10/16/2025
Hardware-as-a-Service Is Here—And It’s Not Optional
Why You Should Read This Article
If you're navigating the future of hardware, sustainability, or supply chain resilience—this article is for you. In under 15 minutes, it breaks down the case for Hardware-as-a-Service (HaaS) as a powerful, scalable answer to global waste, economic volatility, and outdated procurement models.
You’ll learn:
Why linear hardware consumption is failing.
How HaaS can cut costs, reduce emissions, and boost agility.
What logistics, tech, and cultural shifts are still holding it back.
Real-world examples from IT, pharma, aerospace, and more.
How REUZEit is building the infrastructure to make circular hardware work—at scale.
Whether you're a sustainability leader, ops exec, or just curious
I. Introduction – Hardware as a Service, A Better Way Forward
We’ve all been there. You buy an expensive piece of hardware, use it for a while, and when it's no longer needed—it sits. Maybe in a closet. Maybe in storage. Maybe it’s shipped off to some warehouse where no one remembers it exists. Eventually, it gets scrapped or recycled—if we’re lucky.
Now, scale that up to the enterprise level, where millions of dollars of perfectly functional equipment are collecting dust or being dumped because no one has a good plan for “what comes next.” This isn’t just wasteful—the system is broken. The old system of “make, take, destroy” was never built to last in a world where sustainability and efficiency are now table stakes.
That’s where Hardware as a Service (HaaS) comes in. It’s not just a clever acronym, it’s it establishes the basis for modern circularity for business. HaaS flips the script. Instead of one-time purchases, it enables hardware to be used, refurbished, and redeployed—again and again—creating new value and compounding cost avoidance and environment savings, every step of the way.
At REUZEit, we’ve lived through the problem and built the solution. We started in the garage, fixing lab gear and listing it on eBay, and today we manage tens of millions of valuable assets across our world-wide service hubs. The world is waking up to circularity—not as a trend, but as a necessity. The supply chain doesn’t bend to your timeline anymore. The companies that win will be the ones that can flex, “reuze”, and deliver value from their capital investments in equipment.
This isn’t about theory anymore, it’s already happening. But scaling it? That’s where things get tough. Logistics, tech, trust—all the messy middle stuff that most people don’t want to touch. But we’re in it. We’ve seen the future, but it doesn’t start with a purchase order—it starts with a pickup!
II. Why the World Needs Circular Hardware Models (Backed by Real-World Data)
The old model of hardware consumption is outdated, its dead. Manufactures know it. In a world where equipment lifecycles are getting shorter, costs are rising, and climate goals are pressing down hard, “buy, use, discard” is not just inefficient—it’s irresponsible.
1. E-Waste Is Skyrocketing
In 2019 alone, the world generated 53.6 million metric tons of electronic waste. Less than 20% of it was formally recycled. By 2030, that figure is expected to hit 74 million metric tons, making e-waste the fastest-growing waste stream (United Nations University https://www.itu.int/en/ITU-D/Environment/Pages/Spotlight/Global-E-waste-Monitor-2020.aspx ).
Why? Because equipment is being turned over faster, and few systems exist to capture, refurbish, and redeploy it. We treat hardware like disposable cutlery.
2. Manufacturing Is a Carbon Bomb
Up to 80% of a computer’s carbon footprint comes from the manufacturing phase, not its usage (Apple Environmental Reports :https://www.apple.com/environment/pdf/products/iphone/iPhone_8_PER_sept2017.pdf ). That means every time we replace instead of reuse, we’re hitting the emissions accelerator.
According to a study in ScienceDirect, doubling a laptop’s lifespan from 3 to 6 years can cut its annual carbon footprint in half. Simple, but similar logic applies across everything from servers to medical devices.
3. Supply Chain Pressure Isn’t Going Away
The World Economic Forum estimated that pandemic-related supply chain disruption cost global manufacturers $1.9 trillion (University of Cambridge report: https://www.cam.ac.uk/research/news/its-high-time-for-alliances-to-ensure-supply-chain-security-researchers-urge ). Chip shortages, transport backlogs, and geopolitical tension have made hardware procurement unpredictable—and expensive.
In 2021, delivery times for some new servers stretched past 9–12 months. During that time, demand for refurbished IT infrastructure surged by over 25%, (https://www.parkplacetechnologies.com/blog/are-you-facing-hardware-delays-due-to-the-global-chip-shortage )
4. Industry Embraces Used—and Profits
Circular hardware models aren’t just about emissions—they’re about economics.
HP’s Device-as-a-Service (DaaS) offering allows businesses to lease workstations bundled with analytics, support, and recycling. It’s so successful that HP reported double-digit growth in DaaS every year since its 2017 launch (HP Annual Report, 2023 https://www.hp.com/us-en/hp-information/investor-relations.html ).
Cisco’s Refresh Program has saved clients millions by reselling fully tested and certified pre-owned network equipment. This isn’t a side hustle—Cisco has reported billion-dollar revenue milestones from reuse and resale across the product lifecycle (Cisco Sustainability Reports https://www.cisco.com/c/en/us/about/csr/supply-chain-responsibility.html ).
European Union Green Public Procurement (GPP) guidelines now incentivize governments to purchase refurbished tech. In countries like France and Germany, refurbished laptops are now used in schools and local administrations—cutting public IT spending by 30–50%, while meeting environmental mandates. https://green-forum.ec.europa.eu/green-public-procurement_en
5. Circularity Is Going Mainstream
The shift isn’t niche anymore. The global market for refurbished electronics was valued at $85 billion in 2023, projected to reach $150 billion by 2030, growing at a CAGR of 9.5% (Fortune Business Insights: https://www.fortunebusinessinsights.com/industry-reports/refurbished-electronics-market-102704 ).
More than economics, this is about access. In emerging markets, affordable reused equipment is opening doors in education, healthcare, and industry. It’s tech redistribution at scale.
III. The Core Benefits of the HaaS Model
At a glance, Hardware-as-a-Service sounds like a leasing model with a fancy name. But peel back the layers, and it’s a complete mindset shift—one that redefines how businesses think about ownership, uptime, and value.
1. Budget Relief and Predictable Costs
Let’s start with the dollars. One of the biggest drivers behind the HaaS boom is cost predictability. Instead of massive capital outlays for equipment that depreciates the moment it’s unboxed, HaaS users pay monthly or quarterly fees. For IT departments, that’s the difference between budget battles and smooth sailing. MarketsandMarkets reported that Device-as-a-Service Market is expected to grow from USD 50.3 billion in 2021 to USD 303.6 billion by 2026; a CAGR of 43.2% implying that more than half of PCs will be sold in the DaaS market. ( https://www.technavio.com/report/pc-as-a-service-market-industry-analysis )
For smaller businesses, that means access to enterprise-grade hardware without needing enterprise-grade capital; that’s going to change things for business lenders too, but I digress… And when something breaks? It gets replaced, not re-budgeted.
2. Built-in Lifecycle Management
Traditional ownership puts the burden of upkeep on the buyer but with HaaS, maintenance, updates, and upgrades are part of the package. Providers are incentivized to keep hardware running longer and more efficiently. That’s good for customers—and great for the environment.
This flips a long-standing pain point. According to the United Nations, we generated over 53.6 million metric tons of e-waste globally in 2019, and only 17.4% of it was officially documented as collected and recycled. (https://www.itu.int/en/itu-d/environment/documents/toolbox/gem_2020_def.pdf) With HaaS, the provider stays in the loop—ensuring equipment doesn’t just disappear into a landfill at end-of-first-use.
3. Sustainability That’s Built-In, Not Tacked-On
Most people think “green” means more expensive. HaaS proves otherwise. By keeping hardware in circulation longer, businesses reduce emissions associated with manufacturing and transport. A study published in ScienceDirect showed that extending a laptop’s use from 3 to 6 years can reduce its annual carbon footprint by up to 50%. https://www.sciencedirect.com/science/article/abs/pii/S095965261500801X )
And here’s where the circular economy comes in: hardware gets picked up, repaired, certified, and redeployed. Nothing gets wasted or forgotten. HaaS closes the loop, avoiding costs, pollution and demand on already stretched natural resources.
4. Faster Innovation Cycles
Need a tech refresh every 18 months instead of every 5 years? HaaS makes that possible. Businesses can roll out new capabilities without waiting for legacy assets to “fully depreciate.” That agility is priceless in sectors like healthcare, life sciences, manufacturing, and pretty much every industry nowadays, where staying behind means falling behind.
IV. The Hidden Challenges of HaaS
While Hardware-as-a-Service (HaaS) promises capital efficiency and sustainability, its operational backbone is fraught with hidden complexities. Understanding these challenges is critical for companies seeking to scale HaaS offerings or integrate reused hardware into their operations.
A. Logistics
Pickup & Retrieval: Collecting surplus equipment from legacy owners remains one of the costliest and most unpredictable phases of the HaaS lifecycle. Equipment is often dispersed across global sites and embedded within critical infrastructure. Dismantling requires specialized labor, adherence to safety protocols, and sometimes cross-border compliance. According to SupplyChain247, logistics account for up to 10% of reverse supply chain costs.
"We spend more time planning the retrieval of used servers than shipping new ones," noted Tina Green, VP of Operations at a Fortune 500 OEM. "Border regulations, packaging standards, and customer site constraints all play a role."
Storage Needs: Warehousing becomes a necessity when demand doesn’t align with supply. REUZEit alone operates over 160,000 square feet of warehousing capacity globally to manage this disconnect. Storage must also support segregation by asset type, condition, and refurbishment status.
Reconditioning Bottlenecks: Historically, each item required up to 45 minutes to inspect, test, photograph, and list for resale. While REUZEit’s AI platform can automate these steps in seconds, the world has a lot of catching up to do, operational bottlenecks persist. Human verification, compliance documentation, and physical handling still limit throughput. As McKinsey reported, “Automation in reverse logistics offers a 30–40% efficiency gain, but human oversight remains essential, especially for high-value or sensitive assets.” (https://www.mckinsey.com/industries/logistics/our-insights/automation-in-logistics-big-opportunity-bigger-uncertainty )
B. Economic and Strategic Risks
"We're walking a tightrope," admitted Carlos Mendes, SVP at a global industrial equipment firm. "Promoting circularity is essential, but it can erode our margins if not carefully managed."
Variable Asset Quality: Returned hardware rarely follows predictable patterns in volume or condition. Variability in firmware, cosmetic damage, and lifecycle stage complicates resale valuation. This unpredictability hampers accurate forecasting and pricing, especially in high-turnover sectors like data centers.
C. Coordination and Tech Integration
ERP Complexity: Integrating HaaS inventory with procurement, maintenance, and sustainability modules requires a tightly integrated ERP. Off-the-shelf systems often lack reverse logistics support, inspections and refurbishment tracking, quality inspections, leading to patchwork integrations and data blind spots that result in poor quality equipment redeployments.
As SAP’s Head of Product Strategy, Thomas Saueressig, noted: “Circular models like HaaS require visibility across asset lifecycles. Companies need ERP systems that don’t just track procurement, but also usage, recovery, and resale.”
Reverse Supply Chains: Unlike traditional supply chains, reverse flows involve more actors—retrievers, inspectors, refurbishers, resellers—and are far less predictable. Delays in any node ripple across the system, straining SLAs and customer expectations. UPS’s 2024 logistics study revealed that reverse logistics are 3x more likely to suffer from coordination delays compared to forward chains. (https://www.transportworks.com/post/ups-q4-2024-earnings-insights-for-logistics-success)
V. Real-World Evolution: Industries Embracing HaaS
The shift from traditional hardware ownership to subscription-based models is gaining momentum across various sectors. Here's how different industries are adapting:
1. IT and Office Equipment
Leading tech companies like Dell, HP, and Lenovo have pioneered Device-as-a-Service (DaaS) offerings, allowing businesses to lease laptops, desktops, and peripherals with bundled services like maintenance and support. This model provides flexibility and ensures access to up-to-date technology without significant upfront costs.
Dell Technologies: Offers Dell APEX PC as a Service (PCaaS), combining hardware, software, lifecycle services, and financing to simplify PC lifecycle management. Dell (https://www.dell.com/en-us/dt/apex/device/pc-as-a-service.htm)
HP: Provides HP Device as a Service (DaaS), a complete solution that combines hardware, insightful analytics, proactive management, and services for every stage of the device lifecycle. Insight HP (https://www.hp.com/gb-en/services/workforce-solutions/workforce-computing/managed-device-services.html)
Lenovo: Introduces Lenovo TruScale Device as a Service, redefining the role of technology in the user experience by bundling hardware, software, and services. Lenovo (https://www.lenovo.com/gb/en/daas/)
2. Restaurant and Retail Sectors
In the hospitality industry, Oracle offers point-of-sale (POS) systems through a HaaS model, bundling hardware like touchscreens and receipt printers with software and support services. This approach simplifies operations for restaurants and retailers, enabling them to manage costs effectively.
Oracle: Provides comprehensive POS hardware solutions, including self-service kiosks, traditional point-of-sale systems, kitchen display systems, and mobile devices. Oracle (https://www.oracle.com/food-beverage/restaurant-pos-systems/pos-hardware/)
3. Industrial and Manufacturing
Trimble provides fleet management solutions on a subscription basis, offering in-cab hardware with GPS tracking and diagnostics. This model enhances operational efficiency for businesses with large vehicle fleets.
Trimble Transportation: Offers fleet management solutions ideal for small and medium-sized heavy-duty fleets, going beyond ELD with complete fleet management. fleetmanagement.trimble.com
4. Healthcare and Hazardous Industries
Aegex offers intrinsically safe tablets and IoT devices for industries like oil and gas, allowing companies to equip field workers with necessary technology through subscription plans. This ensures safety compliance and reduces capital expenditure.
Aegex Technologies: Provides the Aegex10 Intrinsically Safe Tablet, purpose-built for use in the most hazardous zones of explosive environments. Aegex Technologies (https://aegex.com/solutions/aegex10-intrinsically-safe-tablet)
5. Agriculture
In agriculture, Drone-as-a-Service models are emerging, where farmers can access drone technology for crop monitoring and spraying on a subscription basis. This reduces the need for large capital investments in equipment.
ZenaDrone: Offers Drone-as-a-Service (DaaS), a flexible and convenient pay-as-you-go model for various applications, including agriculture. ZenaTech (https://www.zenatech.com/drones-as-a-service-daas/)
6. Defense and Aerospace
Lockheed Martin provides testing services for flight hardware, including thermal vacuum, thermal cycling, and vibration testing, as part of their Testing as a Service offerings. These services support the development and validation of aerospace components.Lockheed Martin (https://www.lockheedmartin.com/en-us/products/testing-as-a-service.html)
Lockheed Martin: Offers environmental testing services for flight hardware, including thermal vacuum (TVAC), thermal cycling, and vibration testing.
7. Life Sciences and Pharmaceuticals
Pfizer has engaged in outsourcing partnerships to manage IT support and laboratory tasks, demonstrating a move towards service-based models in the pharmaceutical industry. This approach allows for flexibility and focus on core competencies.sycor-group.com (https://sycor-group.com/de-en/technology-services/references/references-technology-services/pfizer-outsourcing.html)
Sycor mbs: Has been a service partner for Pfizer since 2004, providing support for internal IT support teams and laboratory tasks. sycor-group.com
8. Oil and Gas
Schlumberger offers Infrastructure as a Service (IaaS) solutions, providing private cloud services that include hardware maintenance, system software management, and support. This enables oil and gas companies to focus on their core business while outsourcing IT infrastructure management.software.slb.com (https://www.software.slb.com/services/digital-transformation-services/transition-services/infrastructure-as-a-service-solution)
SLB (Schlumberger): Provides Infrastructure as a Service (IaaS) solutions, enabling efficient, scalable, and cost-effective options for operating IT infrastructure. software.slb.com
VI. Building the Future: REUZEit’s Model
While many companies are still conceptualizing what circularity could look like in practice, REUZEit is already operating in the future—and scaling it.
Born out of necessity and matured through real-world pressure, REUZEit’s model isn’t theory. It’s a working system, engineered to handle the complex logistics, digital infrastructure, and data flows required to turn surplus hardware into valuable, usable assets—again and again.
Platform Approach: AI + Logistics + ERP Integration
At the core is REUZEit’s proprietary, AI-powered circular asset management platform. It’s more than a marketplace—it’s an ecosystem. Equipment flows into the system through supplier sites, is picked up and serviced by certified partners, and reenters the economy through resale, redeployment, or donation.
AI automates listing, valuation, and condition classification—slashing the historical bottleneck of manual processing. What used to take 45 minutes per item now takes seconds. Meanwhile, ERP integrations ensure visibility from intake to final disposition, tying in procurement, depreciation, and ESG reporting all in one place.
As Ryan Andrews, Co-Founder and CRO, puts it:
“This isn’t just a resale engine—it’s an entire circular operating system for the industrial economy.”
Visual Dataset Advantage: The Blue Book of Capital Equipment
What Kelley Blue Book is to cars, REUZEit is building for hardware. Using machine learning and a massive library of equipment images and specifications, the platform learns to recognize, categorize, and appraise used equipment across more than 250 product categories.
With over hundreds of thousands of assets already documented and then of thousands more flowing in annually, this dataset is positioning REUZEit to offer something the industry has never had: reliable, data-backed fair market values for used equipment, globally. That transparency fuels smarter decisions, faster sales, and better forecasting.
Andrei Klimanov, REUZEit’s CTO, summarizes the vision:
“We’re building the world’s largest visual dataset for industrial hardware, not just to recognize it—but to understand how it moves through the world.”
Client Validation: Sticky, Scalable, Proven
REUZEit’s credibility isn’t just technical—it’s commercial. Some of the world’s most respected life science companies are already embedded in the platform:
ThermoFisher (125,000 employees as of 2024)
Abbott (114,000 employees as of 2024)
Moderna, Gilead, Illumina, and others
These aren’t pilot projects—they’re full-scale rollouts. With over 4,800 supplier warehouse locations across 21 countries, and 272,000+ registered users, REUZEit has already achieved what few startups can claim: deep entrenchment in enterprise operations.
What’s more, client churn is virtually zero. Every supplier signed to date has stayed on the platform— Why? Because it pays them money. Its profitable! The testament to the model’s economic and operational value.
VII. Conclusion – A Future Too Important to Wait For
The challenges are clear: resource scarcity, broken supply chains, air and water pollution destroying the oceans, and a international push for ESG compliance that isn’t going away. At the same time, hardware sits idle or gets discarded in labs, factories, and tech hubs all over the world—while others wait months or years for access to the same equipment.
This is the opportunity. Hardware-as-a-Service isn’t just a smart business model—it’s the missing infrastructure in a world that can’t afford linear waste anymore. It’s about resilience, access, and smarter use of what we already have. HaaS delivers financial efficiency, sustainability gains, and operational agility all in one package.
And yet, the systems and collaboration required to make this work are still fragmented. That’s the work. That’s why we’re building REUZEit.
I’ll be honest: I wanted to attend Circularity 2025 this month. I’ve been dreaming of joining that stage, connecting with other leaders who care about the same mission we do. But the reality is—I’m too deep in the build. Too focused on wiring up the platform, refining AI, expanding partnerships, and shipping the future of the circular economy in real time.
So instead of being there, I’m writing this. We need help. The mission is too big for one company. If you’re reading this and you’re in the business of sustainability, logistics, lifecycle management, impact investing, or just making systems that work better for the circular economy and society across the world—we want to work with you.
Transforming how the world handles hardware isn’t just good business. It’s a strategic necessity. It’s a responsibility to future generations. And it’s happening now, with or without us.
Let’s build it together.
About the Author
Justin Andrews is the Co-Founder and CEO of REUZEit Technologies, a next-gen circularity platform transforming how the world manages surplus equipment. With over 15 years of experience in asset lifecycle management, Justin has built world-wide systems that turn industrial waste into scalable, sustainable value. When he’s not wiring up the future of reverse logistics, he’s writing essays like this—because building a better system shouldn’t be done in silence.
