Hardware as a Service is a purchase option that enables customers to rent expensive kit at an affordable monthly cost under flexible monthly commitments.

It is the model of consumption of the future. It allows businesses to get the solution they need, without the obligations of purchasing. No wasted investments, no worries about keeping things updated, no bonds with physical equipment.

It’s appealing to businesses looking to acquire high end kit without having to afford the large upfront costs.


Hardware as a Service means: no more obligation to buy physical things doomed to become old in a few years. The model allows businesses to be flexible with the tech that is essential to their business in a way that has never previously been possible. Hardware as a Service is a subscription service which means that, depending on the terms, you can cancel at short notice and hand back the kit.


XYZ Ltd has 70 staff in their office, all using desk phones and other IT hardware. A pandemic hits and XYZ Ltd reduce their staff to 35, all of the remaining staff are told to work remotely.

As a Hardware as a Service subscriber, XYZ Ltd simply return the equipment of the 35 dismissed staff to their provider (within accordance of their previously agreed terms).

They also require some hardware changes to allow the remaining 35 staff to work from home efficiently. Their provider exchanges the existing equipment for what is needed and XYZ Ltd are now working remotely.

To adapt to the sudden pandemic, XYZ Ltd has halved their monthly Hardware as a Service subscription and set-up their remaining staff with the necessary equipment to efficiently work remotely. They are not burdened with 35 staff’s worth of depreciating equipment, nor the additional expense of setting up remaining staff to work remotely.

Once the pandemic is over, XYZ Ltd increase their staff back to 70 in the office, their provider supplies them the latest equipment to meet their requirements and the cost of their Subscription returns to pre-pandemic level.

Peace of Mind

The nature of a Hardware as a Service agreement means all equipment is covered by an insurance policy. This includes everything that could damage the investment being made. In turn, customers can stop worrying about the hardware in their company and finally just use it.

The cost of maintenance and troubleshooting are also built-in to the HwaaS agreement. If the hardware breaks down or becomes outdated, the provider is responsible for decommissioning it and replacing it.

A recent survey shows that 56 % of IT professionals believe HwaaS enables the IT department to focus on more strategic projects. Only only 17 % believe it puts IT jobs at risk.

The Takeaway

Hardware as a Service makes financial sense for any business that replaces devices regularly. It can be a cost-effective way for businesses to provide employees with high-end equipment.

By entering a Hardware as a Service agreement all troubleshooting and maintenance costs are included. Devices are repaired and replaced limitlessly without incurring unexpected expenses.

Hardware as a Service is the model of consumption of the future, the contract durations and terms are highly flexible. It is worth noting that HwaaS can be saddled with unfavourable exit or buyout clauses, should you wish to end the contract early. So it’s important to come to an agreement with your provider that you are comfortable with.

If you’d like to know more about how a Hardware as a Service agreement could be of benefit, specifically regarding your business telecoms. Get in touch with Ocean Telecom!