Home Industry Market Corporates can now get smartphones as a service

With the world moving to the subscription economy —  everything as a service — corporates now have the ability to take advantage of the flexibility this provides.

Brightstar, a major smartphone and accessory distribution and buy-back company, and a major Australian Telco have teamed up to provide device as a service (DaaS).

It is very different from traditional handset leasing plans because as Sein Teik Tan, (ST) APAC head of financial services for Brightstar, says “There are lots or leasing companies offering traditional term leases and residuals. We understand the residual value better so the subscription service lowers costs across the term.”

Teaming with Telcos allows customers to get it all in one bill – a major driver of the subscription economy.

The service is available over a 12, 18 or 24-month programme. ST says most chose 18 or 24 months as it lowers the monthly bill.

At the end of the term, customers can return the phones and sign up for a new phone, buy the phones at market value, or just roll over the contract for as long as they want.

Brightstar has several uses for the used phones. It can re-subscribe them (for example to Uber as it provides used smartphones for its drivers), use them for spare parts, or, if they are unserviceable, recycle batteries and materials and perform a certified destroy to secure the data.

ST says the subscription system is very different to leasing as it takes into account the residual value of the phone, it provides an agreed cap replacement for broken or stolen phones and it can customise handsets with specific accessories, and software/menus as part of the subscription cost.

He has written a few words about smart device subscription.

Device as a service is radically changing the way businesses think about their smartphones and tablets. Why own a fleet of smart devices with the associated cost, servicing and employee dissatisfaction when your team are left handling last year’s tech in front of senior clients? Brightstar has a new proposition for Australian corporate and government organisations. Here are four reasons why your organisation should be switching to a subscription service:

1.Hassle-free

Workers are now more mobile and empowered than ever before. That’s great for productivity, but companies are facing a growing mobility challenge. Over 90% of Australians own a smartphone and use them for work. The ever increasing fleets of smartphones and tablets across businesses are taking more time, resource and money to support. It’s no surprise then that employee mobility is the top priority for CIOs, with 88% of senior IT decision makers exploring collaborations to provide fleet management solutions.

Some companies have adopted a bring your own device (BYOD) approach to reduce cost. This comes with inherent setup costs and security risks.Almost three-quarters of IT directors worry that BYOD will cause IT costs to spiral out of control. A total of 67% of mid-market firms are hesitant to introduce a BYOD program because of security concerns. BYOD is not a feasible option for most government and corporates wanting to keep information secure .

IT teams are turning to smart device subscription. With Brightstar’s professional support and device servicing, the fleet management is removed and devices are cared for during their entire lifecycle, including all device configurations and updates.

If equipment is broken, it is quickly repaired or replaced to get employees back on the road. If an employee leaves, or needs to upgrade to a new smartphone, the subscription service provides a secure wipe of content to give businesses peace of mind.

With a device subscription service, companies save time, money and stress by combining the device with a professional service into a single monthly price point.

2. Employees get the latest tech

Subscription services gives access to the latest smartphone and tablet technology. Too often, an employee’s personal tech is far more advanced than the IT kit supplied by the company. Employee dissatisfaction grows, and the IT department becomes the bad guy – constantly saying “no” to staff requests for a desperately needed upgrade.

A subscription service allows employees access to the latest smartphone or tablet models more frequently, making employees technologically empowered to get the job done. As a result, overall morale improves, productivity increases and businesses grow. By offering their company the latest tech, in a secure and cost-effective manner, IT managers can become the “yes” department when people request the latest tech.

3. Your device covered

Accidents happen – in fact, 30% of Australians have broken or smashed their smartphone, according to research by Yatango. However, with a device subscription service businesses don’t need to take the hit.

Companies attempting to take out fleet insurance can often run the gauntlet of expensive and complicated policies. Some are even penalised when claiming with extra fees. However, with a subscription service, organisations get protection with a device replacement threshold to cover any mishaps. This extra layer of protection means your fleet can continue to run smoothly and is looked after over the course of their useful life, so you don’t have to.

4. Subscription will save your business money

Your staff desperately need new devices, but budgets are tight, and funding is prioritised elsewhere. Your fleet of smartphones or tablets have to be extended way beyond their planned useful life, and IT takes the brunt of staff dissatisfaction.

With a device subscription service, not owning a physical asset takes the load off company balance sheets. This allows companies to move expenditure from Capital Expenditure and depreciating assets to operating expenditure, resulting in a reduced tax liability with fully deductible repayments during the tax period. Companies don’t need to invest large upfront costs in new smart devices. Moreover, lease financing can save companies up to 35% by utilising the device residual value. Device as a service frees up budget for use elsewhere and makes it easier to get access to the latest tech.

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Ray Shaw

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Ray Shaw ray@im.com.au  has a passion for IT ever since building his first computer in 1980. He is a qualified journalist, hosted a consumer IT based radio program on ABC radio for 10 years, has developed world leading software for the events industry and is smart enough to no longer own a retail computer store!

 

 

 

 

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