How Device as a Service (DaaS) Delivers Cost Savings for Your Business

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 with 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.

The full cost of managing devices in-house

Managing mobile devices in-house comes with a range of upfront, ongoing, and hidden costs that collectively make up the total cost of ownership. These expenses range from the cost of devices themselves to ongoing management costs, to potential losses due to mismanagement or data breaches.

Here’s a breakdown of how much it costs to manage mobile devices in-house.

High initial capital expenditures (CapEx)

According to the Samsung report, the average expense per device is around $652 USD, amortized over an approximate 2.5-year lifecycle. This upfront cost is almost entirely lost, as trade-ins only pocket about $48 USD per device. This is the initial CapEx cost of mobile devices, with additional investments like device management tools and IT staff salaries rounding out the total cost profile.

This CapEx becomes heavier as the business scales and more devices are added to the fleet. Every few years, as mobile devices become dated, companies will need to do another round of updates, which further increases costs. This is in addition to the cost of accessories, extended warranties, and initial setup services.

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 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 time and opportunity costs

Routine management tasks, like updating, troubleshooting, and device tracking, take time away from core IT functions, as staff are constantly diverted to operational support.

These tasks not only drain valuable IT time but also limit the department’s ability to focus on strategic initiatives, affecting overall growth and innovation potential. This demand tends to increase as the device fleet scales, compounding opportunity costs for in-house teams.

What is Device as a Service (DaaS)?

Device as a Service (DaaS) is a subscription-based solution where companies lease devices, such as laptops, tablets, and smartphones, along with full lifecycle management services from a provider.

DaaS allows organizations to shift from large upfront capital expenses to predictable, manageable monthly operating expenses, making it easier to scale device fleets according to business needs.

Key features of DaaS include:

  • Comprehensive device lifecycle management. DaaS providers handle everything from device provisioning and configuration to ongoing maintenance, support, and eventual decommissioning.
  • Predictable monthly fees. With a set monthly payment, companies benefit from transparent budgeting and can avoid unpredictable costs associated with device repairs, upgrades, and replacements.
  • Centralized support and helpdesk services. DaaS typically includes 24/7 support, allowing IT teams to resolve device issues quickly and efficiently without heavy in-house involvement.
  • Automated updates and compliance monitoring. Providers ensure that all devices receive timely software updates and security patches to maintain compliance and reduce security risks.
  • Scalability and flexibility. DaaS allows companies to easily add or reduce devices based on current workforce needs, making it ideal for businesses with fluctuating staffing or expansion plans.

This model shifts the burden of device management from internal teams to specialized providers, helping companies reduce costs, improve productivity, and focus on core operations.

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.

With DaaS, companies can bypass these initial expenses, instead paying a manageable monthly fee that includes all aspects of device management—from provisioning and support to software updates and lifecycle management. This OpEx model allows businesses to align device costs with operational budgets, simplifying financial planning and freeing up capital for other investments.

Additionally, DaaS offers flexibility, allowing companies to scale up or down according to workforce needs without the hassle of large-scale hardware purchases. By shifting to DaaS, organizations gain financial agility, making device management more sustainable, predictable, and adaptable to business changes.

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.

In general, you should look for a DaaS provider that offers:

  • Scalability and flexibility. Choose a provider that allows easy scaling up or down according to business demands. Look for flexible options, such as increasing device numbers quickly during peak seasons and reducing them afterward without penalties.
  • Comprehensive lifecycle management. Opt for providers that manage the entire lifecycle of each device, from deployment and maintenance to secure end-of-life decommissioning. Effective lifecycle management reduces IT burden and ensures devices remain current and secure.
  • Security and compliance standards. Prioritize providers that enforce strong security measures like encryption, multi-factor authentication, secure decommissioning, and compliance with industry standards and local regulations. High security standards protect sensitive data and help meet regulatory requirements.
  • Predictable, transparent pricing. Transparent monthly pricing helps prevent unexpected costs. Look for a provider that includes all services—updates, replacements, and helpdesk support—in a single, predictable fee to simplify budgeting.
  • 24/7 support and proactive monitoring. Comprehensive support is crucial to reduce downtime. Providers offering round-the-clock technical support and real-time monitoring can help resolve issues promptly, minimizing disruptions.
  • Device customization and pre-configuration. Providers offering pre-configured devices save IT teams time during deployment and ensure a consistent setup across devices. Customization to match specific organizational needs improves employee productivity right from the start.

Ultimately, you want a DaaS provider that has both the right breadth of services for your needs, and the right level of expertise and technical experience to effectively manage your fleet today and in the future. Project where your company will be in five years, and frame your screening process around those requirements. This will ensure that you can partner and grow with your DaaS provider of choice, without having to make a leap again in the short term.

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.