Instead of owning expensive hardware, software, and systems, small and mid-sized businesses (SMBs) can leverage Technology-as-a-Service (TaaS) procurement models. These models unlock enterprise-grade capabilities that are more affordable and flexible for companies that would have been priced out of these advanced technologies and services not long ago.
Among the most popular options are Hardware-as-a-Service (HaaS), Desktop-as-a-Service (DaaS), and Software-as-a-Service (SaaS). While all three fall under the “as-a-service” umbrella, they each deliver unique benefits depending on your business goals, budget, and IT strategy.
As-a-Service Models: What they are and what they offer
Let’s start by taking a look at the three main types of as-a-service offerings:
Hardware-as-a-Service (HaaS)
Hardware-as-a-Service allows your business to essentially lease physical IT equipment like servers, routers, and workstations from a managed IT services provider (MSP). Rather than purchasing equipment outright, you pay a monthly fee that covers hardware, setup, maintenance, and support. This model is ideal for businesses that want enterprise-grade technology without high procurement and maintenance costs.
With HaaS, you get consistent performance, up-to-date hardware, and immediate replacements when devices fail. Plus, your MSP handles everything, freeing up both capital and time.
Desktop-as-a-Service (DaaS)
Desktop-as-a-Service provides cloud-hosted virtual desktops that your employees can access from anywhere, on any device. This setup gives your workforce mobility and flexibility, because no matter which device they log in to, their apps, data, and configurations are just as they left them.
Updates, security patches, and performance monitoring for DaaS solutions are managed by your MSP.
Software-as-a-Service (SaaS)
Software-as-a-Service delivers applications over the internet via a subscription model. Instead of buying software that needs to be replaced every year or so, you pay a low monthly fee for a program that is continually updated, upgraded, and improved.
Most SaaS platforms include built-in security and automatic updates, ensuring optimal performance with minimal effort from your IT team.
Total cost of ownership (TCO) for each model
One of the biggest advantages of as-a-service models for SMBs is cost efficiency. But, each of these models does something different, and thus have differing price points.
- HaaS spreads the cost of physical hardware over time, eliminating the need for large capital expenditures. While monthly costs can add up over several years, HaaS still provides better long-term value because it removes the burden of managing equipment life cycles, and you pay a flat monthly fee for installation, maintenance, and upgrades.
HaaS costs the most, but you also get the most.
- DaaS shifts your desktop infrastructure from on-premises to the cloud, so it may appear costlier upfront than traditional PCs. However, DaaS often reduces TCO by minimizing IT support, maintenance, and security costs, which are borne by your MSP.
DaaS is the cheapest of these three models, but provides the least amount of capabilities, which is fine if you don’t need much hardware.
- With the SaaS model, you pay only for the number of users or features you need, and there’s no investment in hardware or server infrastructure. The predictable monthly or annual subscription fees make budgeting easy, but the more SaaS solutions you need, the more monthly fees you pay.
Still, compared to purchasing and maintaining perpetual software licenses, SaaS offers significantly lower TCO for most small businesses and better flexibility.
The best situations for each model
Each as-a-service model serves a specific business need. What’s best for you depends on your company’s size, structure, and IT priorities.
- HaaS is ideal if your business relies on a large amount of on-premises equipment or if you require consistently up-to-date hardware without large capital outlays.
- DaaS works best for companies with remote or hybrid teams that need secure, consistent desktop access from anywhere.
- SaaS is the go-to solution for companies looking for agility, simplicity, and cost savings. And because there are apps available to suit businesses of all sizes, work models, and industries, it’s perfect for businesses that need specialized software and don’t want to worry about managing installations or updates.
Want to find out which as-a-service model is ideal for your business and how much time and money you can save? Contact outsourceIT for a FREE consultation, and we’ll provide a customized roadmap for more affordable IT, better capabilities, and higher efficiency.
