Three laptops are five years old, the server is out of warranty, and the firewall stopped getting updates. Replacing everything at once means a large check, so it keeps slipping to next quarter while the equipment gets slower and less secure.
Hardware as a Service (HaaS) is one way out of that cycle. You pay a recurring fee that covers the equipment and the work to set it up, support it and replace it on schedule. At Wahaya IT we call it a hardware subscription, and we own the equipment.
Three ways to pay for equipment
| Buy | Finance | Hardware subscription (HaaS) | |
|---|---|---|---|
| Who owns it | You | You | The provider |
| Upfront cost | Full price | Little or none | None |
| Setup, support and refresh | Separate | Separate | Included |
| End of term | Keep, resell or recycle | Yours once paid off | Returned and replaced |
| Best fit | Cash on hand and a long service life | You want to own it but spread the cost | You want a fixed monthly cost and refreshes that actually happen |
We offer all three. You can buy equipment from us outright, finance hardware you will own through a third-party lender, or use a hardware subscription, where we own the hardware and you use it. The right choice often differs by device, so many of our clients end up with a mix.
What the accounting looks like
Buying usually costs least over the full life of the equipment, and you may be able to deduct it under Section 179 (see our post on Section 179). A subscription trades some of that for predictable payments and included service.
Don’t assume a subscription is just an operating expense. Under the ASC 842 lease standard, which applies to private companies for fiscal years beginning after December 15, 2021, most leases longer than 12 months go on the balance sheet, and leases are often embedded in IT service contracts. Ask your CPA how a specific agreement will be treated before you sign.
When a subscription makes sense, and when it doesn’t
A subscription tends to pay off when:
- You would rather have a known monthly cost than emergency purchases when something fails.
- Cash is better spent on hiring or other projects.
- Past refreshes kept getting postponed.
- You are adding staff or offices and want new equipment to be routine.
It is a weaker fit when you have strong cash reserves and a team that already handles purchasing and refreshes well, when equipment sits in long-lived, low-risk roles, or when early termination terms would lock you in if your needs change.
Refreshes are a security control
Once a manufacturer stops releasing updates for a device or its operating system, every new vulnerability stays open for good. Windows 10 reached end of support on October 14, 2025. We moved most of our clients to Windows 11 and replaced the machines that couldn’t run it. In February 2026, CISA ordered federal agencies to replace network edge devices that no longer receive updates and encouraged everyone else to do the same.
The cycle we recommend to every client is PCs every three to four years, servers at five, and firewalls at three to five. Whether you buy, finance or subscribe, track each device’s age, warranty and end-of-support date, and plan the replacement before that date arrives. Our post on building an IT refresh plan walks through it, and it is the core of our technology lifecycle management.
Ask how returned devices are wiped
Every laptop, server, copier and firewall you hand back holds data. If you keep client, patient or financial records, disposal is a compliance question. HIPAA requires policies for the final disposition of ePHI and the hardware that stores it. The FTC Safeguards Rule requires covered financial firms to dispose of customer information securely, generally no later than two years after it was last used. NIST SP 800-88 Revision 2, published in September 2025, is the current federal guideline for media sanitization.
Before you sign, find out who wipes returned devices, what method they use, and whether you get a certificate for each one. Include copiers and printers with internal storage. Our compliance services page covers how disposal fits into a written security program.
Questions to ask any provider
- What exactly is included: equipment, setup, support, warranty handling, refresh and disposal?
- What is the refresh schedule for each type of device, and what happens at the end of the term?
- Can you add or remove devices mid-term, and how does the cost change?
- What are the early termination terms?
- How quickly is a failed device repaired or replaced?
- How are returned devices wiped, to what standard, and what documentation do you get?
- How are devices patched, encrypted and protected during the term?
A refresh that keeps getting pushed back is easier to decide with numbers. We can lay out what buying, financing and a subscription would each look like for your equipment. Book an intro call and bring your device list.
FAQ
Frequently asked questions
What is hardware as a service (HaaS)?
Hardware as a service means you pay a recurring fee for equipment plus the work to set it up, support it and replace it on schedule, and the provider owns the hardware. At Wahaya IT we call it a hardware subscription. At the end of the term the devices come back to us and are replaced.
How do you account for hardware as a service?
Ask your CPA about each agreement before you sign. Under the ASC 842 lease standard, most leases longer than 12 months go on the balance sheet, including leases embedded in IT service contracts, so don’t assume a subscription is just an operating expense.
Sources: Microsoft Learn: Windows 10 release information and end of support; Microsoft Learn: Windows 11 requirements; BleepingComputer: CISA orders federal agencies to replace end-of-life edge devices (BOD 26-02), February 2026; NIST SP 800-88 Rev. 2: Guidelines for Media Sanitization, September 2025; eCFR: 45 CFR 164.310, HIPAA physical safeguards; eCFR: 16 CFR 314.4, FTC Safeguards Rule elements; EisnerAmper: How to adopt ASC 842 for private companies.
