As-A-Service: a circular model on the rise
In recent years, digital transformation has affected all companies. They are now forced to diversify their business models and look for different sustainable alternatives in order to remain competitive. From start-ups to large multinationals, many companies are reinventing themselves and moving towards a sustainable business model: As-A-Service.
What does the As-A-Service model mean?
An As-A-Service solution is an IT solution available on demand. Examples include software, platforms and As-A-Service infrastructure (SaaS, PaaS, Iaas). This generally means that a third party manages a solution for you, so that you can concentrate on more important aspects of your business.
Today’s companies need high-performance, scalable IT to support their business and respond to new uses. However, this is not their core business. And this is all the more true given the complexity of managing IT in-house, given the rapid pace of technological change, the size of budgets, the need for IT skills and security, and the level of service required. Against this backdrop, companies have every interest in delegating the management of their infrastructures and applications to external operators. Hence the explosion of the As-A-Service consumption model and its extension to all layers of IT.
IT leasing is perfectly in tune with this trend: the aim is no longer to own servers or computers, but to finance their use. Why buy equipment that will quickly become obsolete? It’s better to ensure constant access to the best technologies of the moment. Owning the most powerful computer is no longer an end in itself, but accessing its performance is!
What are the benefits of the As-A-Service model for businesses?
Choosing an As-A-Service approach offers a number of advantages for companies wishing to modernize their IT environment.
Significant financial gains
With As-A-Service, companies cut costs by purchasing services from suppliers on a subscription basis. This model is very popular with companies, as it avoids capital expenditure and reduces operating costs. Companies only pay for the resources they need, and can test new configurations without breaking the bank. What’s more, the As-A-Service model ensures that the company’s investment capacity is not depleted, by avoiding investment in technological assets whose value rapidly declines. With monthly payments, costs are naturally integrated into the current budget, preserving cash flow and ensuring that the company’s funds remain available for its core business activities, with no unpleasant surprises linked to obsolescence.
State-of-the-art equipment
With this model, which offers new solutions, companies are able to adapt rapidly to market developments, while outsourcing the risk of obsolescence. They can renew their IT assets on a regular basis to ensure they have the latest generation of hardware, and look forward to business growth with confidence. It’s also an excellent way of adapting to real business needs. If, during the agreed period, the company experiences a peak or a drop in productivity, it is possible to expand or reduce the number of computers. As contracts are generally open-ended, they allow you to replace your hardware as and when you need it, or as and when it becomes obsolete.
Expertise and outsourcing 
As-A-Service offers you the expertise of specialized professionals. For example, depending on your needs and expectations, IT professionals can advise you on the hardware and technologies best suited to your business.
Renting your IT equipment also allows you to outsource the management of your IT equipment, which requires time and technical skills. An external service provider manages the maintenance of your computer equipment. An expert in his field, he will be able to provide you with the technical support you need. This enables you to focus your IT resources on more productive and profitable activities.
Outsourcing these operational aspects also meets an environmental demand for end-of-life equipment management, with contracts that can be adapted to suit the company’s needs. By responding to a demand for flexibility, and with a made-to-measure aspect, As-A-Service is becoming an indispensable business model.
As-A-Service or IT leasing: the best way for companies to go green
Sustainability and climate protection have become a necessity for companies. Aware of the environmental impact of their IT equipment, they are increasingly relying on environmentally and climate-friendly solutions to stand out from the crowd.
What’s more, in many areas, the value of ownership declines as technology evolves. People prefer to pay rent and benefit from the latest technologies, rather than acquire rapidly obsolescing equipment. It is in this logic of financing use that leasing is gaining ground every day.
The main objective of leasing, in favor of the circular economy, lies in the fact that the financial partner has an interest in developing the quality, lifespan and recyclability of its products from a commercial point of view. In the case of leasing, the leased equipment belongs to the financial partner. The financial partner is responsible for taking back the leased assets at the end of their useful life, and ensures optimal use of the equipment by leasing it to one or more other users, or by reselling it on the second-hand market. The financial partner will only retire assets if no second life is possible. In this case, he or she will ensure environmentally-friendly and responsible recycling. As a flexible financing instrument, leasing therefore encourages companies to innovate in favor of the circular economy.
The market is evolving towards a more flexible As-A-Service model, offering modular, scalable, sustainable and usage-driven services to deliver operational results that meet business requirements. Would you like to delegate your company’s IT management, or renew your fleet, whether you lease or buy? At FinGO Solutions, we take the time to analyze your company’s needs. By creating, shaping and sustaining your own financing solution for your technology assets.