Evergreen Services: The New Age Answer to Capex Crunch | Blog

In today’s fiscally and environmentally conscious times, a differentiated technology asset ownership model can help enterprises both reduce capital expenditures and improve sustainability. Read on to learn about the rise of evergreen services.

Now more than ever, enterprises are under increased pressure to rationalize expenses in the current unpredictable global business climate with the ongoing Ukrainian war, recession clouds, etc.

At the same time, enterprises around the world are quickly pivoting and incorporating sustainability as a key component of their innovation charters. Topics like reuse, recycle, and electronic waste (E-waste) management are looked at with increasingly serious and concerned lenses.

Over the last few years, device as a service (DaaS) and especially evergreen services (as a variation of DaaS) have emerged as an attractive option for enterprises to simultaneously tackle both Capex reduction and environmental sustainability commitments. Overall, DaaS is projected to grow at a compound annual growth rate of 10-15% this decade, and evergreen service is expected to contribute heavily to this growth.

What are evergreen services?

DaaS is the bundling and offering of management services and IT equipment – like personal computers, smartphones, and mobile devices – in a paid subscription model, as an alternative to purchasing these devices individually.

By extension, evergreen service is an end-user asset ownership model that helps customers convert their device acquisition-related Capex to an operating expense (Opex) while simultaneously rationalizing management overheads and providing users with increased flexibility and improved experience.

In contrast to DaaS, evergreen service puts a greater emphasis on sustainability and device performance management, and reusability. The primary focus is on meeting pre-set device performance standards, regardless of the age of the device. It also allows customers access to the latest technologies and customized services, such as device configuration, installation, data migration, on-site support, technology refresh, etc., without incurring large upfront costs.

Evergreen services: The key benefits

Evergreen services can help enterprises achieve their sustainability goals. The core philosophy of this construct is reducing e-waste by upgrading existing devices to meet performance parameters versus replacing devices outright. Existing devices are kept current and performant via updates/upgrades, spare replacement, etc. This is a stark departure from the traditional DaaS model, where devices are mandatorily replaced at the end of a pre-defined number of years.

Evergreen service also improves the user experience, creates a more stable environment, and reduces overall incidents. Due to an increased focus on proactive monitoring and managing end-user devices, a large portion of device issues are proactively identified, and preventive actions are taken to avoid service interruptions to end users. To enable this, a dedicated/shared monitoring team is deployed to perform eye-on-the-glass monitoring of the device estate using a digital experience management (DEM) tool.

The table below summarizes the key differences between evergreen and traditional DaaS models:

Evergreen services are slightly more expensive on paper compared to traditional DaaS services. But the long-term benefits of improved user experience, reduced incidents, and sustainability value make evergreen services an attractive proposition for today’s environmentally conscious businesses.

If your enterprise is interested in evergreen services, its pricing model, and price benchmarks across geographies, please email [email protected].

Learn more about current pricing and tech services our recent blog, Demystifying Common Low Code Pricing Models and How to Choose the Right Platform.