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Equipment-as-a-Service (EaaS)

Jan. 4, 2022
OEM Guidebook to a Profitable Service-Based Business Model

Original equipment manufacturers (OEMs) must find ways to boost sales margins in an increasingly competitive market. Servitization, or “Equipment-as-a-Service” (EaaS), can help OEMs overcome many challenges they face in today’s crowded market. EaaS refers to industries or OEMs that use their products to sell an “outcome as a service” rather than a single sale of that product. This type of service-based model is an opportunity for manufacturers to create new sources of revenue and profit and is generally more stable than the sale of products, which tend to be more sensitive to economic cycles.

This type of service-based model provides a recurring revenue stream and a closer customer relationship, which offers additional opportunities to upsell, cross-sell, and other value-added services. For customers, advantages include payments based on usage, ongoing service, and lower capital investment.

Check out this guidebook, which outlines the benefits of EaaS, and the steps OEMs can take to make servitization a reality. 

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