

As demand grows for your offering, you need to be able to keep up. Failing to meet demand and you might lose customers elsewhere. This includes having the investment, infrastructure, and logistics to upscale when needed. This may include branching out to other product ranges or to new locations.

A solution to the challenges

DaaS provides many opportunities to soothe these challenges, often taking away some of these burdens while enabling you to focus on your core business functions.

Did you know that a smartphone can be refurbished up to 4 times? A lifecycle partner can enable this effectively while lowering your carbon footprint and saving you money.

Tackling the challenges above may involve expertise, infrastructure, and logistics that your business can’t internally support. Reaching out to a third-party partner will relieve the pressure and enable the optimization of the reuse cycle.

Discover below the various advantages of working with a third party to ensure the efficient lifecycle management of your fleet of leased devices.

What is a lifecycle partner?

In the technology sector, this is a company, like Ingram Micro Lifecycle, that offers a breadth of services and solutions for electronics to make their lifecycle efficient, for as long as possible. This is a sustainable solution that provides longevity and circularity for your IT, mobility, and electrical devices, reducing your e-waste footprint.

Services may include, but not be limited to:

• Returns management
• Aftermarket sales
• Technical call centre
• Repair
• Refurbishment

Benefits of working with a lifecycle partner to manage subscriptions

Choosing to lease out your products rather than sell them comes with a variety of challenges. Working with a lifecycle partner helps soothe the complexity of these challenges while ensuring great customer satisfaction and return on investment.

1. Sustainability

It’s estimated that a refurbished smartphone is 11 times more sustainable than a new one. Part of that is because 80% of a new smartphone’s carbon footprint is generated during the manufacturing process. Your lifecycle partner will be able to report on sustainability metrics to support your ESG objectives and demonstrate CO₂e savings.

2. Costs

Through lifecycle extension services, the end-of-life point of any device is prolonged. As the device works efficiently for longer, you avoid the need of having to purchase new more often. Using a device for longer is more cost-effective than purchasing new. The partner will manage the user journey, achieving higher customer satisfaction and increasing the likelihood of subscriber retention. This saves costs in minimizing churn.

3. Usability

Repair and refurbishment services uplift the grade of the device. This correlates to the usability, cosmetics, functionality, and durability. The higher the grade, the better the quality of the device. Through the application of these services, devices are regularly restored to better grades which extends their efficiency.

4. Skills & certifications

As this kind of activity will not be the focus of your business, aligning with a third party will offer you access to expert staff that can perform a range of highly skilled and technically comprehensive processes. The provider will have certifications and accreditations to prove their compliant competency and access to manufacturer-approved parts, processes, and guides.

5. Reporting & insights

Knowing the industry inside and out, the partner you choose should have many years of experience. With that experience comes insight into reliable reporting and accurate predictions that will aid in forecasting. This will support financial plans and capitalize on market price trends. This helps set your lease pricing and also with resale values.

6. Recommerce

Your chosen lifecycle partner should have access to a robust network of secondary market resellers and channels. This enables the recovery of residual value when you no longer have a use for a device. Selling on the secondary market not only recuperates some value for you for re-investment into your business, but enables the device to be re-loved elsewhere, avoiding e-waste.

7. Grading

Each time a device is returned at the end of a subscription, it must be graded to assess the quality and function. This will determine what repair and refurbishment is needed to return it to a useable condition to be reused by another user. If the device is deemed beyond economical repair by the grading process, then it will be sorted for parts harvesting and responsible recycling. A lifecycle partner will have the experience and knowledge to be able to conduct accurate grading and therefore process the device efficiently.

8. Logistics & tracking

Loss or theft of devices impact the cost-efficiencies of device subscriptions and risk data security. Secure and compliant returns management is important to avoid this.

Inventory management ensures that all devices on or off subscription are easily located, with their locations visible. This is particularly important if you have subscribers spread across several locations.

The provider you work with will retain up-to-date inventory tracking and liaise with subscribers when devices need to be recalled. This may be due to upgrades, exchanges, or leavers.

They will arrange the necessary logistics, with secure transportation and warehousing, plus visibility of devices so you can call them off when needed.

9. Pre-configurations

If your device subscriptions are offered through the DaaS model, then devices can be pre-configured based on a set list of requirements before despatch to the end-user.

Want a screen protector and case fitted? Done.

Need the camera disabled? No problem.

Want the phone to display a company-branded wallpaper? Sure thing.

This is all possible with a device as a service partner. It saves you and your subscribers time.

10. Customer support

Look for a partner that can offer dedicated customer support by telephone and online. Your customers need a seamless experience and that entails being able to speak to a person about their issues and ask any questions they may have as a subscriber.

Creating a bespoke or integrated 24/7 customer service portal empowers your customers to report issues, arrange exchanges, view contract documentation, and monitor ongoing cases.

11. Product strip downs

With the expertise and knowledge of electronics, any goods being returned or experiencing a high level of faults can be stripped down for evaluation. Following a root cause analysis, findings can be fed back into manufacturing or customer service teams for better customer support. Often a time-consuming process, you need a dedicated team that can get into the heart of the product to truly understand the intricacies and where problems lie.

Relieving pressure and ensuring success

Working with a lifecycle partner makes subscribing to technology hassle-free whilst ensuring your users or customers can benefit from a smooth experience as well. Your lifecycle partner works on the complexities of subscriptions behind the scenes, offering cost-efficiencies and supporting your sustainability goals.

At Ingram Micro Lifecycle, we offer a comprehensive Device-as-a-Service (DaaS) solution that encompasses all aspects of the solution from one, trusted partner. This includes technology supply, flexible finance solutions, and lifecycle services.

As a technology distributor, we excel in sourcing and supplying a wide range of devices tailored to meet the unique requirements of businesses. With our DaaS offering, we provide businesses with access to the latest hardware, such as laptops, desktops, tablets, and more, ensuring that organizations have the right tools to drive productivity and innovation.

Ingram Micro Financial Solutions plays a crucial role in our DaaS offering by providing flexible financing options. This enables businesses to acquire the necessary technology without the upfront capital investment, helping them optimize their budgets and allocate resources more effectively. Through our financing solutions, organizations can easily adopt the latest technology while maintaining financial flexibility.

Our DaaS offering lifecycle services, which focus on the responsible management of the technology lifecycle. This includes services such as device deployment, configuration, ongoing management, and ultimately, the retirement of end-of-life devices. By leveraging our expertise in IT Asset Disposition (ITAD), Ingram Micro Lifecycle ensure the secure disposal, recycling, or remarketing of retired assets, complying with regulatory requirements and data privacy standards. Our lifecycle services contribute to sustainability efforts by promoting the circular economy and reducing electronic waste.

By combining technology supply, financial solutions, and lifecycle services, Ingram Micro Lifecycle's DaaS offering provides businesses with a holistic solution for their device needs. From sourcing and financing to deployment and retirement, Ingram Micro Lifecycle empowers organizations to streamline their technology management processes, optimize costs, and contribute to a sustainable future.