The Hidden Costs of Mobile Technology: Why Device as a Service Is the Future

16/02/2026
Stefan Schneider
Stefan Schneider, Sales Director Retail

In the warehouse, it happens in the blink of an eye: a wrong step, a mobile device falls off the forklift, and suddenly operations grind to a halt. What initially seems like a few hundred euros in damages often turns out to be a far costlier problem. The true costs of mobile technology are like an iceberg — what we see is only a fraction of what lies beneath the surface.

This article explains why traditional mobile device procurement is reaching its limits and how Device as a Service, combined with rugged hardware, provides a sustainable and cost-efficient solution.

 

1. The Iceberg of Hidden Costs

At our clients, we repeatedly observe the same pattern: about 70% of the actual costs arise after purchase. IT support, configuration, replacements, and security updates accumulate quickly.

If a forklift operator waits an hour for a replacement device, the company doesn’t just lose €500 for the damaged mobile device. The real loss lies in the thousands of euros in revenue missed along the supply chain during that downtime.

Traditional procurement models systematically underestimate these follow-up costs. The focus is on the purchase price, while operational costs only become visible later — often when it’s too late to act strategically.

 

2. Rugged Computing: When Durability Becomes Essential

The answer to fragile consumer devices is rugged computing. Devices with IP68 certification, shockproof construction, and replaceable batteries are designed for harsh industrial environments. They deliver what standard devices can only promise.

Even the best hardware, however, only delivers value if it is integrated smoothly into the IT environment. A rugged device without stable Wi-Fi or with manually installed security updates creates new problems instead of solving existing ones. This demonstrates that technology is only as effective as the management system supporting it.

 

3. Device as a Service: From Product Purchase to Lifecycle Management

Device as a Service fundamentally changes the approach. Companies no longer buy individual devices — they buy availability and service. At Damovo, we call this lifecycle management, which goes far beyond mere hardware provisioning.

The process begins with procurement and continues with staging. Each device is fully pre-configured before reaching the company. Zero-touch deployment allows employees to unbox, power on, and start working productively immediately, without manual IT intervention.

During the operational phase, Damovo handles ticket management, pushes applications, and ensures a secure operating system.

At the end of the lifecycle, we manage device returns, securely erase all data, and guarantee compliance-compliant disposal. This end-to-end responsibility ensures security and significantly relieves the IT organization.

 

4. Proactive Management: Solving Problems Before They Occur

A central advantage of Device as a Service is proactive management. Our managed services continuously monitor the condition of devices. AI-powered analytics detect issues — such as a declining battery — before the user notices, allowing replacements before failures occur.

This is the key difference between having a mobile device and enabling true mobile productivity. For CIOs, this means higher operational stability, fewer support tickets, and measurably increased productivity.

 

5. Financial Predictability: From Investment Peaks to Fixed Rates

Device as a Service also offers financial benefits. Instead of making large investments every few years, companies pay a monthly, predictable rate, protecting cash flow and enabling precise budget planning.

Scalability is another advantage. For example, during peak seasons like Christmas, companies can increase the number of devices and reduce them afterward. They only pay for what they actually use — a flexibility that traditional purchase models cannot achieve.

Combined with long-lasting rugged hardware, often used for five years or more, this results in an optimized total cost of ownership. Longer device lifespans reduce the monthly rate while ruggedness simultaneously lowers downtime costs.

 

6. The Power of Combining Rugged Hardware and Managed Services

The greatest impact comes from pairing robust hardware with comprehensive service management. Rugged computing provides physical resilience, while Device as a Service ensures operational excellence.

A tough exterior and a worry-free core make this combination particularly attractive in terms of total cost of ownership. Companies gain not only devices but a fully managed system that ensures availability, minimizes risks, and provides financial flexibility.

 

Conclusion: From Procurement to Strategic Partnership

Device as a Service is far more than an alternative financing model. It is a strategic approach that rethinks the entire mobile technology value chain. From initial configuration through proactive maintenance to compliance-compliant disposal, every step is professionally managed.

For executives, this represents a clear shift in perspective: from short-term cost optimization at purchase to a long-term partnership focused on availability, security, and operational excellence.

The question is no longer whether companies need mobile devices — it is how devices are managed to enable true business agility without hidden costs, operational surprises, or uncertainty. Technology must work for the company, not the other way around.