The Truth Behind The Most Common Misconceptions Regarding DaaS
Today's increasingly competitive business landscape means organisations must do what it takes to be on an even playing field with the competition first if they ever hope to beat them someday. And in our modern world, the greatest equaliser in the commercial sector is none other than digitalisation. However, given the rapidly evolving pace of technological advancement, keeping up with the times is another requirement to stay abreast with one's peers in the market. Enter Device-as-a-Service (Daas), the subscription model that allows organisations to stay on the bleeding edge with their IT infrastructure in the most cost-effective way possible. But as with most things that gain popularity, DaaS is surrounded by its fair share of misconceptions that may misinform potential organisations that need it the most.
Below, we go over these common myths and the truth behind them.
1. There is no difference between DaaS and IT leasing
While it is true that equipment leasing is part of DaaS, it is not the only thing that it offers. What sets DaaS apart is the myriad of other essential services and outsourced IT support in Singapore that comes with it, including configuration, maintenance, repair, replacement and even disposal. These services relieve organisations of the many other tasks involved after accessing the hardware they need. Not only that, but some DaaS providers also offer trade-in services for older hardware, allowing businesses to reinvest the residual value of their ageing equipment.
2. Financially weak organisations are the only ones who benefit from OPEX
Replacing the company's devices every three to five years involves a hefty investment that could be better spent elsewhere. Addressing this cost inefficiency of the traditional hardware purchasing model requires switching to a new one, like the Operating Expenditures (OPEX) model of DaaS, which is based on operational costs.
OPEX covers all of an organisation's recurring or operational costs, such as hiring consultants. Engaging their services gives one access to their expertise at a pre-agreed hourly rate for a set number of hours. On the other hand, CAPEX refers to capital expenditures and is similar to investing in a product. Purchasing devices for your workforce falls under the CAPEX model. Take a printer, for example. The purchase or ownership of a printer falls under CAPEX, while the annual costs for ink and paper are under OPEX (using).
For some organisations, DaaS may seem like a solution for those struggling financially just because they cannot fund their hardware all at once and consider it a lease model, which is anything but. DaaS is just that, a service—you pay a monthly fee that includes IT equipment and hardware, and it has nothing to do with one's financial health. Not only that, it gives IT teams some breathing space so they can focus more on innovating and taking the business's internal processes to the next level.
3. DaaS diminishes the purpose of an organisation's IT team
Purchasing and managing IT equipment is inherently time-consuming, often leading to IT teams not having enough time or room to progress on more critical responsibilities like reviewing internal processes or creating innovative solutions. But while DaaS takes over a portion of their workload, specifically the purchasing, configuration, roll-out and maintenance of devices, it also frees up a lot of the time they need to work on what is important.
Deloitte conducted a study among organisations that leverage XaaS solutions, which is short for "Anything as a Service" and is the collective name for offering the use of an information and communications technology (ICT) service or product. They concluded that using an XaaS solution granted organisations a host of benefits, from gaining access to advanced technologies and faster innovation to focusing more on their core business.
The vast majority of survey participants stated that XaaS has helped them significantly improve their business models, six out of ten even indicating that the model gives them a competitive advantage. In short, IT teams will continue to have plenty of work to do even if their organisation uses DAAS, and, most importantly, they can make better use of their expertise by working on important projects.
4. DaaS is only beneficial for IT
While DaaS brings many advantages for IT teams, other departments, such as finance and HR, benefit from it in the following ways:
Finance: DaaS offers better visibility over IT expenditure as it is comparable to other subscription services like Spotify or Netflix—the company pays a fixed amount per month for hardware and additional services it needs.
HR: Employees have different device requirements depending on their role or job responsibilities in the workplace. Hence, it may be best to build a standardised model with different bundles segmented by function groups and personal characteristics to allow greater freedom of choice for employees. By catering to their work preferences, businesses help increase their satisfaction and productivity.
Conclusion
Whether traditional in-office workplaces or hybrid working environments, all businesses of every size can benefit from the flexibility and predictability that DaaS provides. While it is still an emerging technology with much room for development, its proven track record of facilitating significant cost savings and seamless scalability so far now makes it invaluable for enabling business growth.
Suppose your organisation has much to gain from switching to the DaaS model. In that case, JK Tech is an IT consulting firm in Singapore you can trust to provide you with the latest and high-quality IT hardware and software combined into one predictable monthly subscription fee. Besides DaaS, we are committed to helping businesses leverage today's technologies through our other services, including IT consultancy, data centre modernisation, digital workspaces, and more.