Starting a business is a big step for entrepreneurs in the IT industry. However, this comes with a myriad of challenges, most of which relate to capital and resources. Among them is the availability of proper equipment. The equipment used in a company determines how smoothly the business will run and must be up to date to ensure success. Because acquiring the proper equipment is expensive, companies often resort to what is called ‘Hardware-as-a-Service’ (HaaS). It’s important to consider all of the advantages of this solution before making a decision, and we’ve compiled such a list here.
Upfront Capital
The main benefit of HaaS is that it enables businesses to conserve on upfront capital expenditures. By replacing these high costs with a lease structure and low monthly payments, resources can be redirected toward other budget items. As a result, the business will have more resources that it could have otherwise used to purchase the computers.
More modern hardware
For businesses with outdated equipment, HaaS is an easy workaround for them to upgrade their IT hardware. A service provider can supply the latest equipment at a lower monthly cost, and when their client’s machines age, upgrades can be provided without fear of incurring additional costs. By choosing this route, SMBs won't have to deal with disposing their old equipment. The service provider will take full responsibility for that.
Taxes and accounting
When it comes to tax payments, businesses that opt for HaaS are also at an advantage. Equipment will be listed as a service from a vendor rather than a capital expense -- thereby decreasing their tax liability. SMBs will enjoy all the benefits of cutting-edge equipment, without the taxes that usually accompany it. HaaS allows companies to get the equipment they need without running the risk of incurring more debt. Having a balance sheet with less debt is beneficial to the business, as it provides the business with secure financial services to expand.
However, when it comes to HaaS, it is important to consider what sort of technology the business needs. For example, if there is a substantial need for equipment, the best option is to choose HaaS rather than incur debt from purchases. For more information on managed IT solutions and outsourcing your technology difficulties to the experts, contact us today.