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Transitioning to as-a-service is inevitable. Are you ready?

August 10, 2020

Transitioning to as-a-service is inevitable. Are you ready?
What used to be a buzzword is now a growing trend in the technology industry. In fact, the as-a-service model is destined to become the only way of doing business as a Managed Service Provider (MSP). 
 
Just look at other technology providers who’ve led the trend. While just a few years ago, customers purchased CDs or one-time downloads to access products like Microsoft Office or Adobe Creative Suite, these products are now subscription based—simple to sign up for and cancel. This same as-a-service model is now being used to procure everything from copy machines and computers to firewalls and servers.
 
It’s easy to understand why. Today's consumers are hungry for cutting-edge technology and prefer a subscription-based model instead of being saddled with a piece of equipment that becomes dated within minutes of signing a purchase agreement. So MSPs are selling packages that include hardware elements in their contract/subscription—a model known as hardware as a service (HaaS).
 
Transitioning to the HaaS model 
You can’t just wake up one day and decide to make the change. The process should be gradual and give you time to think through how to integrate HaaS into your MSP plans and what hardware you want to use to standardize your product offerings across all your customers. You also need to consider your current customers and how they might feel about making the switch. It’s important to do your research and align with reputable third-party leasing companies like Ingram Micro Flexible Payment Solutions (FPS) before you make the switch.
 
The benefits of HaaS
  • Greater MSP standardization and more profitable service delivery
    Standardization is critical for any MSP looking to increase profits, and HaaS is key to making that happen. Chaotic customer IT environments lead to unnecessary service calls, increased downtime and frustrated technicians and engineers. If you embrace HaaS to enact standardization, over time you’ll drive down the cost of service, which will increase your profitability. In a study we conducted a few years ago, we found that as a result of standardization, labor profitability improved by up to $50 an hour.
  • Happier customers
    Customers with updated technology—that you know how to fix—will have far fewer episodes of downtime and will be much happier as a result.
  • More product sales
    The affordability and predictability of monthly payments make product acquisitions much more amenable to customers—especially when the costs are bundled together as part of their monthly invoice.
Ingram Micro FPS can help you transition to HaaS  
By partnering with Ingram Micro FPS, you and your customers can have greater financing flexibility. And you won’t have to worry about having cash on hand from cash reserves or a line of credit to help finance HaaS plans for your customers. Let us do the heavy lifting on the finance side, so you can focus on product implementation and service (you know that’s what you’d rather be doing anyway).

To learn more about how Ingram Micro FPS can help you make a smooth transition to HaaS—and offer you and your customers greater financial leverage—contact financialsolutions@ingrammicro.com.