For the global economy, 2023 will be a grim year: we’re likely hurtling toward a recession.
With a massive downturn on the horizon, companies need ways to cut costs and create efficiencies without axing personnel. One underexplored area worth looking at is your mobile device fleet.
Many companies equip employees with smartphones and tablets to create a more flexible and productive workforce. But this approach creates costs – upfront and hidden – that add unneeded financial strain.
Device-as-a-service (DaaS) providers offer an alternative. Here, I’ll show you three ways a DaaS partner can help your company affordably manage your mobile device fleet.
1. Convert CapEx to OpEx
Buying smartphones and tablets outright means paying cash up front. And with best-of-breed devices nearing $1,000, the total cost of a mobile device fleet can range into the hundreds of thousands of dollars. The impact: fixed assets that force your company to carry significant CapEx on the balance sheet.
In a boom economy, that might be a tolerable reality. But when the economy is in flux, owned fleets eat up valuable working capital. And companies need cash on hand so they can quickly react to market changes.
One way to free up that cash? Partner with a DaaS provider that offers a subscription-based model for mobile device financing.
Instead of purchasing smartphones and tablets, you can pay a low monthly fee for each device. This financing model lowers your upfront expenses, giving you the cash you need to invest in efforts to recession-proof your business.
DaaS providers aren’t just useful in a down economy, though. With a long-term partnership, you can fully convert your mobile device fleet from a CapEx to an OpEx and invest more in your company’s growth.
2. Outsource time-intensive fleet management
Alongside the hefty upfront cost, owning a mobile device fleet comes with a significant time investment. Companies need a dedicated team to…
- Insert SIM cards (or assign an eSIM).
- Ship devices to remote or hybrid workers.
- Process and handle troubleshooting requests.
At most organizations, the bulk of this work falls on the IT team. But managing a mobile device fleet takes time away from essential duties, like maintaining server infrastructure or training employees to use software tools. Time-crunched IT teams can create operational gaps, hurting company-wide productivity when your business needs it most.
Here, DaaS providers offer a time-saving solution. The right partner can manage your mobile device fleet for the full device lifecycle, including device set-up, software installation, logistics, and troubleshooting – all rolled into your monthly subscription.
The benefit? More time for your IT team to focus on the core back-end tasks that keep your business humming.
3. Lower the cost of device breakage, repair, and replacement
Many companies choose not to insure their smartphones and tablets. That’s in part because with proper handling, top-of-the-line devices can last for years. The resulting mindset? “If it breaks, we’ll just buy a replacement – it was probably overdue for an upgrade anyway.”
The problem, though, is that a certain percentage of devices are guaranteed to break. And that often happens well before they’re obsolete.
In the context of a full device lifecycle, breakage can increase the cost of each device by about 10 to 20 percent. Translation: a mobile device fleet that’s suddenly much more expensive than meets the eye. In a downturn, that’s far from ideal.
To mitigate the risk of breakage, choose a DaaS provider that includes insurance in each device subscription. This way, you’ll be covered in case of damage. Some providers even repair or replace devices at no additional cost.
4. Mitigate security and compliance risks
Most businesses have robust cybersecurity and compliance measures for their servers and laptops. But that’s not always the case when it comes to smartphones and tablets.
That’s in part because IT teams are often overstretched. And while many have installed mobile device management (MDM) software on each device, they may not have the time to routinely monitor and manage an entire fleet.
A poorly managed fleet, though, can create massive – and costly – risks. In one recent real-world example, the SEC investigated 16 Wall Street firms for using company-issued mobile devices to communicate outside of official channels. The cost: a combined $1.1 billion in fines.
In a down economy, the last thing your company needs is an unexpected fine or penalty, especially if it’s preventable. With a DaaS provider, you can secure your device fleet to mitigate cybersecurity and compliance risks.
The right DaaS partner can install and manage MDM software that can...
- Restrict app access and downloads
- Remotely lock or wipe devices
- Enforce password policies
- Push software updates
- Protect against malware
DaaS providers have a dedicated team for device monitoring. And because of its subscription model, you won’t pay extra for MDM software, helping you save on licensing fees.
It’s important to note that DaaS providers can’t replace your existing cybersecurity and compliance infrastructure. But a capable partner will use the tools available to help you further mitigate risks and avoid costly penalties.
Recession-proof your business to come out on top
How do companies survive a recession? As Bain analysts put it, “they surgically restructure costs before the downturn, trimming the fat and preserving the muscle.” The impact: insulation against the worst of a recession – and dramatic gains on the other side.
By partnering with a DaaS provider now, you can cut down on upfront expenses and boost your team’s efficiency. This way, you’re better equipped for both the storm and the sunshine after.
