Cost is a prohibitive factor for small and midsize businesses (SMBs), and hardware purchases are scrutinized more than ever before. Many times, they’re put off—sometimes indefinitely. It’s not difficult to understand why.

Hardware purchases represent a major commitment, and SMBs can’t afford to have precious capital tied up in hardware with a clock rapidly ticking toward obsolescence. When to buy hardware can be a crippling decision: Is the next big thing only a week away? A month? What’s the right time to pull the trigger?

These are some of the problems solved by Hardware as a Service (HaaS). It fills a natural need in an obvious way, and replaces the one-time transaction—one that’s become more and more difficult to instigate—with a long-term relationship between client and vendor. And for companies that struggle to pay the cost of hardware upfront, HaaS can be a lifesaver.

HaaS packages will typically include the hardware, of course, but also the compatible software, plus a standard maintenance plan—all for a monthly charge. Installation also may be included under the terms of service. And because HaaS is structured like a service instead of a typical hardware sale, contracts may include a service-level agreement (SLA).

Channel sales leaders, take note: The industry is seeing especially strong growth of HaaS in the retail, healthcare and hospitality industries, among others. Here’s a quick look at the top four ways your small and midsize business clients stand to benefit from HaaS:

1. Cost reduction

Reduced capital expenditure is one of the key drivers for HaaS adoption. With lower hardware costs, companies are able to dedicate more of their available capital for IT architecture and other important functions. With service included in the contract, there’s the additional benefit of cost certainty. It’s very much a what-you-see-is-what-you-get arrangement.

2. Utility service

Speaking of service, HaaS helps eliminate uncertainties around the maintenance and performance of the provided hardware. Equipment and services are both included in the service-level agreements signed between the provider and the client. There’s less pressure than ever on customers to achieve expert-level knowledge on the maintenance front.

3. Flexibility and scalability

“If one’s not enough, maybe two will do.” HaaS enables an enterprise to scale its service package up or down, depending on the changing needs of the business. Components can be added or subtracted as necessary—in contrast to the problems you’re likely to encounter when purchasing equipment outright.

4. Automation and updates

One of the driving factors for the adoption of HaaS is the assurance of regular updates with the latest hardware solutions—which in turn promises regular improvements in performance without additional capital investments.

To talk to our experts about the newer HaaS offerings, or the rest of the Carbonite & EVault portfolio of backup and business continuity products and services, please call 855-227-2249 or email [email protected].

Jon Whitlock is Vice President at Carbonite, a provider of cloud and hybrid backup and disaster recovery solutions for small-to-midsize businesses.

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