Hewlett-Packard bets on device-as-a-service for growth in business

Company wants to be a part of the digital transformation undertaken by small enterprises in India

Personal computer maker Hewlett-Packard (HP) is banking on device-as-a-service (DaaS) solution for small and medium Indian businesses to boost growth. The company, which has a 29.5 per cent share in India's personal computer market, says this would help small enterprises reduce capital expenditure for their devices.

The US-based hardware technology major started the DaaS solution for assistance in computers, security, service and the timely replacement of devices two years ago.

"We have started this in India about six months back. DaaS is like you buy this thing as an operating model and we provide managed services for enterprises," Ketan Patel, Senior Director, Personal Systems, HP India, told Business Standard, in an interview.

Patel added that the company aims to be a part of the digital transformation undertaken by the small enterprises and assist them in technology adoption through an "operating expenditure" model.

HP has already brought two key customers on board- one of them being automobile major Maruti Suzuki.

"We are looking at the digital transformation of small businesses with our concept of DaaS, wherein we are saying that you leave your IT worries to us and we will make sure the entire IT infrastructure, specifically relating to access points, is managed and refreshed by us over a period of time so that you get the latest technology at the right point of time," added Patel.

HP will offer a contract of 3-5 years with enterprises based on their requirement.

Market rival Dell also offers a similar service called the workspace-as-a-service, which is an integrated solution for software and hardware problems in the US market. The company provides this to enterprises through an operating expenditure model.

Patel also expects the implementation of the Goods and Services Tax (GST) to help create a higher demand for desktops across enterprises. He is, however, seeking more clarity from the government to resolve the "inconsistency" due to the different GST tax slabs for desktops (18 per cent) and monitors and printers (28 per cent).

"In our category there are some inconsistencies in terms of applicable tax rates for desktops, monitors and printers. We are seeking clarification on that. We will get some clarity in the next few days on pricing. We will have to abide by the rules after the final implementation," said Patel when asked about a likely increase in prices of HP products after the GST rollout in July 1.