From managed services to hardware-as-a-service (HaaS): The MSP journey

With increasing pressure on managed service providers (MSPs) to diversify their revenue streams, hardware-as-a-service (HaaS) is emerging as a more profitable business model. By opening up new revenue opportunities, full-subscription HaaS is significantly more lucrative for MSPs than the hybrid recurring sales model they have traditionally employed. HaaS is also a simple and practical modification to MSPs’ current operations, as it aligns closely with their existing device and service offerings.

Yet MSPs aren’t fully leveraging this promising business model: 63% are still mired in traditional, non-recurring revenue activities (e.g., hardware sales). That’s because MSPs are already burdened by inefficient software systems, none of which allow them to track and monitor their devices and endpoints in the field. Some are concerned that HaaS introduces more complexity: If they can’t track devices easily now, what happens when they move to a business model in which their devices are circulating among customers?

MSPs need unified data in order to implement HaaS

Managed service providers can—and do—thrive under the hardware-as-a-service and device-as-a-service (DaaS) models, but their success hinges on having the right data to support the business model. Effective asset tracking is crucial: It allows MSPs to maintain a clear understanding of where their devices are, what condition they’re in, and which commercial program they’re associated with. This level of visibility not only helps prevent the potential loss of assets but also ensures that MSPs can accurately assess and understand financials.

Unified data is essential for: 

• Operations, which is tasked with monitoring the precise whereabouts of all laptops, servers, BDRs, or other devices worldwide
• Sales, which must identify customers for cross-selling and up-selling opportunities
• Finance, which is responsible for managing accurate invoicing, strategic pricing, hardware depreciation, and financials for each project
• Service, which requires a comprehensive understanding of a customer’s history and devices in order to offer effective support

Many MSPs don’t have robust systems in place for managing asset data, which can result in risk of unintentionally relinquishing control over their devices, and lead to substantial margin impact. Moreover, MSPs typically lack confidence in their asset tracking and project governance. They may opt to abandon the HaaS model altogether, forfeiting the many opportunities it offers. Implementing comprehensive software that seamlessly joins asset tracking with project oversight is crucial. Commercial asset lifecycle management provides a source of truth for all roles and departments, enabling intelligent operations and strategic growth.

Hardfin simplifies asset management for MSPs offering HaaS

MSPs getting their businesses “HaaS ready” can do so simply with Hardfin: 

1. Set up a new customer project
2. Assign equipment to the project
3. Record when the asset moves
4. Add project details—whether revenue or costs—as they evolve

No matter how many assets you have deployed in the field, Hardfin tracks where they are, where they’ve been, which projects they’re tied to, what revenue they’ve generated, and what costs they’ve incurred.

“A spreadsheet might work early on; but even when you’re making your first few sales, spreadsheets won’t track assets that have been deployed, or register that a billing item needs to tie back to the asset, which should be on your revenue schedule. Even with a few dozen assets in the field, it’s complicated to keep up. Just imagine more! Hardfin takes that pain away.”

Kevin Reich

Director of Finance

With Hardfin, all teams—finance, operations, sales, and service—are empowered to understand what’s happening with every asset, at every location, on every project, with every customer, on every day. And they can do so without the infuriating back-and-forth of spreadsheets, timesheets, emails, and instant messages. Hardfin streamlines asset management for owned, leased, and sold devices in one comprehensive solution, allowing teams to perform their existing work without disruption.

Are you an MSP looking to implement a HaaS (or DaaS) business and pricing model? Most folks have questions when getting started. Our experts would love to talk with you about answers.