Cloud-based or Solution-as-a-Service applications and systems are on the rise as more companies embrace the flexibility and (in many cases) lower costs associated with these hosted systems. According to recent research, the Software-as-a-Service market globally is poised to achieve a CAGR of 21.2% through 2023.
But is Solution-as-a-Service a fit for manufacturing applications? Can this model apply to hardware as a well as software? If you are considering a switch to an as-a-Service/leased model for your industrial solutions, here are five reasons that Solutions-as-a-Service might be a good fit:
You get a total solution for one monthly fee. A leased solution fee includes everything: equipment and accessories, software and professional services, and maintenance and support. A hosted/leased model can reduce your need for costly capital expenditures, and even make it possible to support the solution with fewer staff.
Solution-as-a-Service is cost effective: Under this model, you can easily budget for the consistent monthly payment for each term. On-premises or owned equipment can break down or need to be replaced; companies often find that they have either over- or under-budgeted for their support needs. With a Solution-as-a-Service, you not only get a predictable payment, but you don’t have to worry about unexpected expenses down the road.
It’s easier to upgrade software and refresh hardware: The cost to rip and replace outdated equipment is usually high. New software versions can often result in companies having to purchase all new hardware to stay current. By switching to an as-a-Service model, you can remove that potentially large future investment from your budget, and avoid the disruption that can be caused when those solutions reach their end of life. In addition, companies can upgrade or refresh the software or hardware when it is convenient, and at a lower cost.
In the case of cloud-based software, the updates can often be made in the background, without any disruption to the existing deployment. Solutions-as-a-Service remove the burden of maintaining on-site servers and software, freeing up IT staff to work on more strategic initiatives and ensuring greater solution uptime.
It provides a hands-off approach to equipment management: Solutions-as-a-Service offers hardware flexibility without the risk of ownership. Hardware can be swapped out or upgraded as it becomes available, without high upfront purchasing costs. The solution provider manages the equipment lifecycle using their own asset management systems. These solutions make it easier to track and manage the hardware automatically, reducing the cost of lost, stolen or damaged devices.
Honeywell’s Circadia, for example, provides full asset management capabilities for the company’s Honeywell-as-a-Service (HaaS) customers. Users can track lifecycle information, view lease maturity information, and quickly access equipment data and generate reports to help optimize their asset fleets.
The as-a-Service model provides the safest, easiest way to stay current with technology and systems, with less disruption and cost.
Solutions-as-a-Service mitigates risk: By leasing the technology solution, you can remove the risk of book loss in the future. The Solution-as-a-Service model also removes the cost and risk of data destruction and equipment disposal, because the equipment lifecycle can be handled (per terms you spell out in the contract) in a safe and auditable fashion.
Using the Solution-as-a-Service model for your manufacturing applications can eliminate the expense and confusion associated with having multiple vendors and contracts, while reducing support costs, streamlining your budgeting process, and making it easier to keep your technology current.
