“PAY-PER-USE LIGHT” – Your first step towards as-a-service business models!

You want to know how the crisis impacts the Equipment Manufacturing Industries and how you can leave the downward spiral in your industry? Check it out in our previous article „Challenges for Equipment Manufacturers (OEMS) during the Covid-19 crisis … and a possible way out.“ Today we want to highlight again the four common methods of acquiring equipment […]

New challenges for Equipment suppliers who want to adopt Pay-Per-Use!

Challenge Nr. 1: Establishing Equipment-as-a-Service (EaaS) pricing / contracts One of the challenges in establishing a usage-based business model (such as PPU, EaaS) is the development of a sound pricing concept. Equipment providers need to have a closer look at the following topics:  1.1 New risks associated with EaaS models: By offering EaaS financing models, […]

The Sharing Economy inspires New Financing Methods for OEMs!

sharing economy

Trend No. 1: “EaaS allows companies to monetize a larger part of the value chain.” There are some specialized VARs (Value Added Resellers) especially in the IT industries who were successfully reselling OEM EaaS to end customers over the past years.  OEMs are increasingly starting to win back some of the market share from those […]

PAY-PER-USE will become a huge business!

In our prior articles we started to talk about the potential for PPU and Equipment-as-a-service (EaaS) in the various industries. Today we would like to put some numbers behind the coming developments and the potential that the markets offer. According to a recent study from IoT Analytics the market for EaaS business models was $21.6B […]

Pay-Per-Use is not a new concept!

In fact, the potential of the new business model was recognized decades ago. So long before the industrial Internet of things (IIOT) was invented. Initially, models were created that showed similar aspects of the known pay-per-use business model. But the idea was ahead of its time, due to the fact that the emergence of the […]

Adoption Drivers of PPU based business models

In the last article we talked about the benefits for equipment manufacturers (OEMs) of EaaS business and financing models.  Today we want to give you an overview about the most important drivers which will lead to increased adoption of EaaS and Pay-per-use business models. 1. Ease of measuring KPIs Equipment that immediately improves easy-to-measure customer […]

Why should OEMs offer “Equipment-as-a-Service”?

Last week we tried to give a short introduction why equipment operators should consider paying for usage instead of purchasing equipment. But there are a lot of advantages also for Original Equipment Manufacturers (OEMs) who offer a service based business model. These benefits combine both a new way to generate revenue and a front row […]

Are you already buying the milk, or is it still the whole cow?

Over the past few years several companies in different industries shifted the way of obtaining additional capacities to a much more flexible one. The emergence of the Industrial Internet of Things (IIoT) brought the tools Equipment manufacturers (OEMs) needed to develop and implement disruptive new business models like Equipment-as-a-service (EaaS) based on the data produced […]