| Device as a Service (DaaS) combines business hardware with agreed support and ongoing device management for a recurring fee. It can cover laptops and desktops from setup through to replacement and retirement. What is included, who owns the equipment and when it can be returned depend on the agreement. |
For a New Zealand business, the useful question is who will keep the fleet working as staff join, move roles and leave. This guide compares buying, leasing and Device as a Service, and explains what to check before committing.
Looking for leased equipment and a proposal? See our IT hardware leasing service. For support beyond the devices themselves, see our managed IT services.
What is Device as a Service?
The model packages three things: the hardware, support for that hardware, and ongoing management of the devices and the people using them. The first two are also found in many leases. The third is what sets the model apart.
Laptop as a service is the same idea applied to laptops only. Some agreements also include desktops, monitors, docks and phones.
What does ongoing management mean?
Ongoing management is the work of running devices once they are in service. Depending on the agreement, it can include:
- Joiners. Preparing a device and account for a new starter.
- Movers. Changing access and software when someone changes role.
- Leavers. Removing access and recovering the device and its data.
- Device health and patching. Keeping devices updated and checking for problems.
- Security settings. Applying and maintaining the settings your business has agreed.
How does Device as a Service compare with buying and leasing?
There are three common ways to put hardware in front of staff. These are commercial models, not universal contract definitions, and the services can overlap, so use the comparison to decide what to examine in each proposal.
| Approach | Main distinction | Check before choosing |
|---|---|---|
| Buying | Your business owns the equipment. | Warranty, support, management, replacement and resale or disposal. |
| Leasing | Equipment payments are spread over a term. | Bundled services, end-of-term options and early-return costs. |
| Device as a Service | Hardware and ongoing management are packaged together. | Management scope, licences, service levels, flexibility and refresh terms. |
How is Device as a Service different from leasing?
Leasing spreads the cost of equipment over an agreed term. Some agreements only provide the hardware; others include setup, support and replacement. Device as a Service adds ongoing management of the fleet, such as user changes, device health and agreed security settings. Compare the responsibilities in each proposal rather than relying on the label.
When does buying still make sense?
Buying suits businesses that want to own the equipment, have the capital available and already have someone managing devices, whether in-house or through a support agreement. It can also suit specialised hardware that will be kept for a long time. Warranty, support, replacement and disposal then need arranging separately.
What should a Device as a Service agreement include?
The agreement should say who does what for each stage of a device’s life. Check that it covers:
- Equipment. Which devices, which specifications, and how they are matched to roles.
- Setup and deployment. Configuration, security settings and getting staff working on the device.
- Hardware support. What happens when a device fails, and how a replacement is provided.
- Management scope. Who handles joiners and leavers, patching, device health and device settings.
- Licences. Whether Microsoft 365 and security software licences are included or billed separately.
- Your responsibilities. What stays with your business, such as insurance, data you need to keep and how staff look after devices.
- Changes and end of term. Adding and returning devices, refresh, renewal, and what happens to returned equipment and its data.
Does the fee cover accidental damage?
Not automatically. Hardware faults, accidental damage, loss and theft can be treated differently. Check which events are covered, any excess or replacement charges, and whether your business needs separate insurance.
How do you compare the total cost?
Compare the same devices and service levels over the same period. A monthly payment can help cash flow without being the lowest total cost, and a low purchase price can hide the cost of running the fleet.
- Equipment. The purchase price, or the payments over the term.
- Setup. Configuration, deployment and moving data to new devices.
- Licences. Software and security licences, whether inside the fee or alongside it.
- Repairs and replacement. Warranty, repairs outside it, and insurance.
- Internal administration. The time someone in your business spends managing devices.
- End of term. Return charges, early-exit costs, and any value left in equipment you own.
Avoid counting support twice if it is already included in your managed IT agreement.
Is Device as a Service cheaper than buying?
It depends on the equipment, the contract and the support you would otherwise need. Fleet size alone does not decide it. Compare actual inclusions, term and exit costs rather than a headline monthly figure.
How is it treated for accounting and tax?
The payment structure and the accounting treatment are separate questions. A monthly fee does not by itself make an agreement an operating expense or keep it off the balance sheet, and businesses that report under NZ IFRS 16 may need to recognise a lease. Ask your accountant how the proposed agreement should be treated.
When is Device as a Service a good fit?
It can suit businesses where the management work is the real problem, not just the purchase. Signs it may fit:
- Staff change regularly. People join, move roles and leave, and each change needs a device and access sorted.
- Nobody owns device management. Updates, settings and replacements happen when someone has time.
- You want one arrangement. Hardware, support and management sit with one provider rather than several.
- You want refresh planned. Replacement is agreed in advance rather than triggered by failures.
It may be less useful where devices are already well managed in-house or through an existing support agreement, or where specialised equipment will be kept long after a standard term. Device age matters, but so do support status, configuration, patching and whether the device still suits the work. Our guide to IT hardware lifecycle planning covers refresh decisions in more detail.
What should you check before signing?
Ask for a sample contract and read the clauses that matter when things change:
- End of term. What happens when the term ends, how refresh is triggered, and whether renewal is required.
- Return condition. What condition devices must be in, and any charges for wear, damage or missing accessories.
- Notice periods. Any auto-renewal clause and the window for giving notice. Diary those dates when you sign.
- Adding and reducing devices. Adding may be straightforward, while returning devices early can leave a remaining commitment.
- Support boundaries. Which support hours and services are included, and how this fits your existing managed IT agreement.
- Named equipment. The hardware tier or models being supplied, so you can compare proposals like for like.
Be cautious if a provider will not name the equipment, share a sample contract or explain what is excluded. A fee that looks unusually low may leave out support, management or end-of-term costs.
Device as a Service with Exodesk
Exodesk offers Device as a Service as its own package: leased hardware combined with ongoing management of devices and users through a managed IT agreement. That covers joiners and leavers, patching, device health and agreed security settings. Microsoft 365 and security licences can be included in the monthly figure. Exodesk handles hardware faults, while accidental damage, loss and theft sit with your business insurance, confirmed in the proposal.
If you only need the equipment and its support, our IT hardware leasing may be the better fit.
Frequently Asked Questions
What is Device as a Service?
Device as a Service combines business hardware with agreed support and ongoing device management for a recurring fee. It can cover laptops and desktops from setup through to replacement and retirement. What is included, who owns the equipment and when it can be returned depend on the agreement.
How is Device as a Service different from leasing?
Leasing spreads the cost of equipment over an agreed term, and some leases also include setup, support and replacement. Device as a Service adds ongoing management of the fleet, such as user changes, device health and agreed security settings. Compare the responsibilities in each proposal rather than relying on the label.
What is laptop as a service?
Laptop as a service is Device as a Service applied to laptops. The laptops come with support and ongoing management for a recurring fee. Check the same things you would for any agreement: management scope, licences, refresh and end-of-term terms.
Is Device as a Service cheaper than buying?
It depends on the equipment, contract and support you would otherwise need. Compare the same devices and service levels over the same period, including setup, licences, repairs, internal administration, return charges and any value left in equipment you own. A monthly payment can help cash flow without being the lowest total cost.
Does Device as a Service cover accidental damage?
Not automatically. Hardware faults, accidental damage, loss and theft may be treated differently. Check which events are covered, any excess or replacement charges, and whether your business needs separate insurance.
Can we reduce the number of devices during the term?
That depends on the agreement. Adding devices may be straightforward, while returning them early can leave a remaining payment commitment or an exit charge. Check the rules for both increases and reductions before signing.
Does every device get replaced after three years?
Refresh timing is agreed in the contract. Check the term, what triggers replacement, whether renewal is required, and who manages the changeover. Device suitability and support requirements should inform the plan.
What happens to business data when a device is returned?
Retain or migrate the business data you need before returning the device. Agree who removes the remaining data, which sanitisation method suits the storage and information involved, and what happens if a drive has failed. Disposal should follow the agreed process.
Is Device as a Service an operating expense?
Not necessarily. The payment structure and the accounting treatment are separate questions, and businesses reporting under NZ IFRS 16 may need to recognise a lease. Ask your accountant how the proposed agreement should be treated.
Do we still need a managed IT agreement with Device as a Service?
It depends what each agreement covers. DaaS manages the devices, while managed IT can cover wider support such as networks, servers and cloud services. Check for overlap so you do not pay for the same support twice.
NEXT STEP
Choosing how to equip your team?
Talk to Exodesk about buying, leasing and ongoing device management. We can help you compare the equipment and support your business needs, with the inclusions and contract terms set out before you decide. We work with businesses across New Zealand.
Or see our managed IT services for wider support.
