Hardware as a Service (HaaS) is a process of procurement similar to licensing and subscriptions. The hardware which has to be managed is placed at the client’s facilities and managed by the service provider. Cost related to this hardware is added into the monthly subscription rate which is paid by the client for the managed services offered. It involves remote management of all the hardware installed at the client’s site. HaaS provides multiple advantages as there is no need to maintain a dedicated staff for managing the hardware installed. Also, bulk of the management work is performed remotely, which further reduces the time and money requirements for the client. Due to the increasing number of companies in the information technology (IT) domain, HaaS market is expected to grow during the forecast period.
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Established players in the market simply provide the hardware required to the client and add the cost in the monthly subscription. However, it is not possible for the small companies or the new entrants in the market as they cannot afford to pay whole cost of hardware upfront. As a solution, smaller players in the market have started leasing the hardware directly to the client. In this model the client will be responsible for credit and the financial responsibility related to the hardware. Reduced capital expenditure is the main driver of HaaS market. Companies are able to generate more working capital for other important functions and architecture. Furthermore, uncertainties related to maintenance and performance are eliminated with the help of HaaS. Equipment and services are both included in the service level agreements signed between the service provider and client.
One of the major driving factors for the HaaS market is regular technological updates for latest hardware solutions and improved performance without any cost constraints. HaaS offers scalability to an organization, and thus, growing or decreasing needs of a company are addressed accordingly. With the help of HaaS, a client is able to integrate any number of components according to the enterprises’ needs. In case of business contraction, HaaS enables an enterprise to scale down its business operations. Enterprise network security often requires both hardware and software components to be updated regularly, this challenge is also solved with the help of HaaS. Increasing need for data storage applications and hardware is also expected to drive the HaaS market during the forecast period. However, data protection and integrity issues can restrain growth of the market.
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Hardware services/components provided in the HaaS market include computers, servers, network infrastructure components, backup and disaster recovery, phone systems, software and others. HaaS solution can deployed by two methods, on-site deployment and remote deployment. Method of deployment is chosen on the basis of hardware setup requirements. Furthermore, on the basis of geography, HaaS market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. Major players associated with HaaS market include Amazon.com, Inc., Kloud9 IT, Inc., Xpress, Inc., TEConsult, Provisionage LLC, Fidess Group, Inc., Bocotek, Inc., TechBrain, Trust Technology Solution and Windstar Technologies, Inc.
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