As the adoption rate for the Internet of Things (IoT) continue to grow, so does the rate at which technology shifts. It is driving innovation and creating new business models because of increased connectivity and automated processes. From that, a truly disruptive idea has stepped forward and is changing the conventional way of thinking or operating. For IoT, moving devices that powers the data economy from a purchase model to one where it becomes a service.
Major U.S. cellular network providers are putting this business model into practice today. Think of the mobile device, and how an end user is able to upgrade or switch based on the contracted timeframe. It is essentially a service model that gives customers the ability to acquire the newest and latest mobile technology available. Apply this to IoT; it becomes a bold concept for organizations who have become accustomed to buying and servicing their own devices.
What is Device-as-a-Service (DaaS)?
Device-as-a-Service or DaaS is a business model that enables a capital efficient way for telematics service providers and system integrators to on-board, and manage devices through the lifecycle of their deployments, along with a host of micro services that are available to end customers.
What are the main benefits of a DaaS model?
- Adjusting costs from capital expenditures to an operating expense
- Smaller to no initial investment because the device(s) are not purchased
- Future-proofed due to hardware updates and upgrades being included
- Compliance to security policies and protocols through a standardized device infrastructure
- Reallocation of staff resources from device support to other key projects
Organizations can scale quickly with low upfront capital cost by using DaaS for their IoT connectivity. Bundling device, support services, and micro services into a simple monthly fee over the life of the contract. DaaS enables intelligent connectivity.
Device-as-a-Service when paired with Software-as-a-Service or Platform-as-a-Service helps resource-constrained organizations focus on their operations without having to worry about outdated technology. The full lifecycle device management is outsourced where the service provider handles device integration, updates, troubleshooting and security. Freeing up the bandwidth for organizations to use their newly available resources for strategic initiatives to grow their bottom line.