Global MSP Launches Sustainable Device as a Service; NTT Data Partners With HP

NTT Data, a global MSP (managed IT service provider), has launched Sustainable Device as a Service to help customers reduce PC-related carbon emissions. The effort, which leverages HP Managed Device Services, "can be a significant contributor in driving down carbon emissions by up to 35% and provide up to 15% cost savings when it comes to TCO of laptops," NTT Data said.

Device as a Service (DaaS), also known as Hardware as a Service (HaaS), has gained some momentum in recent years. PC and device makers, distributors, MSPs and customers typically adopt the model to make hardware revenues/hardware costs more predictable over time. The model typically bundles monthly hardware costs with ongoing IT support costs -- similar in fashion to SaaS (software as a service) subscriptions. A typical DaaS model, according to NTT Data, includes assisting customers with:

• Planning their device needs,
• procuring the right equipment,
• configuring and deploying devices,
• providing ongoing support and analytics,
• managing repairs and replacements, and
• retiring devices appropriately (often called IT asset disposition, or ITAD).

Some MSPs and IT consulting firms are now striving to align DaaS with sustainable IT services. Among the reasons: Devices generate more than 50% of IT greenhouse gas emissions in most enterprises, Gartner estimates.

Sustainable DaaS and Managed IT Services: NTT Data, HP Executive Perspectives

To cut PC-related carbon emissions, NTT Data says the DaaS model is expanding to include electronic waste reduction through device reuse, recycling and responsible disposal.

In a prepared statement about the effort, NTT Data Chief Sustainability and Business Officer David Costa said: "NTT DATA is committed to continuously enhancing its end-to-end device lifecycle management solution with a strong focus on sustainability and we are proud to collaborate with HP, a leader in sustainability. Our Sustainable Device-as-a-Service is an integral part of our comprehensive portfolio of sustainability services to provide our clients with impactful solutions."

Added Grant Hoffman, HP's senior VP and general manager of Renew Solutions: “The Renew business unit is a strategic business for HP, empowering HP to support our clients’ growing requirements for device flexibility and sustainable offerings. We are proud to support NTT DATA as they bring their cutting-edge Sustainable Device-as-a-Service solution to the market, helping clients reduce their carbon footprint, drive down the TCO for their PC fleet, and improve the end user’s experience."

In a separate blog, Harish Acharya, NTT Data's strategic advisor for digital workplace services and solutions, shared more details about sustainable device as a service.

NTT Data and HP: Business Backgrounds, Overall Sustainability Strategies

NTT Data, based in Tokyo, generates roughly $30 billion in annual revenues. The company's U.S. efforts are based out of Plano, Texas.

NTT Data expects to be carbon neutral by 2040. The IT services company launched a new corporate sustainability strategy -- focused on prosperity, planet and people positive -- in April 2024.

Meanwhile, HP is striving to achieve net-zero carbon emissions across its value chain by 2040. Mary Beth Walker, VP and head of global channel strategy at HP, discussed the evolution of channel sustainability programs with Channelnomics CEO Larry Walsh in April 2024.

HP Renew solutions include carbon neutral computing services, device recovery services, sanitization services, deinstallation services and recycling services. HP Renew launched first in India, and expanded into additional markets during the company's fiscal year 2024, according to CEO Enrique Lores.

Sustainable Device as a Service: MSP, Channel Partner Opportunities and Challenges

The NTT Data sustainable DaaS announcement surfaced the same week as a somewhat similar move by Circular Computing and Total IT Global. Together, those companies are promoting DaaS services that involve carbon neutral remanufactured laptops.

Demand for such services appears strong. Indeed, the global device as a service market will reach $226.73 billion by 2032, up from $34.65 billion in 2024, according to Fortune Business Insights. That's a compound annual growth rate (CAGR) of 26.5%, the firm said.

Still, MSPs and channel partners need to move forward carefully before diving into the DaaS market. In some cases, financing and ownership options have been confusing for MSPs and their end-customers. Moreover, sustainable DaaS claims can potentially trigger greenwashing concerns from market watchers who want such claims to be independently audited and thoroughly documented.