HP Introduces ‘Device as a Service’ — Yes, DaaS Really IT!

PC xy/Adobe Stock

Hewlett-Packard recently announced a new solution offering called Device as a Service (DaaS). According to the announcement, “HP DaaS allows customers to pay one price per seat for their PCs on a monthly basis over a multi-year period. Within that subscription, they can receive the latest technology and customized services and support from HP, including PC configuration and installation, data migration, onsite support and technology recycling.” The DaaS program can also scale globally, HP said.

Procurement and management of an enterprise’s “fleet” of devices (PC, displays, laptops, tablets, etc.) is notoriously challenging and can be a breeding ground for inefficiencies and leakage. HP’s DaaS value proposition is to bring improvement on all sides: cost, logistical complexity, user productivity and satisfaction. Whether that is true or not is something that IT category managers will work out given the conditions and requirements of their own enterprises. But the proposition is a provocative one.

The service concept, formerly called PC as a Service (PCaaS), is several years old. However, up until recently there has been little or no traction. As reported in the HP press release, “Offerings, such as HP DaaS, are resonating with IT buyers as an alternative to what can be a financially challenging and time consuming venture in today’s environment according to industry analyst firm IDC. In a recent study, just over 40% of participating IT decision makers revealed that they engaged in or were considering subscribing to a PC as a Service model in the future.”

Another source, TechPinions, wrote that, among the IDC respondents, “the top three selected reasons included the ability to (1) “deploy only the PC assets they need, based on workload,” (2) “transition PC procurement from CAPEX to OPEX,” and (3) “reduce IT workloads by offloading procurement and management to a third party.”

All of the data above would seem to indicate, at the very least, that interest levels and vendor responses are increasing, suggesting that IT category managers — if they are not already — should be paying attention to their IT stakeholders and not get blindsided.

We and others often talk, in a trendy manner, about procuring things “as a service” — something that is really an extension of the supply-side business concept of servitization that has been solidly embraced by manufacturers for many years now. So, if nothing else, the HP program is a material example of what seems to be a very real trend, of which my colleague Pierre Mitchell has said:   

In the emerging digital economy, it should be apparent that two forces are having a massive impact on nearly every industry: digitization and externalization. These forces feed each other and the broader trend of servitization, where everything is becoming an information-based or information-augmented service. So, if all of the assets around us are getting digitized, outsourced and consumed as a service, then corporations better have their act together to orchestrate these new value chains. And who are the internal protagonists who should be leading the charge to digitize and tap third-party service providers in this everything-as-a-service (XaaS) world? You guessed it: IT and procurement.

To read more, follow the link to Pierre’s article, Procurement and IT: Digital Partners or Indifferent Siblings?.

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