The need to manage a fleet of mobile devices is inescapable for most modern organizations. These are the tools companies use to connect their employees, create seamless customer experiences, and manage day-to-day operations efficiently. But while mobile device management is a necessity, the associated costs are significant.
According to a recent Samsung report, 95% of survey respondents said that cost was a significant factor in how they manage their mobile device strategy. It’s no wonder, given that the average total cost of a mobile device per employee was about $1,200 USD per year, with management alone making up $458 of that.
Device as a Service (DaaS) has emerged as a third-party service offering that’s effectively reshaped how companies manage their mobile fleets, and how they pay for that management. Specifically, DaaS helps to convert high upfront capital expenditure (CapEx) associated in-house management into predictable operating expenditure (OpEx), which makes fleet management more efficient and scalable.
This article will explore how DaaS facilitates this shift, why that’s beneficial, and what to look for when selecting a DaaS provider.
Key Takeaways
- Device as a Service (DaaS) converts the $1,200 USD average annual per-employee cost of in-house mobile device management into a predictable monthly operating expense ranging from $30 to $80 USD per device.
- In-house device management carries hidden costs including $652 USD average device cost, $60 annual MDM software fees, and 20+ weekly IT hours spent on reactive support for a 500-device fleet.
- DaaS providers handle full lifecycle management—provisioning, maintenance, security updates, and secure decommissioning—freeing IT teams to focus on strategic initiatives instead of operational tasks.
- Canadian enterprises evaluating DaaS providers should verify PIPEDA, PHIPA, and Law 25 compliance, along with established carrier relationships and in-country staging facilities to reduce deployment timelines.
What Is Device as a Service (DaaS)?
Device as a Service (DaaS) is a subscription-based model where businesses lease mobile devices—laptops, tablets, rugged handhelds, smartphones—bundled with full lifecycle management from a third-party provider for a fixed monthly fee per device. Instead of large upfront capital purchases, organizations pay predictable operating expenses that include provisioning, maintenance, support, security updates, and end-of-life decommissioning. This model allows organizations to scale device fleets up or down without additional capital outlays.
Key features of DaaS include:
- Full lifecycle management: Provisioning, configuration, maintenance, and secure decommissioning handled end-to-end
- Predictable monthly fees: Fixed per-device pricing that eliminates surprise repair, upgrade, and replacement costs
- 24/7 helpdesk support: Centralized technical assistance reduces internal IT burden
- Automated updates and compliance: Timely OS patches, security updates, and policy enforcement across the fleet
- On-demand scalability: Add or reduce devices as workforce needs shift—no bulk purchasing required
This model shifts device management from internal teams to specialized providers, reducing costs and freeing IT to focus on strategic initiatives.
The Full Cost of Managing Devices In-House
Managing mobile devices in-house carries a total cost of ownership that averages $1,200 USD per employee annually, according to Samsung research. This figure includes hardware, MDM software, IT labour, and the often-overlooked costs of security incidents and employee downtime.
High Initial Capital Expenditures (CapEx)
According to the Samsung report, the average expense per device is approximately $652 USD, amortized over a 2.5-year lifecycle. Trade-ins recover only about $48 USD per device—meaning businesses lose the vast majority of their hardware investment.
Beyond the device itself, initial CapEx includes:
- MDM software licensing: Platforms like SOTI or 42Gears require upfront or annual fees
- IT staff allocation: Time spent on procurement, staging, and configuration
- Accessories and warranties: Cases, charging cradles, extended coverage
- Fleet refresh cycles: Full replacement every 2-3 years as devices age out
These costs compound as the fleet scales, with each refresh cycle requiring another round of capital investment.
Ongoing Maintenance and Replacement Costs
After the initial purchase, device maintenance and replacement incur additional, ongoing costs. Regular upkeep, including battery replacements, repairs, and device refreshes, ensures devices remain functional and updated, but this can be a persistent drain on resources.
According to Samsung, companies can expect to pay around $60 per year per employee for Mobile Device Management (MDM) software to help maintain their fleet. This cost also includes periodic upgrades to keep devices compatible with emerging software and hardware standards.
Security Security Risks and Data Breach Costs
Security vulnerabilities represent a significant financial risk, particularly when device security is inadequate. This is a potential cost associated with in-house management, and serves as something of a gamble that your in-house team is equipped enough to handle all potential threats.
With an average data breach costing businesses around $5 million per incident when it involves compromised credentials or shadow data, these risks are serious considerations for companies managing devices in-house.
Employee Employee Time and Opportunity Costs
Routine management tasks—OS patching, carrier provisioning, SIM swaps, password resets, lost device tracking—pull IT staff away from strategic work. A 500-device fleet can easily consume 20+ hours weekly in reactive support alone.
This operational drag limits IT’s capacity for cybersecurity initiatives, infrastructure modernization, and digital transformation projects. The opportunity cost compounds as device counts grow.
How DaaS Facilitates a Shift From CapEx to OpEx
Through its outsourced management model, DaaS transforms device management costs from CapEx, which require significant upfront investment, to OpEx, with predictable monthly fees.
Here’s how:
Reduces Upfront and Replacement Costs
DaaS minimizes large upfront costs by offering devices on a subscription basis. Instead of hefty initial investments in equipment, businesses pay a manageable monthly fee, which includes routine updates and device replacements.
This allows companies to keep devices current without new capital outlays, reducing financial strain and helping them stay within budget over time.
Expedites Device Staging and Deployment
DaaS providers handle configuration and setup, streamlining device deployment. Devices arrive pre-configured, which accelerates onboarding and ensures employees are productive from day one.
Quick, efficient deployment eliminates delays, making it easier to scale operations, even for a remote workforce.
Lowers IT Workload
By outsourcing maintenance, updates, and troubleshooting to the DaaS provider, companies relieve their IT teams from time-consuming support tasks.
This frees up IT resources to focus on strategic priorities, such as cybersecurity initiatives and infrastructure improvements, maximizing IT productivity and aligning their work with higher-value projects.
Minimizes Security and Compliance Expenses
DaaS enhances security by ensuring devices are updated regularly with the latest security patches and compliance protocols.
Providers often include encryption, multi-factor authentication, and continuous monitoring, which mitigates the risk of data breaches and the associated financial and reputational costs.
Reduces Device Downtime and Improves Employee Productivity
Devices are continuously monitored, maintained, and replaced when necessary, minimizing disruptions from device malfunctions.
Proactive device management ensures high performance and reliability, helping employees maintain productivity and reducing the need for downtime-related workarounds.
The net effect: DaaS converts unpredictable hardware investments into a fixed monthly operating expense that scales with your workforce and frees capital for strategic priorities.
Key Considerations When Choosing a DaaS Provider
Because DaaS providers act as a turnkey, end-to-end solution provider, it’s important to select one that is able to manage all stages of your mobile device lifecycle now, and as your company grows.
When evaluating DaaS providers, assess these core capabilities:
| Capability | What to Look For |
|---|---|
| Scalability | Add or reduce devices without penalties; rapid provisioning for seasonal spikes |
| Lifecycle management | End-to-end coverage: staging, deployment, maintenance, secure decommissioning |
| Security & compliance | Encryption, MFA, PIPEDA/PHIPA compliance, certified data wiping |
| Pricing transparency | Single monthly fee covering updates, replacements, and support—no hidden charges |
| Support model | 24/7 helpdesk, proactive monitoring, guaranteed response SLAs |
| Pre-configuration | Devices arrive staged with MDM enrollment, apps, and security policies applied |
For Canadian enterprises, also verify the provider’s familiarity with PIPEDA, PHIPA (healthcare), and Quebec’s Law 25 requirements. A provider with established Canadian carrier relationships (Rogers, Bell, TELUS) and in-country staging facilities can significantly reduce deployment timelines. Project where your fleet will be in five years and evaluate providers against those future-state requirements.
How PiiComm Lowers CapEx With Turnkey DaaS Support
PiiComm’s device as a service (DaaS) offering is a fully managed, turnkey solution in which a customer subscribes to an all-inclusive bundle of hardware, software, and lifecycle services for a monthly fee per device. This is an increasingly popular model for companies of all sizes, and ensures that you receive our full suite of services at all stages of the mobile device lifecycle.
Key benefits of PiiComm’s DaaS service include:
- Cost certainty, with a pre-set monthly fee per device
- Ability to scale device volumes up or down quickly
- Expert guidance from our 16+ years of experience
- On-site technicians and purpose-built facilities at the ready
- 24/7 service desk to support end-users
- No capital investment to equip your workers with the best tech
- Lower total cost of ownership
Interested in learning more about PiiComm’s device as a service offering? Read our service page, or contact us today to chat about your options.
