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What Is Device as a Service?
Device as a Service (DaaS) is a subscription model in which a business pays a recurring fee for computers and related services, such as deployment, support, management, and device refresh, instead of buying and managing devices on its own. The provider handles much of the device lifecycle, so IT teams can spend less time on hardware.
Device as a Service is different from Desktop as a Service, which is also abbreviated DaaS and delivers virtual desktops from the cloud. For that model, see thin clients and virtual desktops. This page explains how Device as a Service works and how it compares with leasing and buying devices outright.
Device as a Service essentials at a glance
Bundles hardware and lifecycle services into one recurring payment
Typically includes deployment, support, repairs, and planned device refreshes
Can include management, analytics, and secure device retirement
Shifts device spending from a large upfront purchase to predictable ongoing costs
Contract terms, included services, and end-of-term options vary by provider
How Does Device as a Service Work?
With Device as a Service, a business signs a multi-year agreement and pays a recurring fee, often per device or per user, for hardware plus a defined set of services. The provider manages the device lifecycle according to the agreement, then refreshes or collects devices at the end of the term.
What Device as a Service typically includes
Lifecycle stage | Services that may be included |
|---|---|
Planning | Assessing needs and choosing devices for each role |
Hardware | Laptops, desktops, workstations, and sometimes accessories or monitors |
Deployment | Configuration, imaging, asset tagging, and delivery ready to use |
Management | Remote monitoring, updates, security management, and analytics |
Support | Help desk, repairs, on-site service, and replacement devices |
Refresh | Upgrading devices on a planned schedule |
Retirement | Data sanitization, device return, and recycling or redeployment |
Included services vary widely by provider and plan, so the agreement determines exactly what's covered. For details on the management and support pieces, see device management and warranties and support.
Device as a Service vs. Leasing vs. Buying
The main difference between these options is how much of the device lifecycle the business owns and manages. Buying gives full ownership and full responsibility, leasing spreads the hardware cost over time, and Device as a Service bundles hardware with lifecycle services.
Factor | Buying outright | Leasing | Device as a Service |
|---|---|---|---|
Ownership | Business owns the devices | Lessor owns the devices during the term | Provider or financing partner typically owns the devices |
Upfront cost | Full purchase price | Little or none | Little or none |
Ongoing payments | None for hardware | Regular lease payments | Regular subscription payments |
Services included | None unless purchased separately | Usually hardware only | Deployment, support, management, and refresh, depending on the plan |
Refresh | Business plans and pays for replacements | Return or upgrade at end of term | Planned refresh built into the agreement |
End of life | Business handles data removal and disposal | Devices returned to the lessor | Provider typically handles retrieval, data sanitization, and recycling |
IT workload | Highest | High | Lower |
Device as a Service vs. leasing
Leasing is primarily a financing arrangement for hardware. Device as a Service adds lifecycle services to that hardware, which can reduce the work IT does to deploy, support, and retire devices. Some Device as a Service plans use leasing or financing behind the scenes.
Financial and accounting treatment depends on the agreement and applicable accounting standards, so consult your finance team or advisor before choosing a model.
Benefits and Trade-Offs of Device as a Service
Device as a Service can simplify budgeting and lighten IT's workload, but it involves long-term commitments and less direct control over devices.
Benefits
Predictable costs: A recurring fee replaces large, irregular hardware purchases.
Less IT effort: The provider handles deployment, repairs, and retirement tasks that would otherwise fall on IT.
Regular refresh: Employees get newer devices on a planned schedule, which helps avoid aging, slow hardware.
Easier scaling: Organizations can add devices as they hire, within the terms of the agreement.
Secure retirement: Data sanitization and device return are often part of the service.
Trade-offs
Long-term commitment: Agreements typically last multiple years, and early termination can carry costs.
Total cost over time: Recurring payments for hardware and services may cost more over the full term than buying devices and managing them in-house.
Less ownership: The business typically doesn't own the devices and must return them at the end of the term.
Provider dependence: Service quality depends on the provider's performance and the terms of the agreement.
Who Is Device as a Service For?
Device as a Service is often a good fit for organizations that want predictable device costs and less hands-on hardware management.
Organization type | Why Device as a Service may fit |
|---|---|
Growing businesses | Adds devices as the team grows without large upfront purchases |
Small IT teams | Offloads deployment, support, and retirement tasks |
Hybrid and distributed workforces | Ships configured devices directly to employees and supports them remotely |
Organizations with strict refresh policies | Keeps devices on a consistent replacement schedule |
Businesses focused on budgeting | Converts device spending into predictable recurring costs |
Organizations that keep devices for many years, have a well-staffed IT team, or prefer to own their assets may find buying or leasing more cost-effective.
HP Managed Device Services
Our device-as-a-service offering is HP Managed Device Services, formerly known as HP Device as a Service [HP]. It combines hardware and services, which can include advising, planning, configuration and deployment, device management, and refresh and renewal. Included services depend on the options selected, and requirements may vary by region or authorized partner.
Shop business PCs and devices in our business store.
How to Evaluate a Device as a Service Offer
To evaluate a Device as a Service offer, compare exactly what's included, how long you're committed, and what happens at the end of the term.
List included services. Confirm which deployment, support, management, security, and retirement services are part of the fee.
Check device choices. Make sure the plan offers the laptops, desktops, and workstations your roles need. See business laptops and business desktops.
Review support levels. Look at response times, on-site coverage, and accidental damage protection.
Understand the term and flexibility. Check the contract length and the rules for adding, removing, or upgrading devices mid-term.
Clarify end-of-term options. Find out whether devices are refreshed, returned, or available to purchase, and how data is removed.
Compare the total cost. Weigh the full subscription cost against buying or leasing plus the internal cost of managing devices.
Confirm security and management tools. Make sure the provider's tools work with your security policies and existing IT systems. Explore business security features.
Frequently Asked Questions About Device as a Service
Is Device as a Service the same as leasing?
No, Device as a Service is not the same as leasing. Leasing typically covers only the use of hardware for a set term, while Device as a Service bundles hardware with lifecycle services such as deployment, support, management, and device refresh.
Do you own the devices with Device as a Service?
In most Device as a Service agreements, the business does not own the devices. They're returned or refreshed at the end of the term, although some agreements may offer an option to purchase.
What is the difference between Device as a Service and Desktop as a Service?
Device as a Service is a subscription for physical devices and related services. Desktop as a Service delivers virtual desktops from the cloud that users access from almost any device. Both are sometimes abbreviated DaaS.
Is Device as a Service only for large companies?
No, Device as a Service can work for businesses of many sizes, although minimum device counts and terms vary by provider. Smaller businesses may benefit most when they lack in-house IT staff.
What happens to data on devices returned at the end of a Device as a Service term?
Many Device as a Service providers sanitize data on returned devices as part of the service. Confirm the data removal method and whether certificates of data sanitization are provided before signing an agreement.
