Six financial benefits of DaaS

In this article, we demonstrate why financial leaders should consider the financial benefits of DaaS (Device as a Service) for their future IT purchasing.

The economy, Brexit, enforced transformation, a distributed workforce, and the need to meet sustainability targets will all continue to put pressure on business finance. In response, financial leaders need to become adept at finding new ways to go further than just balancing the books. 

All businesses are investigating smarter ways to manage company finances. Key among these are discovering better ways to finance purchases. Previously, organisations have moved large capital investments, such as industrial equipment and vehicles to leasing arrangements.

More recently, larger items of technology and software have transitioned to ‘as a service’ models. Therefore, moving these purchases to monthly operational expenses to lessen the strain on cash flow, avoid depreciation, and gain more flexibility. But in the face of even stricter trading conditions, finance leads need to look even further. Creating more efficient purchasing. So the financial benefits of DaaS are a logical next step to moving more IT spend to OpEx.

Microsoft as a surfaceWhy are the financial benefits of DaaS so relevant now?

With the abrupt move to mass remote working caused by the global pandemic. Many organisations had to scramble to meet the needs of an exclusively remote workforce. Now, as business leaders look to the future, new financial decisions need to be made in respect of supporting remote workers. 

With a workforce choosing to opt for a more blended way of working, businesses can reduce their reliance on traditional, and often expensive, office space. Rationalising the number of office locations and their size will create a significant opportunity.

Yet, finance leaders must not overlook the need to make sure that their remote workers can maximise their productivity, feel supported, and remain motivated. The key to this is ensuring that they have the right personal technology – devices optimised for an agile way of working, that are reliable, familiar, and robust. Equally, as with other business purchasing, devices can be an operational expense rather than a capital investment.

Research by Gartner shows that the financial benefits of DaaS have made this purchasing category one of the fastest-growing, with spending during 2020 almost doubling worldwide to $1.2bn. In 2021, it is predicted this figure will reach $1.9bn; and  $2.5bn in 2022.

Furthermore, analyst firm IDC says 40% of businesses are expecting, or have already begun discussions to move IT purchasing to a DaaS per-user, per-month subscription model.

Microsoft as a service

The six financial benefits of DaaS

Finance leaders need to understand the six financial benefits of DaaS. These are;

  • Move unpredictable device CapEx spend into predictable, sustainable payments and give a greater return on investment
  • Monitored usage and reporting will make sure you only pay for what you actually use
  • Regular refresh cycle ensures optimum asset management, never going past warranty
  • Manage effective purchasing of devices in a rapidly changing and volatile marketplace by moving to a managed service model
  • Ensures your employees always have the latest device technology to optimise productivity and performance
  • Removes the time and cost of device management from your IT team.

“DaaS responds to increased demand and caters to customers’ preference for elastic, pay-as-you-go consumption models.” 

Sid Naq, Research Vice President, Gartner

DaaS and Microsoft Surface

The financial benefits of DaaS are many. But which devices should you buy? Choosing the right manufacturer is also critical to its overall success.

The Microsoft Surface for Business range is designed and tailored specifically for commercial organisations. Listening to the evolving needs of business users means there is a Surface device for every user in your organisation. From the Surface Laptop Go which provides a lightweight, yet robust solution for remote workers to the more agile Surface Go 2 which doubles as both a laptop and tablet in one, yet still provides the full power of Windows 10.

From a finance perspective, the versatility provided by a wide range of high performing devices, all designed to suit different work styles and needs, helps to remove the need for multiple vendors. Enabling one provider to service the needs of the whole organisation.

Also, the subscription-based Office 365 is the system of choice for many organisations. So aligning the device technology to the same vendor together on a common subscription-based ‘as a service’ managed model makes financial sense.

Microsoft Surface as a Service from Ricoh

Selecting the right partner to provide and fulfil the DaaS subscription is as essential as the devices themselves. Following new innovation in the Microsoft and Ricoh partnership, Microsoft Surface is now available as a comprehensive DaaS subscription model from Ricoh.

Microsoft partnered with Ricoh because of its strong history in the IT services sector. Demonstrating expertise in being able to propose the right people-centric solutions for customers. Also, with its finance arm, Ricoh Capital customers benefit from being able to bundle an entire IT transformation solution, which incorporates DaaS, into a financial model of cost per user, per month.

“Ricoh has the reach and level of service to take customers on a transformation journey from the top down. It understands the drive and proposition for transformation and Microsoft is looking for partners that see this vision.”

Tom Cripps, Microsoft

The Microsoft Surface and Ricoh partnership will enable organisations to pursue their workplace transformation strategies in a cost-efficient, sustainable, and streamlined way. Enabling organisations to achieve their goals whilst also realise the financial benefits of DaaS.

Read our Executive White Paper

To learn more about the financial benefits of DaaS and how this model of purchasing makes more meaningful cost-efficient sense for business, read our Executive White Paper

About Ricoh UK

Ricoh is empowering digital workplaces using innovative technologies and services, enabling individuals to work smarter. For more than 80 years, Ricoh has been driving innovation. Leading provider of document management solutions, IT services, communication services, commercial and industrial printing, digital cameras, and industrial systems.

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John Chambers

Director - IT, Communication & Business Process Services Ricoh UK

Read all articles by John Chambers