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Microsoft debuts Technology-as-a-Service with negative 3.3% interest rates for SMBs in new AYB membership program

itsarectangle 673 186 September 20, 2016 at 06:43 PM in Memberships (3) More Microsoft Store Deals
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Last Edited by itsarectangle September 21, 2016 at 11:08 AM
This is more for the business-owners out there, but as a dedicated SD'er felt obliged to share what I think is a pretty good deal.

They have 3 plans, which in effect take tech ownership out of the equation (TaaS model), geared mostly for small business owners, and with a surprising negative leasing/interest rate):

$25/mo,$35/mo,$60/mo. [microsoftstore.com]

Microsoft has quietly debuted a new membership plan that's being touted as one of the first Technology-as-a-Service models in the industry. Customers lease their devices, get new devices every 2-3 years, they bundle in support, software, even ADH and in-store services, kind of like a new tech membership.

The kicker is that the membership model is cheaper than buying the devices, to the tune of -3.3%. Normally my posting a 'deal' like this would get ripped apart (I do understand residual value is going to the big corporations!), but if they can secure good cheap leasing for me via whatever brokering with OEMs (in this case Dell), and me and my employees get new devices every 3 years and IT support on top, then I'm all for it.

I can't afford to hire internal IT staff, so I couldn't be happier with the purchase.

Edit: I did the math, and as a small business owner myself no upfront costs on my tech really opens up a lot of potential to put those funds to better use elsewhere in trying to grow my business. Kudos to Microsoft this round.
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21 Comments

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#2
I think this is a game changer for Technology delivery to small businesses. MSFT will make a quick buck.

I still think that IT/Technology should be internal for security/confidentiality purposes. I am extremely nervous of these "___ as a service" models. Not to mention Win 10 privacy policies.

If you are a small business owner (<50 employees) this model may make sense, but read the fine print - if MSFT is data logging, I would be extremely nervous.

If they could combine the hardware and software (Microsoft outlook/office) in a single discounted bundle - I think they will have a winning combination. This should be making Dell/HP/Lenovo/Asus extremely nervous.
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#3
$MSFT will boost tomorrow due to 4B buyback plan.
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#4
Quote from sphere2040 View Post :
I think this is a game changer for Technology delivery to small businesses. MSFT will make a quick buck.

I still think that IT/Technology should be internal for security/confidentiality purposes. I am extremely nervous of these "___ as a service" models. Not to mention Win 10 privacy policies.

If you are a small business owner (<50 employees) this model may make sense, but read the fine print - if MSFT is data logging, I would be extremely nervous.

If they could combine the hardware and software (Microsoft outlook/office) in a single discounted bundle - I think they will have a winning combination. This should be making Dell/HP/Lenovo/Asus extremely nervous.
Yeah what he said!! Where is the Surface plan!!?
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#5
Buyback was expected, dividend increase was the smallest since 2010. No boost, a drop.
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#6
These gimmicks are really only cheaper if you buy new equipment every three years. Hardly anybody does this if they are trying to lower their long term costs. Usually better equipment will last comfortably for 5 years. Here, you are just signing up for a never ending payment, so long as you stick with the program.
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Last edited by trza September 20, 2016 at 08:00 PM
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#7
retail prices are outrageous for the specs. something like the ThinkPad p50 spec'd out i7 touchscreen w/ digitizer w/ 2gb graphics can be had for $1500 (w/ the occasional promo offers) + something like a 850 pro ($100)

[in 2015] "the federal agency has boosted the so-called “IRS safe harbor” limit businesses can deduct on a capital investment within a single year from $500 to $2,500."
Research. Do the math.
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Last edited by rangerz September 20, 2016 at 08:02 PM
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#8
I don't see any software other than windows 10 bundled in. Not great laptops. Even when buying for business, I prefer getting slickdeals on my equipment.
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#9
This isnt that impressive. Your return is farked after the first year. And you could basically just buy something with better specs at nearly similar first year costs.... Flip it back on ebay/CL at your desired end of life and repeat the process..


Let's break this down.
$25 gets you a 720p screen and a hard drive and 4gb of ram... ok well screw this.
$35 finally gets you 1080p... getting there...
$60 gets you a really impressive screen and an m7 and an SSD.

Ok cool. But at these price points, youre cutting it really close at just over first year of ownership vs just buying anything decent from the slickdeals.

If you're ghetto, or you are a small 0 funding startup that literally has no resources as a human being without a house or internet connection or laptop then like SURE..... ok.. spend $35 if you have no connections who would just lend you something. get you by for 2-4 months. It's a loss but youre coming up against opportunity cost..

But if you plan on being a business for more than a year this is just a waste. Buy a real device off of the slickdeals when they pop up like the continually available m5y10/m5y71s <$400 with 1080/1440p and more than 4gb of ram -.-
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Last edited by rawriorr September 20, 2016 at 11:33 PM
#10
3 year lease for a $550 laptop comes out to $900 total payment plus either the laptop comes back, they pay a payoff fee, or they continue the lease. Amazing I should get in the hardware leasing business.
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#11
I dunno, I think the three years of warranty and tech support adds some extra value that a lot of you are missing...
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#12
dell outlet offers refurbs w/3 year warranty frim home so do not see the poinymt of this at all.
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#13
Quote from murphworld View Post :
I dunno, I think the three years of warranty and tech support adds some extra value that a lot of you are missing...
I think you nailed it right there. You go to Dell.com and ProSupport/Plus is an expensive add-on. Forget about it if you have to factor in outsourcing IT support at what $40/hour and the headache of it all. I'll take the safe route for peace of mind, and I have a Microsoft Store near me. Me and my team can get a lot of help in store.
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#14
Honestly, I think we're all more tech savvy than your average SMB owner. The premise of the program is to purchase a good device, but never have to worry if something goes wrong. You could drop it, spill on it, have issues with OS, and Dell will replace your device with the AYB program. Looks like a good deal to the small business owner who wants to worry less about IT and more about their business.
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#15
Also, apparently there's a webinar Thursday to go over the program in more detail with Carol Roth from CNBC. Looks like they're giving away three of the packages. Here's the sign up linkhttp://www.microsoftstore.yourbra...IVE_091616.
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