With research indicating that the Hardware as a Service (HaaS) market is expected to surpass $300 billion by 2026, it’s clear that Managed Service Providers (MSPs) have decided that leasing is an excellent alternative to buying technology outright.
This approach makes sense for several reasons. It lessens financial risk, simplifies the upgrade process, makes it easy to deliver a standardized hardware solution, and frees up much-needed capital for other priorities.
Companies like GreatAmerica Financial Services cater to the MSP community’s need to deliver Hardware as a Service (HaaS) in an easy, cost-effective way. Although HaaS is rarely as profitable as Software-as-a-Service (SaaS) offerings, there are clever ways to capture more revenue with HaaS.
5 Ways to Grow Monthly Recurring Revenue (MRR) with HaaS:
Providing HaaS via GreatAmerica leasing agreements can be quite lucrative, but it takes a multi-pronged strategy to maximize your earning potential. Here are 5 places to start:
- Pair HaaS with Other Value-Added Services
Hardware deals are full of add-on opportunities. From consulting services, to ongoing performance evaluation, support, and monitoring, there are several places you can niche down and carve out valuable services bundles that include hardware.
- Deliver a Tiered Approach
Not every customer is going to want, need, or be able to afford top-of-the-line hardware. But some environments (such as healthcare and finance) will require extra rugged and secure devices. For this reason, it’s a good idea to offer around three tiers of HaaS in a good, better, best format.
- Provide “Early Upgrade” Options
Most MSPs include equipment upgrades in their contracts, but they’re typically only every 3 years. Some companies want the latest and greatest tech as soon as it’s available. Offering those trendsetters the option to upgrade every 6 to 12 months is another way to rake in more recurring revenue.
- Automate Billing
Actual MRR isn’t just a theoretical number. To truly generate monthly recurring revenue, payments need to be hitting your bank account in a consistent and timely manner each month. Automating your billing process will not only cut down on unnecessary work and costs, but also ensure that your MRR is converted into useable cash flow.
If you already have a professional service automation (PSA) platform in place, you’ll be thrilled to hear that you can cleanly combine all your services—including HaaS via GreatAmerica—with an automated merging tool that integrates seamlessly with your CRM/PSA. It’s called ConnectBooster, and this tool makes it easy to:
- Increase visibility into remittance payments
- Automatically reconcile transactions in your accounting package
- Create a set-it-and-forget-it automated billing & collections process that syncs the tools you’re already using
HaaS has the potential to deliver lucrative results for your MSP practice if you pair it with other value-added services, deliver tiered bundles, provide ‘early upgrade’ options, and automated billing. To learn more about how ConnectBooster makes it easier for MSPs to generate true MRR without expanding their service offerings, click here.