Finding the Right Retail Tech: How to Use DaaS in Every Retail Situation

Retail companies, especially startups, are understandably conscious of their tech costs. Limited resources mean management can only do so much without breaking the bank. But today’s retail companies rely heavily on technology to grab market share. They can’t afford to skimp on tech like accounting software and point-of-sale (POS) systems if they want to stay competitive.

Still, how can retailers afford to not only purchase new hardware but also keep it updated with the latest software? A device-as-a-service (DaaS) model is the answer. DaaS is an $83 billion industry that gives startups and budget-conscious companies access to technology equipment for their daily operations.

How to Save Startup Costs Through DaaS Retail Tech

Companies need retail tech hardware to manage inventory and process payments. For instance, they’ll need POS systems to display stock information, record purchased items, and process payments. In addition, retail operations will need servers, network devices, and file storage systems for data management. Supporting devices such as receipt printers, barcode scanners, and card payment systems are also necessary for smooth retail operations.

Typically, hardware purchases are classified as capital expenditures (CapEx). CapEx entails buying fixed assets and spreading the payments over a set period. As such, it requires a significant amount of money to pull off.

For startups with limited budgets, allocating CapEx funds might be difficult during the early years. However, not getting the needed retail tech equipment can prevent a startup from turning a profit sooner.

By partnering with a managed service provider (MSP), companies can enter into a DaaS agreement and lease retail tech equipment instead. Companies can then treat the lease payments as part of their operating expenses (OpEx). And because DaaS requires a subscription, the monthly payment terms are more affordable.

Furthermore, managing and maintaining the retail hardware falls under the supervision of the MSP. Instead of allocating resources to create and maintain an in-house IT team, retailers can expect MSPs to perform needed maintenance and management tasks to keep leased devices working optimally.

What Makes DaaS a Popular Alternative?

By falling under OpEx, DaaS leasing agreements give companies much-needed flexibility to stretch their limited budgets. They also enable companies to scale their tech requirements based on their current needs.

Say product demand goes up and you need to open additional stores. MSPs can simply increase the number of subscribed devices. Conversely, slower demand can lead to fewer operating locations. The MSP and the client can then agree to reduce the number of deployed devices.

DaaS also helps retail companies stay at the forefront of new tech. Depending on the lease agreement terms, customers can get hardware upgrades when newer and better versions enter the market.

Going Beyond POS: Using Retail Tech for a Better Customer Experience

POS systems are essential, but there’s more to retail tech that employers need to consider. In fact, many of these devices will actually help you improve the customer experience. For instance, smart devices such as digital signage displays and information kiosks can help you bring in customers. Most MSPs have a range of innovative display devices and touchscreens that they can provide to companies and then manage.

Digital signage ranges from the large electronic billboards along highways to the wall-mounted LED TVs in brick-and-mortar stores. They continuously play video advertisements or post static announcement posters.

Information kiosks provide self-service opportunities for customers who need more information. Shoppers can use interactive maps to locate specific sections of the store, check the availability of items they want to buy, or learn more about occasional deals or promotions. With its touchscreen interface, information kiosks give customers the information they need to make a purchase.

How to Use DaaS for Your Retail Back-End Needs

DaaS lease agreements can also fill a retail company’s warehousing hardware and software needs. For instance, they can provide single-purpose devices that track the whereabouts of individual items. Examples of these trackers include handheld barcode scanners, QR code readers, and warehousing tablets. These devices should be able to connect with the company’s enterprise resource planning (ERP) or inventory management systems to gain access to warehouse information.

Managing inventory will also require other hardware to run inventory or ERP software. This includes label printers, warehouse scanners, digital signage, and desktop PCs — all of which can be acquired and managed through a DaaS agreement.

Utilizing MSPs for Seamless System Updates

A central responsibility of the MSP is to manage, maintain and secure leased devices. Through your lease agreement, they’ll ensure each retail tech device runs the latest operating system version. Failure to keep devices updated with security patches can lead to future problems such as data loss or data theft.

These critical updates require a strong cloud computing environment like Amazon Web Services (AWS). MSP administrators that can remotely connect to fleet devices can perform faster, on-time software updates and device management. In addition, remote administration enables admins to monitor login activities and ensure user access corresponds to user credentials.

Finally, remote device management lets MSPs administer security measures to protect devices and data. Admins can freeze or shut down compromised devices, locate missing or stolen equipment via geolocation, or wipe information from devices to prevent data theft.

Pair the Right Retail Tech With the Right Device Manager

Getting the right retail tech solutions to manage your daily operations doesn’t require a huge capital investment. MSPs that offer devices as a service can provide hardware and software tools that streamline retail sales operations.

The DaaS model helps organizations avoid spending too much of their capital expenditures and instead lets them lease hardware from a credible provider. The generated savings alone can help struggling companies stretch their budgets a little further.

More importantly, the right provider should include a reliable device management platform. A cloud-based device manager keeps the entire hardware fleet safe from vulnerabilities and exploits. It ensures devices receive the latest updates, patches and fixes that keep all hardware running optimally. Securing the entire hardware fleet from unauthorized access and attempts to breach data becomes easier as well.

Nadav Avni is the chief marketing officer of Radix Technologies, a provider of cutting-edge device management solutions.