On this blog, we’ve spent a few thousand words over the last few years on Technology as a Service, and why it will play such an important role in the future of building technologies. But in doing so, we’ve mostly centered on the minutiae of what makes “as a Service” offerings work. So let’s zoom out a bit. While there are plenty of details we could discuss regarding cloud implementation or end-of-term refreshes, let’s take the 5000-foot view instead. Here are three simple reasons why TaaS makes so much sense for business owners:
1. The Speed of Technological Advancement
You’re probably familiar with the well-worn cliché that technology grows on an exponential curve. But it’s true, and for the first time in history, we’ve reached a point where development is constantly outpacing customers’ ability to purchase new technology. This has been the case in the consumer market for years, with smartphones and other electronics leading the charge, but now the trend is becoming impossible to ignore in the building technology space as well.
As manufacturers continue to funnel resources into research and development, the technologies that connect and protect our businesses are becoming more connected, and more powerful. In the past, it would have been viewed as unfortunate timing to purchase an expensive system hoping it would last a decade or more, only for a newer and much better iteration of that technology to be released in a year or two. Now, more and more business owners report feeling like there is almost never a perfect time to buy, because it seems there is always a new version coming.
TaaS allows you to futureproof your technology, rather than being wedded to something you no longer want.
2. Basic Economics
Technology is an essential part of your business, whether it provides mission-critical infrastructure or keeps people and property safe. But any time a business purchases technology, they are also taking on an expensive asset that will depreciate in value over time, with several non-recoverable costs involved (design, installation, software, training, and more). For business owners, it generally doesn’t make sense to sink a large lump sum of cash into a non-revenue-generating asset. Instead, TaaS allows you to distribute the impact of this cost over a longer term with affordable monthly payments, freeing up cash to invest in your business and avoiding financial strain.
3. Peace of Mind
As technology has become increasingly essential to the day-to-day function of our businesses, downtime has become even more problematic. With that in mind, more and more business owners are becoming fed up with the break/fix service model. It’s easy enough to understand why: break/fix places almost the entire burden on the owner. When your technology breaks, you’re responsible for calling somebody to fix it, and any surprise expenses and downtime involved are your problem.
Instead, TaaS agreements have service and support plans built into the monthly payments you make. Your partnership with your technology partner means you can count on prompt service, with no financial headache involved. Because at the end of the day, technology you bought to make life simpler shouldn’t be causing complications.
