Around 98% of schools in the US own their computers and have embraced technology by including it in the curriculum. However, the schools that cannot afford to buy in bulk are slowly shifting to Device-as-a-Service technology. But what are the benefits? What will you lose while dabbling in this business? Scroll below to understand the pros and cons of this industry.
Pros
Customization
Some clients might need bigger devices like computers and desktops, while others might need tablets or more on-the-go devices. Both sides of the coin can be addressed—you can always get products according to your client’s needs and still receive monthly instalments on time. Again, it is all up to how you customize it.
Contractual Obligation
Your clients are obliged to keep your devices intact and ineffective use so that you can lease them out longer. This reduces your overhead and repair costs, along with any costs encountered to replace your device entirely.
Long-Term Profits
Say your client continues to lease your products for an extended period. You can easily expect it to cover and go beyond what you originally paid for your entire product. Now multiply that by however many products you invested in, and consider the number of returns you will get on it — it’s a win on both sides of the coin.
Complete Control Over Device
It is a simple rule: your devices, your control. Clients cannot install third-party software, and damage applications without administrator permission. If your client is an educational institution, you can always ensure that you are blocking viruses and malware-infested websites.
Cons
Scale
Scalability is an important consideration for any business. In terms of that, DaaS as a business has very little scalability. For instance, if your business grows or condenses, you will have to sort through and manage inventory to mobilize your products because there is constant back and forth between your clients with respect to their needs.
Cost at the Beginning
You will encounter significant costs at the beginning of your business — buying the actual product, installing necessary applications, investing in advanced security software, and more. Considering both sides of the coin, it might take some time to receive that return on investment and to break even post that.
Setting up Security
It has become obvious in today’s vastly connected world that security is becoming an increasing threat. To protect your client’s data, you as a service provider will have to invest your time and money thoroughly to avoid any sort of data breach. This includes investing in data encryption, regular software updates, and remote wiping capabilities.
Rapidly Advancing Devices
As a service provider, you must make sure that the provision of the latest technology is imperative. Your clients might not want to take up devices that do not support the latest learning software or technology. Moreover, you will encounter significant costs changing from your last product to a new one.
A final addition to this is the factor of trust-building. This raises the question of how you as a service provider build that trust with your client. This will also determine if they want to continue to invest in your service and will emphasize their relationship with you to make this decision. Hence, as a business, you can consider these pros and cons to make sure that your service remains profitable while providing value to your customers.
