HP Sets Sight on Desktop-As-A-Service Model


Apr. 13 2018, Updated 7:30 a.m. ET

What is desktop-as-a-service?

Desktop-as-a-service (or DaaS) is a cloud-based model that enables users to work from any location using their devices. DaaS, independent of device, network, and location, has an architecture where multiple users are allowed access to a software application. DaaS is fast gaining traction among startups and small and medium enterprises around the globe to reduce costs.

HP’s (HPQ) management has stated that DaaS is key to the commercial transformation of its Personal Systems business. The company offers end-to-end services in DaaS. HP recently announced a DaaS agreement with Apple to manage the latter’s iOS and Mac devices for select commercial customers.

HP expects its IP (intellectual property) across various verticals, including device management analytics, to drive demand for DaaS. The key challenges in this segment are providing life-cycle management services with a focus on security, latency, and reliability.

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Workspace-as-a-service market expected to reach $9.4 billion by 2019

According to MarketsandMarkets, the WaaS (workspace-as-a-service) market, which includes VDI (virtual desktop infrastructure), DaaS, hosted applications, and security solutions, is set to rise from $4.8 billion in 2014 to $7.9 billion in 2017, $9.4 billion in 2019, and $13.45 billion in 2022.

HP is expected to face competition from traditional communication providers AT&T (T) and Verizon (VZ) in DaaS as they already have expertise in this domain. However, HP is confident about its capabilities and expects to offer a portfolio of device management, security, and analytic products. HP believes DaaS to be a high-margin business, as it could generate revenue from both devices and services.


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