The global PCaaS market was valued at USD 21. 48 billion in 2020. It is expected to reach USD 176. 20 billion by 2026, registering a CAGR of 35. 36% during 2021-2026. The outbreak of COVID-19 led to the market’s decline.
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Notwithstanding the rise in demand for laptops because of the surge in remote working and learning requirements, global PC shipments in 2020 declined by around 7% due to the financial impact of COVID-19 and ensuing lockdowns. The pandemic also led to an adverse effect on the IT budgets of the businesses that affected the growth of the market in the short term. According to a survey by TechRepublic Premium poll, 62% of the respondents pointed out that they will tighten their 2021 IT budgets as a result of the coronavirus. Also, 26% of respondents reported that they would spend more on remote technologies that enable employees to work from home, 22% would spend more on security, 19% said most of their IT staff would work from home permanently, and 17% would postpone major projects.
Personal computers are one of the critical components of business infrastructure. With the advancement of technology, the cost and burden of managing day-to-day PC lifecycle are set to increase in the coming years. Companies are looking forward to reducing their infrastructure cost and attaining a high level of service quality. PC as a Service (PCaaS) is one such contemporary offering that can address this issue.
With the growing trend of PC as a Service (PCaaS) and the subscription model for procuring PCs as opposed to outright purchase, businesses are now shifting more of their IT hardware/device spend from capital expenditures (CAPEX) to operating expenditures (OPEX). When a company adopts the PCaaS model, they pay a monthly fee per user for the devices and services needed by their employees. There are significant benefits to this growing technological trend.
Many companies do not realize the sheer cost of supporting their end-user devices. Using a PCaaS service, such as Bizbang, alleviates the need to set up an in-house computer repair shop. These companies can then focus on their business and keep their employees productive.
By using PCaaS, upgrading the devices becomes less of a financial issue. Owning old and outdated technology can do more harm than good to business operations.
Dell, HP, Lenovo, and Microsoft have been at the forefront of the PCaaS and DaaS efforts, but they take different approaches for naming and delivering their services. Of these four firms, Dell is the only vendor to refer to its program as PCaaS. The PCaaS program that Dell offers includes first-party Dell laptops, desktops, and workstations.
However, other than Dell, Lenovo is also creating differentiating factors by helping firms move to PCaaS. This service ensures that the different organizations can have their dynamic devices along with immediate support as the company would provide their customers with the latest hardware devices and components. Lenovo shared that end-user cost per seat for IT can cost USD 1,500 per year, and the company believes that its PCaaS can cut 30% off of that cost.
Key Market Trends
Education is Expected to Register a Significant Growth
With teachers working almost 50 hours per week, management, selection, and support towards IT technology get challenging. PC-as-a-service offered schools to use technology free from ownership, with comprehensive support like security, hardware and software upgrades, etc. Dell Technologies PCaaS solutions, powered by Intel, benefit schools.
The effects of COVID-19 presented a challenge where businesses were required to respond quickly by assessing their readiness to accommodate the new ways of working and establish business continuity at pace and re-innovate the business models. As per UNESCO, as of 25 March 2020, 184 countries shut down schools nationwide, affecting more than 1.5 billion learners.
As-a-service procurement models in the education sector are empowering education leaders to prioritize digital progress. By enabling IT departments to evade the rigid vendor service agreements (adding CAPEX costs), the need to adapt essential digital tools promptly has been addressed.
By this, educational organizations move from a strict ‘CapEx’ model to an agile ‘OpEx’ approach. This enables the stakeholders to be able to make decisions focused on long-term learning outcomes with flexibility. The PCaaS model has benefitted the sector immensely, primarily by restricting immediate cost limitations. A flexible working model comes with enhanced visibility and control. In the challenging times of the COVID-19 pandemic, the education sector avoided shocks to business and guaranteed sustainable value from technology investments.
In 2020, as the schools implemented remote learning solutions via online platforms, PCaaS acted as a catalyst; it offered a modern way for schools to use technology inside and outside the classroom. It additionally addressed budgetary restrictions, added modern infrastructure at lower costs, and adhered to staff needs associated with more flexible ownership models.
United States is Expected to Hold the largest Share
The United States is one of the largest markets for PCs due to the presence of major players, such as Dell, HP Inc., Samsung, and others. The year 2020 proved to be one of the best years for the display monitors market due to increased demand from both the consumer and commercial segments.
However, in Q1 2021, 3.61 million PC units were shipped by Dell in the United States, a decrease from the 4.79 million PC units that the company shipped in Q4 2020. Dell ranked second among vendors for PC shipments in the United States during Q1 2021. The surge in demand resulted in the rapid growth of the market studied.
Additionally, in the commercial segment, customers prefer the PCaaS model offered by big companies, such as Dell, owing to the benefits offered, such as no upfront cost, fixed monthly rental, and latest features for antivirus, security, data removal, recycling, and problem detection. All these factors are expected to maintain the demand from the commercial sector during the forecast period.
Furthermore, the region is home to some of the major players in the industry, such as Microsoft, Dell EMC, and others, which are continually investing in developing the technology through R&D, strategic partnerships, and mergers and acquisitions, which have allowed them to gain a stronger footprint in the market.
For instance, in November 2021, Apple Inc. launched a new subscription service aimed at helping small-business owners manage the Apple devices used by their employees. With this service, the company may be able to serve small business owners with device subscriptions of phones, laptops, and tablets. Such PCaaS services targeted smaller businesses as expected to grow in demand.
The region is one of the biggest adopters of the cloud, and it has propelled the PCaaS and DaaS providers to reap the benefits offered by the cloud. For instance, VMware announced its plans for launching a new DaaS offering on the VMware Cloud on AWS, called Managed Desktops Solution. This is anticipated to boost the adoption of the technology over the forecast period.
The competitive rivalry between the players in the PCaaS market is high owing to the presence of some major players such as HP, Fujitsu, AWS, amongst others. Their ability to continually innovate their offerings has allowed them to gain a competitive advantage over others. Also, strong investments in research & development, strategic partnerships, and mergers & acquisitions have enabled them to gain a greater footprint in the market.
MAR 2021- SHI International announced the launch of its new SHI Mobile solution under DaaS and PCaaS services. SHI Mobile is a multi-carrier LTE data solution designed to provide the fastest, most reliable LTE data connections for employees working from home, on the road, at customer sites—any location with a poor Wi-Fi connection. SHI Mobile helps organizations streamline their carrier relationships and contracts for data plans as well as leverage SHI’s immense buying power for LTE-enabled devices from all major manufacturers
JUN 2021- SHI International announced the opening of a new office in Sydney, Australia. Adding to its existing regional offices in Hong Kong and Singapore, the new Sydney location streamlines SHI’s ability to serve and support customers in Australia and New Zealand by providing additional local support for PCaaS services to this growing Asia-Pacific market.
NOV 2021- WiteSand, announced a global partnership with SHI International Corp that will help organizations use cloud networking to reduce the impact of supply chain-related hardware purchasing challenges. This will help SHI to transition, “PCaaS” efficiently pc-based services directly to the customers. SHI will offer WiteSand’s full suite of cloud-delivered services to help its customers manage multi-vendor networks and bring brownfield networks to a cloud state, supported by AI/ML and end-user experience data to ensure a seamless transition.
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