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Rent vs. buy? Why the technology consumption model (TaaS) is taking hold in IT

May 24, 2019

The last thing a growing company wants to worry about is whether its technology can keep pace with the need to innovate and respond to competitive pressures. That’s one reason technology as a service (or TaaS) is becoming so popular.
 
This end-to-end technology consumption model cuts costs by bundling hardware, software, accessories, services and support into a single subscription—enabling customers to “rent” versus “own” these solutions and upgrade quickly as needed.
 
Here are 5 reasons TaaS makes sense, both for you and your customers.
 
Low operating cost
An obvious benefit of moving to the technology consumption model is lower operating costs. First and foremost, TaaS eliminates the upfront cost of purchase and installation, as well as ongoing costs like maintenance and upgrades. Companies no longer have the responsibility of ensuring infrastructure uptime, maintaining hardware and networking equipment, continually replacing old software, or paying for unused licenses. The time, money and energy spent making technology decisions and having IT teams manage everything can now be spent on more strategic tasks.
 
TaaS also saves growing companies from having to buy more capacity than they really need, simply to deal with sudden business spikes.
 
Flexible finance options
Another great feature of the TaaS technology consumption model is that it provides fantastic flexibility and financing options. For example, with a TaaS rental agreement, your customer can get flexible terms upfront, and after 12 months, they can go to go to a month-to-month agreement, which means they can determine when the rental ends. They can add services and cloud software, as well. And with the TaaS lease option, your customers can secure more produces over a longer term, resulting in a lower price point.   
 
Faster refresh cycle
With technology changing at a record pace, TaaS helps ensure that your customers can access the latest solutions while optimizing their IT budget. In a traditional purchase model, if customers refresh too early, they’re throwing money out the window. Upgrade too late, and they risk missing the latest innovations that can fuel growth. With TaaS, technology and software refreshes can happen more frequently, which ensures companies are accessing the most innovative technology, as well as the latest security. 
 
Strengthens your status as trusted advisor
TaaS is a great way to establish long-term, sustainable relationships with your customers—and reinforce your reputation as a technology advisor. By recommending TaaS, you’ll help customers unburden their IT team and simplify day-to-day management, while giving them industry-leading technology solutions to help them grow. Not only that, it also creates a predictable, service-led revenue stream for you and helps extend customer loyalty.
 
For more information on TaaS or how it can benefit your customers, contact your account representative today.