Hardware as a Service is growing rapidly because of increased innovation and pressure on cloud computing. Learn more about the upcoming trends!
Markets continue to get more and more competitive irrespective of which industry you belong to. Technology acquisition in the form of Hardware-as-a-Service (HaaS) is surging to keep businesses competitive without much financial burden. It follows a procurement model, allowing organizations to lease or license hardware from a managed service provider.
Affordable managed solutions via a rental agreement are beneficial for enterprises looking to stay within their IT budget. Hardware as a Service drives organizations to meet the demands of changing IT infrastructure. Here are some factors that are spearheading the rise in HaaS market:
- New IT solutions and increased digitization
- Increased investment in hardware services
- Product innovation and technical advancements
- Rising pressure on cloud infrastructure
- Upgrade of research and development facilities According to research conducted, between the forecast period 2020-2025, the HaaS market value will grow at a compounded annual rate of 26.2%.
Moreover, a noteworthy finding of the research is that 48% of organizations in North America and Europe are leasing one or more types of hardware. Servers and networking equipment are the second most preferred hardware to lease.
Growth by Geographical Region
North America holds the largest market share because of a large number of hardware solutions and services providers. There is an underlying embryonic demand in North America as users are highly aware of the service offering.
Asia - Pacific is said to witness the highest growth rate in the forecast period due to many growing businesses in that region. HaaS is a cost-effective model for optimal utilization of information technology hardware which goes a long way for rising enterprises in developing countries.
Growth by Industry Sectors
Adopting HaaS varies from one industry to another. Among all sectors, retail organizations have embraced HaaS the most. HaaS became popular in the sector because of the large number of stores that operate all over the world, including remote areas. Internal IT teams find it hard to service some stores, especially those in inaccessible regions. Other industries to follow their lead are education and finance.
HaaS is likely to grow in the future as it mitigates the risk of a complete shutdown of the business during unforeseen circumstances.
Service providers are quickly launching HaaS as part of their offerings. Through the efforts of service providers, end-users will enjoy more choices and extra productivity using the latest devices.
Hardware for your Cloud
How about you go a step further from just opting for hardware as a service solution and step into the realm of infrastructure as a service. You get the hardware with a tailor-made cloud-deployed for you. Not only are you getting the right server but also cloud resources to help enhance your business operations.
Curious to know about our cloud infrastructure hardware? With VEXXHOST's OpenStack powered private cloud, you can use very specific hardware in terms of specs as long as it makes sense for you. We can leverage your existing hardware and build your servers hyper-converged if it serves your computing and storage needs and budget. Get in touch with us to explore your cloud options!