5 Comments
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Great post Philippe.
Upfront cost of hardware (mobile devices) is an important reason for slow adoption of enterprise mobility in developing economies. I think HaaS will help solve this problem to some extent.
I really liked your statement about “re-leasing”. Many won’t mind using older hardware at low cost as long as it does the job.
- Onkar
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Thanks for the comments Onkar. One favor though please. Let’s not get into yet another XaaS. We’ve got SW as a Service, Engadget wants to add Hardware….what about Services as a Service….oh wait. I’m sticking to what it truly is….which is leasing.
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It seems like the wireless carriers are already headed in this direction. I just bought a $700 laptop for $149 plus $40 per month for the data plan. Take that one step further, no upfront and a slightly larger monthly with automatic upgrades say every 12 months and you are there!
While I HATE seeing my monthly budget eaten up with car leases, house payments, TV service etc. on the business side my perspective is different. No upfront and a steady monthly I can count on? BRING IT ON!
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HaaS is great for consumers. Since enterprises want to get away from buying devices all together the question we have is – will HaaS be embraced by enterprises to purchase devices for employees ? We believe enterprises will let employees bring their own device BYOD. To provide enterprise access on personal devices enterprises will use a secure container strategy. This means HaaS is not really for enterprises…
I am stil enterprises use HaaS to get devices for employees ?
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You’re dead on – leasing IT infrastructure is nothing new. You can formally lease PC’s, but with data/service plans, you now have a motivated 3rd party who is more than happy to (essentially) quasi-finance a substantial share of the hardware cost. Yea, that’s “subsidization”, but tomato, tomato. Mobile operators and their customers have a delightful and profound addiction to giving/receiving this subsidy and financing scheme. In fact, as more services and facilities move to the cloud, there’s only increasing motivation for said 3rd party to comp you that shiny little device
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Hardware as a Service and Enterprise Mobility
Engadget got all excited (as they do with all Apple and Google announcements) and proclaimed it
….which, of course, got me thinking about the enterprise mobility perspective.
First off, this business model is nothing new or revolutionary. What Engadget is so naively calling Hardware as a Service, has been called in prior times (I feel like it may have originated in the mesozoic era) LEASING.
Side note….don’t you love how we continuously try to rebrand things that have been around for ages…you know, like The Cloud?
Leasing of IT infrastructure - as I just mentioned – is nothing new. In fact, the same can be said from an enterprise mobility perspective. It’s not a new concept. In fact, I know of a couple of massive deals where this has been occurring for some time. The question of course is, what does it take for this concept….you know, LEASING….or Hardware as a Service…..or even Mobility as a Service….to gain critical mass?
Remember back in the 1970s when you would actually rent your phone from your national carrier? I fondly recall the big red rotary phone my parents had in our kitchen. Something didn’t work with it….a technician would come replace it. They even switched it as some point to a touch tone beige colored device. At some point though, phones got so cheap that people started buying them on their own because they couldn’t justify the cost of the device when you could buy one for less that lasted longer.
Things are slightly different today. The big red phone I had in my parents’ house was not evolving at a frenetic pace. Today, there are new mobile devices coming out what feels like every week. Certainly, we see some sort of technological leapfrog occurring every three months or so….so my sense is there could perhaps be a unique proposition coming from the carriers.
What if they started offering an unlimited bundle where you paid no upfront costs for the device….but instead paid say, $10/month on a two year plan, or $20/month on a 12 month plan….because so many of us want to get the latest gadget as soon as it’s available. The cool part is that the devices could probably be re-leased (at say, $5-10 month) for people who don’t want or need the latest device (assuming it’s in good shape). Throw in a tablet for another $20/$30 per month and you’re a mobility monster! Now imagine either the carrier or one of its partners managing all the devices for your firm.
This is mobile outsourcing people! You own none of the physical assets, but get to use them for the specified duration of the contract. Take that one step further and think about it at scale….in combination with a mobile unified communications solution. You don’t need that desk phone anymore. Does this have legs?