Commercial & industrial property owner operators have long been accustomed to purchasing water leak detectors outright. But with the rise of both the subscription economy and new leak detection technologies and services, there’s now another option: renting via Hardware-as-a-Service (HaaS).
HaaS isn’t a flash in the pan - it’s widespread and growing. According to a Mordor Intelligence report, the HaaS market is expected to grow to US$257 billion by 2028.
Clearly, purchasing water leak detection devices on a HaaS basis is set to become more popular. But how do you know that it will be the right fit for your business? Here are 5 factors we recommend considering:
The standard HaaS model is a rental, minimizing CAPEX outlay and focusing instead on OPEX-friendly recurring subscription payments. Whether this works for your business will largely depend on internal attitudes to CAPEX vs OPEX investment - something you are unlikely to be able to change.
If you’re undertaking a like-for-like water leak detection technology replacement and the incumbent solution is accounted for on a CAPEX basis (typically because it's always been bought outright), it’s likely your CFO will wish to continue in the same vein.
But when it comes to trialing new technologies that don’t yet have fully proven ROI, many organizations are reluctant to make significant CAPEX investments. If this is the case in your organization, you’re more likely to find success with the OPEX-friendly HaaS rental model, which allows you to pilot (and scale new!) technologies with a significantly smaller initial outlay.
It’s worth noting that while “pure HaaS” would be OPEX-only, many vendors offer blended CAPEX-OPEX pricing to accommodate customers’ payment preferences.
If you’re buying water leak detection technology that hasn’t changed in years, and is unlikely to in the future, then owning hardware outright and replacing it when it breaks or wears out is probably a safe choice.
But if you’re considering newer water leak detection technologies - including anything that’s smart or connected - renting via HaaS offers significant advantages. You can expect vendors to not only make feature updates, but also replace devices with newer models when the originals are broken or require replacement.
If having access to the best and latest technologies is important (and in our slightly biased opinion, it’s a game-changer for water leak detection) then HaaS is the way to go.
Water leak detection solutions available via HaaS rental often include cloud-based monitoring and real-time alert services out of the box, as well as integrations via APIs. There’s typically little to no requirement for in-house technical support, which makes it significantly quicker to get a solution up and running, protecting your assets from water leak-related damage and downtime.
Devices bought outright can be integrated into existing systems, including Building Management Systems. If you have very specialized requirements, you should be able to accommodate these, provided you have sufficient technical expertise available, either in-house or via a third party vendor. However, these integration efforts can be time-consuming and expensive, and are likely to delay solution deployment.
The HaaS model doesn’t just offer the device upgrades we’ve previously mentioned - it also typically includes a greater level of after-sales service in order to facilitate smooth delivery throughout the rental contract. Think replacing broken devices without dealing with endless warranty issues, and providing a level of service that supports the system staying functional and up-to-date without any additional costs or technical expertise from the user.
On the other hand, buying outright may work better for organizations who are considering relatively uncomplicated and robust devices, provided they have access to teams of technicians who are able to make straightforward repairs, or sufficient budget to simply replace devices outright.
If your business and the number of water leaks you experience are both relatively static, and you’re simply replacing existing technology, like-for-like, buying devices outright may suit your needs.
For more dynamic businesses - those whose property portfolios change, who undertake refurbishments, and whose water leak patterns are less certain - and for businesses who are piloting or investing in newer water leak detection technologies, HaaS is more attractive because rental offers both flexibility and scalability.
For example, it’s common to pilot new water leak detection solutions in a handful of use cases in a small number of buildings; and to expand to a fuller rollout across those buildings and the greater property portfolio based on the results of the pilot.
LAIIER's water leak detection solution is priced to accommodate our customers' varied needs when it comes to CAPEX and OPEX spend.
For more information, please view our pricing page, or book a call with our team for a one-on-one discussion!