Technology changes fast, and systems deemed “cutting edge” one day can be considered obsolete the next.
For geospatial professionals, this presents some vexing challenges. How do you stay on top of the latest technological advances to make sure you’re working effectively and efficiently? How can you budget for the equipment and systems you currently need and plan ahead for inevitable change?
For many, the answer to these questions is “Hardware as a Service” or “HaaS.” This business arrangement lets companies and organizations “subscribe” to hardware and software by paying regular installments instead of spending large amounts of money upfront.
One of the leaders in HaaS in the geospatial sector is Trimble. Their subscription-based program gives customers simplified pricing, bundled hardware and software solutions, access to the latest technology, and improved data management. To learn more, Geo Week News recently spoke with Brian Roach, Digital Construction Sales Manager at Trimble Inc., and Brad Lingbeck, Digital Construction Manager North America, Trimble, Civil Engineering and Construction.
Geo Week News: Can you describe Trimble’s HaaS offering?
Brian Roach: We have an all-inclusive premium hardware as a service offering. It includes hardware, subscription licensing, support, training, installation as well as accidental damage and technology assurance for all serialized and non-serialized components.
GWN: How did you develop this model?
Brad Lingbeck: Historically, there were a few different ways to acquire Trimble equipment. You could purchase it with cash. You could finance it. You could rent it. But now we have an option to subscribe to it. And I think the reason why we went into this subscription model was the feedback from the field. Existing customers were having problems with mismatched firmware, software, and hardware. They had damaged or broken equipment. Some of our newer customers had reservations about purchasing technology, because they felt that they were purchasing yesterday's technology. Also, some felt it was easier to do business with a bundled solution versus doing it a la carte.
GWN: How do customers determine if the HaaS approach is right for them?
Brian Roach: Capital is expensive nowadays, and everybody's trying to watch the bottom line. One of the questions that we ask our customers is, “What's your capital worth? Is it more important for you to purchase that outright and take the risk of repairs and replacement, or does it make more sense to look at the subscription options that are available and turn around and reinvest that capital back into your organization?” That really seems to resonate with our customers. It makes a lot of sense to them.
GWN: What kinds of customers can benefit from Trimble’s HaaS program?
Brian Roach: Over the last five years, Brad and I have really been focused on this subscription program. Initially, we thought this is going to be a great solution for those small and mid-sized owner operators, folks that may not have the capital that we just talked about. So, as the program has evolved over the last five years, we've really seen that it's all across the board. We have customers that are new to technology, and we've got folks that have been using competitive hardware and software and have made the transition into Trimble. And we've got the big players. International companies across the board are taking advantage of this program with Trimble.
GWN: You are both focused on North America, but talk to us about the popularity of HaaS throughout the geospatial sector. Is this a popular approach worldwide?
Brad Lingbeck: We have some other programs that are available for subscription that work better in some foreign countries, places where technology assurance or accidental damage would be considered insurance, and we're not able to bundle those things together. That's why we've got four different subscription models. It’s a way for us to meet the clients’ needs and be flexible enough to give them what they're looking for.
GWN: Can you give us an example of how Trimble’s HaaS has helped a geospatial client improve operations or save money?
Brian Roach: We had a customer that initially signed up for our subscription program three years ago. They were coming up on their renewal, and so they were trying to determine if HaaS still made sense. We were able to put together some information to show the customer the difference between purchasing the equipment and software versus the subscription model. They went back and looked at the repairs and warranty work and service calls, and the customer was able to save over $60,000 over the last three years. When they saw that, they said, “Yeah, this is a no brainer.”
GWN: HaaS would seem to be an ideal fit for customers that have significant budget constraints, like government agencies and municipalities.
Brad Lingbeck: We had a client had that lofty ambitions for growth,
but for them to meet their growth expectations, they would need five-plus years. With the subscription model, they were able to implement a lot more equipment into their sites and enable many more sites with technology at a faster rate. Because their CapEx spend was not going above their budget, they were able to feather it in over the length of a subscription, and triple or quadruple the size of their fleet and not impact their budget. We see this with municipalities, as well. They have budgets that they're constrained to, and sometimes they can only get a couple of pieces of equipment to the field. With this subscription model, they're able to do much more with the same capital expense.
GWN: One of the advantages of HaaS that we hear about is its ability to adapt to changes in technology. How does Trimble handle that?
Brian Roach: Rather than focusing on a particular product, the Trimble team is really focused on the solution for the customer. That can encompass hardware, software, and entitlements, and that gives the customer assurance.
