StarLabs Glossary / IT Procurement Terms
Device as a Service (Leasing vs Buying)
Paying a monthly fee for laptops and phones instead of buying them outright.
Device as a Service (DaaS) is a way of getting company laptops, desktops or phones for a fixed monthly fee per device, usually over two to four years. The fee often bundles the hardware with setup, warranty, support and a planned refresh, and the provider takes the devices back at the end of the term.
How it works
There are three common ways for an SME to get devices. You can buy them outright and own them. You can lease them, which spreads the hardware cost over a fixed term. Or you can sign up for a DaaS plan, which is a lease with services added on top.
A typical DaaS contract sets the device model, the term, the monthly price and what is included. That may cover imaging and setup, device management, warranty repairs, a loan unit while yours is being fixed, and secure data erasure when the device is returned. At the end of the term you hand the devices back and get new ones, extend the contract, or sometimes buy them at an agreed price.
The contract details matter more than the label. Two plans with the same name can include very different services, and early exit terms, damage charges and return conditions vary between providers.
| Buying | Leasing / DaaS | |
|---|---|---|
| Upfront cash | High, paid at once | Low, spread monthly |
| Total paid over the term | Usually lower | Usually higher, as you pay for financing and services |
| Ownership | Yours, including any resale value | Provider’s, unless you buy out |
| Refresh | When you decide and budget for it | Built into the term |
| Flexibility | Keep devices as long as they work | Locked in; early exit may cost extra |
| Admin | You arrange support, repairs, disposal | Often handled by the provider |
What it means for your business
Buying tends to suit a stable team that looks after its devices and is happy to run them for four or five years. Leasing or DaaS tends to suit a business that is growing fast, wants predictable monthly costs, or would rather not manage repairs and disposal itself. Compare both on total cost of ownership over the same period, and read the return and damage clauses before you sign. Ask your accountant how each option is treated in your books.
Common questions
Is it cheaper to lease or buy company laptops?
Buying is usually cheaper in total, because a lease includes financing and service costs. Leasing can still work out better value if it saves you staff time, reduces downtime or avoids a large upfront payment you would rather keep as working capital.
What happens if a leased laptop is damaged?
It depends on the contract. Some plans include accidental damage cover, while others charge you for repairs or for wear beyond normal use when the device is returned. Check this clause before signing.
Who wipes the data when leased devices go back?
Many DaaS plans include data erasure on return, but you remain responsible for the personal data on those devices. Ask for an erasure certificate for each serial number and keep it with your records.
Not sure whether to lease or buy?
Talk to us about device procurement and maintenance for your team.
Reviewed by the StarLabs technical team · Last checked 18 October 2026
