Hardware as a Rental Services: Jenne Partners with GreatAmerica
MSPs are looking for ways to push deeper into the as-a-Service market. We have recently seen CompuCom throw their hat in the ring by offering a vendor agnostic Device-as-a-Service subscription. Many MSPs, especially smaller firms, could be searching for a way to offer similar offerings. One major roadblock for these smaller MSPs is the large upfront cost it would take to offer a Device-as-a-Service solution.
Jenne, the value-added distributor, may have a solution. The company is partnering with GreatAmerica Financial Services to offer resellers, solutions providers and their customers a HaaR (Hardware as a Rental) program — which combines the best attributes of Hardware as a Service (HaaS) and equipment financing, the company claims.
GreatAmerica has extensive experience financing recurring revenue deals for VARs and MSPs. In fact, the company trademarked the Hardware as a Rental (HaaR) term.
Through the Jenne offering to partners, clients are provided with a one-invoice solution for all hardware, software, installation, and services, and MSPs are left without the large financial risk associated with procuring the hardware themselves or requiring a large upfront payment from the clients. This will allow MSPs to be paid upfront for the project, while the client continues to pay a monthly fee to the HaaR provider.
“Building a standard HaaS model is unattainable for many solution providers who don’t want to cash flow the program,” said Wil Meggers, vice president and general manager at GreatAmerica Financial Services in a prepared statement. “HaaR is a great alternative to HaaS, where solution providers enjoy increased managed services sales, bigger overall deals, and higher margins.”
MSPs would have very little risk involved with this service, and it seems to benefit both the MSP and their clients. According to GreatAmerica, 58 percent of managed services providers were able to increase their monthly contracts by 10 percent or more by utilizing a HaaR service. Also 85 percent of the MSPs surveyed increased margins by 5 percent or more with financed deals vs. cash deals.