D&H Distributing is moving to make it simpler for channel partners to provide customers with a vendor-agnostic approach to paying monthly for endpoint devices rather than have to incur capital costs upfront.
The “Easy DaaS IT” device-as-a-service program from D&H Distributing enables traditional resellers to provide end customers with notebooks, workstations, desktops, thin-clients and tablets via a multi-year lifecycle agreement, says Peter DiMarco, vice president of VAR sales at D&H Distributing.
All the procurement, deployment, device management, services, and lifecycle management are bundled into a monthly fee, adds DiMarco.
DaaS consumption models are gaining popularity because more end customers want to treat IT as an operational rather than capital expenditure. In addition, a DaaS program makes it simpler for end customers to upgrade systems across the lifecycle of a contract versus trying to depreciate equipment when its acquired as a capital expense. It also creates an opportunity for solution providers to start generating recurring revenue, notes DiMarco.
The Easy DaaS IT program offers both 24- and 36-month terms. At the end of the contract, the end-user will have an option to either return the devices or upgrade them to maintain an optimally functional environment. The program also includes a crucial “Flex-up/Flex Down” provision, through which the subscription holder can increase or reduce the size of their fleet of devices by up to 10 percent after the first 12 months of the contract.
“This gives the end customer a little flexibility,” says DiMarco.
Distributors are in a much better position to provide the financing for DaaS program because it gives solution providers access to a vendor-neutral program. Most customers don’t want to standardize on a single vendor, and solution providers often prefer to mix and match equipment from vendors based on the relationships they already have, notes DiMarco. The financing for the program is provided by via a third-party lender that D&H Distributing has arranged, says DiMarco.
It remains to be seen how well end customers take to DaaS programs. The most significant issue often isn’t the term of the program, but rather all the inertia that has built up around how PCs and devices are acquired by businesses. But as the rate at which those devices effectively become obsolete thanks mainly to software updates being delivered faster than ever, it’s not more a matter of time before customers determine owning equipment doesn’t have nearly as much inherent value as it once did.
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