The strategic rise of Hardware as a Service (HaaS)

Worldwide, businesses are re-evaluating traditional hardware ownership models in favour of more flexible, consumption-based approaches. This efficient model allows organisations and data centres to pay for their IT equipment based on usage, reducing the build-up of excess and idle hardware.

With two such examples, Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS), now well-established globally, will Hardware as a Service (HaaS) be the next evolution in IT consumption?

In this article, we’ll examine the strategic advantages of leasing IT hardware with HaaS, review data on the growing adoption of alternative ownership models, and explore how HPE GreenLake delivers a scalable, pay-per-use infrastructure solution aligned with modern enterprise needs.

What is Hardware as a Service?

From network switches to routers, firewalls and data storage devices, Hardware as a Service refers to manufacturers leasing their IT hardware to organisations on a subscription-based, or pay-as-you-go model. Companies utilise this equipment for as long as needed, before returning it to the manufacturer for servicing, maintenance and repairs.

Reinventing the traditional ownership model: the benefits of Hardware as a Service

Flexibility

By shifting away from the binary choice of owning on-premise IT hardware or fully migrating to the cloud, HaaS enables businesses to adopt a more bespoke approach. For instance, a business may require its infrastructure to remain in-house while still seeking the scalability and agility typically associated with cloud services. Hardware as a Service enables this hybrid approach, with the ability to scale resources such as data storage up or down as needed, with fees responsively adjusted to their usage.

Strategic cost savings

Through recurring payment plans, Hardware as a Service also provides access to the latest technology at a lower price, facilitating enterprise-level performance on a budget. By leasing hardware, the need for upfront costs is eliminated while IT overheads are lowered, freeing up capital to reinvest in strategic projects. As a result, HaaS is emerging as a popular, yet cost-effective solution.

Simpler IT hardware maintenance and management

Perhaps the most significant perk of Hardware as a Service is that maintenance and management are handled solely by vendors. This includes uptime guarantees, 24/7 maintenance, monitoring, patch management, IT hardware replacement, and change requests – all included in the monthly fee.

How popular is Haas compared to Saas and Iaas?

In conversations with our clients, one hesitation we sometimes hear regarding Hardware as a Service is that companies don’t own their equipment and must commit to a contract. However, with many businesses already utilising services like Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS), this model is already familiar to many and widely adopted.

In 2024, the global SaaS market was estimated to be worth $358.33 billion – up from $273.55 billion in 2023 – and has continued to experience substantial growth. As reported in a 2025 article by Transition Technologies PSC, 78% of small and medium-sized businesses have implemented SaaS applications.

IaaS is proving just as favourable for businesses worldwide. According to Fortune Business Insights, the global IaaS market was valued at $156.93 billion in 2024 and is projected to reach $712.46 billion by 2032.

Despite being a newer and lesser-known concept, HaaS is following a similar upward trend. In 2024, the global Hardware as a Service market was valued at approximately $153.7 billion and is expected to reach $3 billion by 2033, as analysed by Business Research Insights.

How Hardware as a Service extends product lifecycles in a circular economy

Traditional ownership models place the responsibility of maintenance and longevity on the end user, offering manufacturers little incentive to design for durability. This is particularly evident in consumer electronics such as smartphones and laptops, where short lifecycles contribute significantly to the global e-waste crisis, now responsible for approximately 70% of the world’s toxic waste. As a result, vast quantities of valuable materials, including rare metals, pile up in landfills rather than being recovered for future technology production. We examined this issue in our recent blog, ‘The Circular Economy: Turning E-Waste into Sustainable Technology.’

By contrast, the Hardware as a Service model shifts the responsibility of IT hardware performance and lifecycle management back to the manufacturer. Leasing hardware assets creates a strong incentive to extend the operational lifespan and ensure consistent performance over time. Within the framework of the circular economy, it also encourages a shared commitment between vendors and customers to repair, reuse, and reduce e-waste. By keeping IT hardware in circulation, HaaS also helps to mitigate supply chain risks, such as those experienced during the global chip shortage triggered by COVID-19.

HPE GreenLake: An ideal HaaS solution for employers

Today, nearly every component of IT infrastructure, including laptops, servers, firewalls, switches, and PCs, is available through a Hardware as a Service model. This shift reflects a broader industry movement toward sustainable IT solutions that align with both operational and environmental goals.

Among these solutions, HPE GreenLake stands out as a leading model. It helps organisations reduce waste and energy consumption by eliminating overprovisioning and avoiding unnecessary technology refresh cycles. According to Forrester’s 2022 study, ‘The Total Economic Impact of HPE GreenLake’, customers using GreenLake achieved up to 30% savings in capital expenditure through more efficient resource utilisation. With built-in capabilities such as metering, monitoring, and capacity management, HPE GreenLake empowers IT teams to optimise usage, align with sustainability targets, and drive innovation using the latest HaaS technologies.

As proud HPE partners, Steel City Consulting specialises in implementing HPE GreenLake services for our clients. Contact us today to discuss whether HPE GreenLake is the right fit for your organisation and infrastructure, or to explore other Hardware as a Service solutions.