EaaS 101: Enables control, equipment assets turn into services

Sep 29, 2014 12:00:00 AM


Equipment-as-a-service or EaaS is rapidly moving from a specialized notion pioneered by the providers of medical and other specialized devices to general adoption. Thanks to the ease of connecting all sorts of equipment and devices in the internet of things (IoT), EaaS is also becoming more feasible and affordable. Today, EaaS is poised to make rapid inroads into complex building systems, such as high-rise elevators or HVAC, as well as manufacturing environments.

When you look at equipment and machinery around you, do you see static assets that need repair and servicing from time to time? Or do you see services whose main value is to provide what people and companies want to accomplish, and equipment and maintenance are both a part of that? In many companies, the view of equipment and services is rapidly and dramatically changing.

The makers of high-end, business-critical equipment used, for instance, in manufacturing, oil and gas exploration, mining, and construction, have long sold equipment together with service contracts. For the customers using these machines, an interruption to their functioning would seriously compromise their ability to deliver to their customer commitments, so they pay for scheduled and emergency maintenance and repair in addition to investing in the purchase of the equipment.

EaaS takes a step beyond that with more effective operations and a simpler financial model. Companies’ primary interest is the ability, for example, to manufacture parts for jet engines. Instead of making a large investment in machinery, they pay the vendor a fee for delivering that ability at a certain service level. Equipment and equipment maintenance are essential components within that service. The vendor generates recurring revenue and may be able to build a larger business from services, parts, and materials.

To make this work, you need to be able to rely on your vendor’s uncompromised uptime commitment. The vendor has to perform regular preventive maintenance, and also needs to be aware of materials and parts that are not performing to expectations and are at risk for failure, so they can be replaced or repaired. That, in turn, requires timely, accurate intel from and about the critical equipment assets. Connected sensors within the internet of things can gather and transmit detailed data that tell the service provider about the performance, material conditions, operational details, and location of the equipment, enabling proactive maintenance. If EaaS is implemented with the proper business intelligence, well-maintained equipment may be productive much longer and failures will be rare. EaaS providers will also be able to gather data from customer sites that help them improve their designs to make machinery more robust and better-performing. Equipment data will also make it easier to assess the costs and operational impact to decide how long machinery should be maintained and repaired, and when it’s better to replace it. Eventually, to the benefit of both EaaS vendors and their clients, maintenance and repair costs can go down.

To-Increase customers are working toward EaaS at their own pace and are looking to us to support both Eaas and the internet of things. For the moment, it looks like the best fit for EaaS is with the large, industrial manufacturers and the companies that so far have provided them with equipment. We have already seen quite a few customers take advantage of the internet of things to speed design and manufacturing cycles. Adopting Eaas as a vendor or consumer of equipment services is a logical next step for many of them.

If you see a need or have an interest in the new EaaS model, I’d love to hear from you. Get in touch with me or simply contact To-Increase.

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About Author
Luciano Cunha

Luciano Cunha

Chief Executive Officer (CEO) For Luciano, being responsible for To-Increase’s global sales and marketing means unleashing the company’s insight, innovation, and creativity to tell our story and help customers achieve their goals. On the road much of the time, he travels the world to meet with customers, understand their challenges and ambitions, and find the most effective ways to help them advance. Luciano develops and mentors our marketing and sales team, and creates strategies to help the To-Increase worldwide partner channel thrive and grow.
Making Customer Needs the Main Business Driver Luciano and his team have daily conversations with the To-Increase research and development organization to bring customers’ requirements and concerns into the road maps and design of our solutions. Luciano brings his insight to the marketing group to make sure the company’s communications resonate with customers and speak directly to their experience.
“I’m awed by customers’ innovative spirit in taking business management technology past its limits and by their generosity in letting us participate and empower them. I hope to transform our organization to become even more customer-centric than we are today. That means making more resources available to spend productive time with both our customers and partners, so we can ensure that we place into customer businesses effective solutions that fit the evolutionary stage of their operation and the way their people and processes work.”
Empowering a Global Channel
Because To-Increase only sells through partners, readying the channel to be successful in helping customers is a business-critical effort. Luciano aims to meet partners where their interests are. Partners who consider the relationship with To-Increase strategic can rely on our industry specialists to work with them as they plan their growth and serve customers. If partners prefer a less collaborative relationship, they still receive the rich To-Increase expertise and resources to ensure they win the business, perform a successful deployment, and retain a satisfied customer. In working with partners and their customers, Luciano brings to bear his experience of many years of creating successful, customer-focused business development and marketing strategies in many of the world’s countries and regions.
Enabling Customer Success in Challenging Business Environments
Looking into the near future, Luciano expects that customers will continue to expect To-Increase to help them make business sense of unfolding trends and technologies. For example, the internet of things (IoT) will thoroughly revolutionize manufacturing, engineering, and supply chains. Big data will be meaningful and valuable when decision-makers can use technology solutions to transform it into actionable business intelligence that supports key roles and business processes. Mobility will help companies become digital enterprises and move business processes forward from any location, at any time. Team To-Increase harnesses innovation to help customers translate the promise of these technologies into business results.
Before his current role, Luciano for several years was one of To-Increase’s global industry directors, responsible for our industry solutions. His experience also spans more than 17 years in IT and manufacturing management roles. These positions took him into various areas at IBM Brazil, serving as product manager for several software development companies, and included working in senior management at a manufacturing organization in the U.S.
Luciano is married with two young children. Away from work, he enjoys participating in a soccer class together with his son and daughter as well as taking relaxing walks in natural environments with his family.

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