Wait--Now Hardware's A Service?

So it is. Scott Campbell reports that savvy MSPs are already eyeing a changing marketplace where customers can effectively 'lease' hardware along with services and support:

"Gavin Garbutt, president and CEO of N-Able Technologies, an Ottawa-based MSP platform vendor, says within three years many end users will buy laptops for $170 a year, a price that includes the hardware, software, support and management. It's a price more affordable now than buying a laptop up front and allows customers to better budget their IT needs. 'You'll get the security system, support and at the end of three years, you'll get a new one.'"

And yes, this will be a challenge to many VARs current offerings, and soon. Ingram Micro, for one, is turning this into a business today:

"[Ingram's] Seismic Solution Financing allows customers to finance hardware along with Seismic managed service offerings into one bill to the customer. The program allows solution providers to be paid up front for the hardware but accrue monthly recurring revenue for the services portion of the deal.

Posted by Joe Caponi at 10:29 AM, August 27, 2007

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