Mobile devices are a non-negotiable tool for virtually all businesses today. They connect employees, enable them to collaborate and work in real-time while physically dispersed, and serve as critical tools that drive operations and key business outcomes.
They’re also incredibly expensive, with 95% of companies telling a recent Samsung survey that cost was a major factor and concern in how they manage their mobile device strategy. It’s no wonder, given that the average total cost of a mobile device per employee is $1,200 USD per year. That includes both the hardware and management fees.
Maintaining and improving mobile device performance while simplifying operational complexity and reducing costs would be top of the list for most IT and senior leadership teams. But managing mobile device fleets at scale is time-consuming and expensive, making in-house management a flawed option for organizations with this goal.
The other option—one that enables better performance while also reducing complexity and costs—is the Device-as-a-Service (DaaS) model. This article will explore the concept of DaaS, explain why it’s such a valuable tool for organizations with complex mobile device fleets, and offer advice on how to select a suitable provider.
Key Takeaways
- Device-as-a-Service (DaaS) is a subscription model that bundles mobile device hardware, software, and full lifecycle management into a predictable monthly fee, shifting costs from capital expenditures to operational expenses.
- DaaS providers handle the entire device lifecycle—strategic sourcing, staging, deployment, ongoing support, and secure decommissioning—freeing internal IT teams to focus on strategic initiatives rather than device management.
- Organizations using DaaS gain elastic scalability to add or reduce devices based on operational demand, making it particularly valuable for seasonal workforces, rapid growth phases, or multi-location deployments.
- DaaS ensures devices remain secure and compliant through automatic updates, patch management, data encryption, and remote wipe capabilities, which is critical for industries with regulatory requirements like healthcare and finance.
What is Device-as-a-Service (DaaS)?
Device-as-a-Service (DaaS) is a subscription-based model where organizations pay a predictable monthly fee that bundles mobile device hardware, software, and full lifecycle management services—instead of purchasing devices outright. It’s a turnkey solution that covers everything from strategic sourcing through secure decommissioning, all managed by a single provider.
DaaS simplifies the device lifecycle by consolidating strategic sourcing, staging and deployment, lifecycle management, and secure decommissioning under a single provider. Core benefits include:
- CapEx to OpEx shift: Eliminates large upfront hardware purchases
- Elastic scalability: Add or reduce devices based on operational demand
- IT resource liberation: Frees internal teams for strategic initiatives
What Is Device-as-a-Service (DaaS)?
DaaS is a full-cycle offering that includes:
- Strategic sourcing. Instead of purchasing devices outright, businesses partner with a DaaS provider to select the devices that best fit their needs. This could include smartphones, tablets, laptops, or rugged devices for specialized industries.
- Staging and deployment. The provider handles the configuration of devices, including installing necessary software, implementing security protocols, and tailoring settings to specific organizational requirements. Devices arrive ready for immediate use, saving time and reducing IT workload.
- Ongoing support. Once deployed, devices are managed remotely by the DaaS provider. This includes automatic updates, patch management, and troubleshooting, ensuring devices remain secure and operational without burdening internal IT teams.
- Lifecycle Management: When devices reach the end of their lifecycle, the provider handles secure decommissioning, recycling, or upgrades. This ensures data security and reduces e-waste while keeping your technology current.
Under this model, businesses can easily scale their device fleet as needs change. Whether onboarding new employees, rolling out devices across multiple locations, or supporting a seasonal workforce, DaaS allows companies to quickly adapt without accruing significant capital expenditures.
9 Device-as-a-Service Benefits for Organizations
DaaS delivers operational, financial, and technical benefits for organizations managing complex mobile device fleets. Like most as-a-service offerings, it extends in-house capabilities without the steep CapEx burden of self-management. Below are nine key benefits, with hypothetical business cases illustrating quantifiable impact.
1. Predictable, Simplified Costs for Better Budget Control
DaaS consolidates hardware, software, and lifecycle services into a single monthly fee, shifting costs from capital expenditures (CapEx) to operational budgets (OpEx). For IT leaders, this predictability eliminates budgeting for unexpected expenses like device repairs, replacements, or software upgrades.
| Factor | Traditional Procurement | Device-as-a-Service |
|---|---|---|
| Payment structure | Large upfront CapEx | Predictable monthly OpEx |
| Budget surprises | Repairs, replacements, upgrades | Bundled in subscription |
| Department coordination | Varying purchase cycles | Consolidated payments |
Case Study: Avoiding Capital Expenses
Consider a mid-sized company planning to equip its 500 employees with new laptops.
Under a traditional procurement model, they may spend up to $1,200 per device, totaling $600,000 in upfront costs. This significant investment often strains budgets and limits available capital for other priorities like hiring or infrastructure upgrades.
By adopting a Device-as-a-Service (DaaS) model, the company can shift to a subscription-based payment structure that eases this upfront cost.
At a typical DaaS cost of $35 per device per month, the company would pay $17,500 monthly or $210,000 annually. Over a three-year lifecycle, this totals $630,000, comparable to the upfront purchase but spread across manageable payments. Additionally, this fee includes hardware, software, support, maintenance, and eventual device decommissioning, eliminating additional costs for repairs or replacements.
The predictable monthly fee not only frees up $582,500 in immediate capital but also simplifies budgeting and cash flow management, allowing the company to invest in other strategic initiatives.
2. Reduced IT Workload Through Lifecycle Management
DaaS providers handle the entire device lifecycle, from procurement to secure decommissioning. This includes:
- Staging, configuring, and deploying devices ready for immediate use
- Performing regular software updates and patch management
- Providing remote troubleshooting and proactive monitoring
This offloads time-consuming tasks from in-house IT teams, freeing them to focus on strategic initiatives like digital transformation or cybersecurity improvements. Instead of IT staff spending hours troubleshooting user devices, DaaS providers resolve issues quickly through proactive monitoring—reducing device downtime and minimizing end-user disruptions.
Case Study: Minimizing IT Burden
Imagine a company managing a fleet of 500 mobile devices in-house. In this company, IT staff spend approximately two to three hours configuring and deploying each device, equating to 1,000 to 1,500 hours per deployment cycle.
Additionally, ongoing maintenance, troubleshooting, and updates require about one hour per device monthly, totaling 6,000 hours annually. This workload is compounded by support tickets, with each device generating an average of one issue per month, requiring 30 minutes to resolve—adding another 3,000 hours annually.
By outsourcing these tasks through a DaaS provider, the company eliminates the need for IT to handle time-consuming lifecycle management tasks. Instead, these hours are redirected to higher-priority projects like cybersecurity or infrastructure upgrades. While exact savings will vary, companies adopting DaaS often free up thousands of hours of IT labor annually, reducing operational bottlenecks, minimizing downtime, and enabling a more strategic use of IT resources.
3. Scalability to Meet Evolving Business Needs
As businesses grow, adapt to market changes, and onboard new employees, their device requirements evolve. This often strains internal resources managing growth without additional headcount.
DaaS offers elastic scalability, allowing organizations to quickly add or reduce devices based on operational demands. This is especially useful for:
- Seasonal or project-based workforces
- Rapid growth phases
- Expansion into new regions or markets
Case Study: Enabling Flexible Scalability
Consider a retail business experiencing seasonal fluctuations in staffing.
During the holiday season, the company needs to equip 200 additional employees with mobile devices for three months. If managed in-house, IT would face the challenge of procuring, configuring, and deploying devices quickly, often leading to rushed setups, increased workload, and higher costs for temporary hardware investments.
With a DaaS model, the company can seamlessly scale its device fleet up or down based on demand. The provider delivers pre-configured devices ready for use, eliminating the need for additional IT resources. After the season, the business returns the devices without worrying about storage, maintenance, or depreciation.
This flexibility ensures the company can respond to changing operational demands without overcommitting to long-term investments. While actual savings will vary, DaaS often enables businesses to scale efficiently, avoiding wasted resources while maintaining productivity during peak periods.
4. Enhanced Security and Compliance
DaaS ensures devices are always equipped with the latest security patches and configurations, reducing vulnerabilities. Providers implement robust security measures including:
- Data encryption: Protects information at rest and in transit
- Multi-factor authentication: Prevents unauthorized device access
- Remote wipe capabilities: Secures lost or stolen devices instantly
This is critical for industries where regulatory compliance is mandatory, including healthcare (HIPAA, PHIPA), finance (PCI DSS), and organizations handling personal data under PIPEDA, GDPR, or Quebec Law 25. DaaS providers offer detailed compliance reporting as part of their SLAs, keeping organizations audit-ready.
5. Access to the Latest Technology Without Upfront Costs
In traditional procurement models, businesses often delay upgrading devices to save costs, which can lead to inefficiencies and reduced productivity. DaaS eliminates this issue by including hardware refresh cycles in the subscription plan.
Organizations gain access to the latest devices and software without the need for capital investment. This not only improves employee productivity but also reduces the risks associated with outdated technology, such as compatibility issues or performance bottlenecks.
For example, a retail business using outdated tablets for point-of-sale transactions could experience lags or errors, impacting customer experience and accounting accuracy. With DaaS, they can upgrade devices regularly, ensuring optimal performance.
6. Improved Employee Productivity and Satisfaction
With DaaS, employees receive pre-configured devices ready to use out of the box. This seamless experience facilitates immediate uptake and heightens user adoption across the team.
Setup time drops, users access the latest tools immediately, and quick replacements for damaged devices ensure minimal downtime. Employees equipped with reliable devices show improved morale and engagement—with cascading effects on overall business outcomes.
7. Sustainability Through E-Waste Reduction
DaaS includes secure device decommissioning and recycling services, ensuring that outdated hardware is handled responsibly.
This helps businesses reduce electronic waste and align with environmental, social, and governance (ESG) goals. Organizations adopting DaaS can demonstrate a commitment to sustainability, which is increasingly important to stakeholders, customers, and regulatory bodies.
8. Simplified Logistics and Multi-Location Support
Businesses operating across multiple regions, time zones, and regulatory domains face a difficult choice: overload a centralized IT team or duplicate IT resources in each region. Both options strain resources and budgets.
DaaS simplifies multi-location logistics by handling delivery, setup, and management across all locations with uniform configurations. This is particularly beneficial for companies scaling globally or supporting hybrid work environments.
9. Proactive Maintenance and Issue Prevention
Lastly, DaaS providers use real-time monitoring tools to identify and resolve potential issues before they escalate.
Predictive analytics can detect hardware or software problems early, reducing downtime and repair costs. This proactive approach ensures that devices remain operational and employees experience minimal interruptions.
This is particularly important for fast-paced industries like transportation and logistics who have minimal time available to manually troubleshoot and audit device performance. If devices fail in these environments, it negatively impacts downstream operations. Being able to proactively audit, maintain, and fix mobile device issues is a critical capability that keeps these companies operational at all times.
What to Look For in a DaaS Provider
For IT and procurement leaders, the next question is how to select the right provider. Requirements vary based on fleet scope, industry, operating regions, and growth plans.
Choose a DaaS provider who can meet your needs today and scale with you over the next five to ten years—avoiding the need to repeat this selection process. Key factors to evaluate:
- Scalability for business growth. Choose a provider capable of accommodating your current device requirements while offering the flexibility to scale up or down as your workforce needs evolve. This ensures seamless support during expansions or seasonal changes.
- Comprehensive lifecycle management. Opt for a vendor that manages every aspect of the device lifecycle, including procurement, configuration, deployment, maintenance, and secure decommissioning. Providers with a turnkey approach save internal resources and reduce operational complexity.
- Transparent, predictable pricing. Seek vendors offering clear and fixed pricing structures. Predictable monthly fees ensure budget control and eliminate unexpected costs, making financial planning more straightforward.
- End-to-end security and compliance. Prioritize providers with advanced security protocols, including data encryption, regular security updates, and adherence to industry compliance standards. This is essential to protect sensitive corporate information and meet regulatory obligations.
- Top-tier support and service options. Look for 24/7 customer support, proactive device monitoring, and quick response times to minimize downtime. Providers that offer real-time tracking and helpdesk services enhance the end-user experience.
- Access to industry-leading device manufacturers. Ensure the provider’s strategic sourcing networks include industry-leading device manufacturers for your industry. This will ensure that you can keep your workforce equipped with the best-in-class tools that they’ll need to perform their jobs at peak capacity.
- Sustainability and ESG alignment. Partner with a provider that supports green initiatives, such as device recycling and refurbishing programs. This aligns with corporate ESG goals and minimizes environmental impact.
By evaluating these factors, you can select a DaaS provider that not only meets your technical needs but also aligns with your strategic objectives.
How to Implement Device-as-a-Service
Once you’ve selected a provider, implementation follows a process similar to other as-a-service offerings—planning, research, and onboarding. Here’s an overview:
- Assess your current device needs and challenges. Identify pain points: high upfront costs, IT workload, scalability issues. Determine device types, quantities, and software/security requirements
- Set clear objectives and budget. Define what you aim to achieve with DaaS, whether it’s cost predictability, improved productivity, or enhanced security. Establish a budget to align your needs with the subscription-based pricing model.
- Research and choose a provider. Evaluate DaaS providers based on their service offerings, scalability, customer support, and pricing transparency. Look for providers experienced in your industry to ensure tailored solutions.
- Plan your deployment strategy. Collaborate with your chosen provider to create a rollout plan. This includes device selection, pre-configuration, and delivery timelines. Start with a pilot program to test the service and identify any adjustments.
- Implement and train staff. Deploy devices with pre-configured settings, software, and security protocols. Provide training for employees to ensure they understand device functionality and the benefits of the DaaS model.
- Monitor and refine the service. Work with your DaaS provider to continuously monitor device performance, security, and usage. Adjust your subscription plan as your business scales or your needs evolve.
Each step will vary based on your organization’s size, complexity, and chosen provider. Most reputable providers offer professional services covering onboarding, deployment, and ongoing refinement—ask about customer success and support during your research phase.
About PiiComm’s Device-as-a-Service offering
PiiComm’s Device-as-a-Service (DaaS) solution is a comprehensive, all-inclusive approach to managing your organization’s technology needs.
Designed to simplify operations and enhance productivity, PiiComm bundles hardware, software, and lifecycle services into a predictable monthly subscription. Whether your business requires rugged tablets for field operations, mobile devices for remote teams, or point-of-sale systems for retail, PiiComm provides tailored solutions to meet your specific requirements.
With PiiComm, you gain access to pre-configured devices ready for immediate deployment, proactive support, and end-to-end lifecycle management. From secure deployment to ongoing updates, monitoring, and eventual decommissioning, every stage is handled by certified experts. PiiComm also ensures your devices stay secure and compliant with industry standards, reducing risk and protecting your data.
Scalability is built into the offering, allowing your business to adjust device needs as your workforce evolves. This flexibility, combined with transparent pricing and 24/7 support, ensures you can focus on your core operations while leaving device management to the experts.
Ready to transform the way you manage your devices? Contact PiiComm today to learn more about how our DaaS solution can help your business reduce costs, boost productivity, and stay ahead of the competition in your industry.
Frequently Asked Question
What is an example of DaaS?
A retail company equips 500 seasonal workers with pre-configured mobile devices for three months, paying $35 per device monthly, then returns them when the season ends—eliminating procurement, setup, and storage costs.
How does DaaS work?
Organizations pay a monthly subscription that bundles hardware, software, and lifecycle services—the provider handles sourcing, deployment, updates, support, and secure decommissioning while the client scales devices up or down as needed.
What is the difference between traditional device procurement and Device-as-a-Service?
Traditional procurement requires large upfront capital expenses and leaves the organization responsible for configuration, maintenance, and disposal, while DaaS shifts costs to predictable monthly payments and outsources the entire device lifecycle to a single provider.