{"id":7230,"date":"2022-03-09T23:20:26","date_gmt":"2022-03-10T06:20:26","guid":{"rendered":"https:\/\/limblecmms.com\/?p=7230"},"modified":"2025-05-30T13:05:35","modified_gmt":"2025-05-30T19:05:35","slug":"equipment-as-service","status":"publish","type":"post","link":"https:\/\/limblecmms.com\/blog\/equipment-as-service\/","title":{"rendered":"What is Equipment as a Service (EAAS)?"},"content":{"rendered":"

[vc_row kd_background_image_position=”vc_row-bg-position-top”][vc_column][vc_column_text]Industrial equipment is getting more complex, specialized, and expensive to acquire and maintain. Even <\/span>routine maintenance<\/span><\/a> can prove to be beyond the capabilities of an in-house team. For many firms, buying modern machines has become a high-risk endeavor.<\/span><\/span><\/p>\n

Driven by these pressures, a new paradigm has gained traction in modern manufacturing \u2013 <\/span>Equipment as a Service<\/b> or<\/span> EaaS<\/b> for short.\u00a0<\/span><\/p>\n

What does it mean for OEMs and their potential buyers? Is it an option worth considering for your business? What are its pros and cons?\u00a0<\/span><\/p>\n

Let us find out together.<\/span><\/p>\n

What is Equipment as a Service?<\/span><\/h2>\n

In the world of widespread digitization, the “as a service” model is extremely popular. You have companies working under various business models like Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).\u00a0<\/span><\/p>\n

The basic idea across all these models is the same \u2013 instead of selling a product to the consumer, vendors will provide a package of ongoing services in exchange for recurring fees\/subscriptions. This would include customer support, ongoing maintenance, and constant updates and tweaks.\u00a0<\/span><\/p>\n

This allows you to reduce CapEx and focus on your core business.<\/span>
\n<\/span><\/p>\n

Limble CMMS<\/span><\/a> is a perfect example of a SaaS. A centralized cloud-based maintenance platform you can access with any mobile device. Everything is taken care of at the vendor\u2019s side. Your only job is to remember your login details and pay your monthly\/yearly subscription.\u00a0\u00a0<\/span><\/p><\/blockquote>\n

Equipment as a Service is the same model brought over to the realm of industrial equipment. It is also called by other names such as Machine-as-a-Service (MaaS), or Pay-per-use (PPU). This model is directly at odds with the \u201cclassical\u201d paradigm in the industrial equipment market.\u00a0<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row content_placement=”middle” kd_background_image_position=”vc_row-bg-position-bottom” kd_top_separator_style=”skew-left” kd_top_separator_height=”separator-height-small” kd_bottom_separator_style=”skew-left” kd_bottom_separator_height=”separator-height-small” kd_top_separator=”true” kd_bottom_separator=”true” css=”.vc_custom_1682969636891{margin-bottom: 40px !important;padding-top: 120px !important;padding-right: 40px !important;padding-bottom: 50px !important;padding-left: 40px !important;background: #dde4e8 url(https:\/\/limblecmms.com\/wp-content\/uploads\/cta-laired-hex-4.webp?id=9077) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;border-radius: 0px !important;}” css_tablet_landscape=”.vc_custom_1682969636891{padding-bottom: 80px !important;}” css_tablet_portrait=”.vc_custom_1682969636891{padding-bottom: 80px !important;}” css_mobile=”.vc_custom_1682969636892{padding-bottom: 80px !important;}”][vc_column][vc_row_inner kd_background_image_position=”vc_row-bg-position-top”][vc_column_inner]

The Essential Guide to CMMS<\/h2>
Download this helpful guide to everything a CMMS has to offer.<\/h6><\/header>[\/vc_column_inner][\/vc_row_inner][vc_row_inner content_placement=”top” kd_background_image_position=”vc_row-bg-position-top”][vc_column_inner width=”1\/2″ css=”.vc_custom_1631866454223{padding-right: 50px !important;padding-left: 0px !important;}” offset=”vc_col-lg-6 vc_col-md-12 vc_col-xs-12″ css_tablet_landscape=”.vc_custom_1631866454223{padding-right: 0px !important;}” css_tablet_portrait=”.vc_custom_1631866454223{padding-right: 0px !important;}” css_mobile=”.vc_custom_1631866454224{padding-right: 15px !important;}”][vc_raw_html]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[\/vc_raw_html][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_single_image source=”external_link” alignment=”center” css_animation=”fadeIn” custom_src=”https:\/\/3975608.fs1.hubspotusercontent-na1.net\/hubfs\/3975608\/Content%20Downloads\/CMMS%20Guide%20mockup.png”][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row kd_background_image_position=”vc_row-bg-position-top”][vc_column][vc_column_text]<\/p>\n

Equipment as a Service business model vs standard model\u00a0<\/span><\/h2>\n

In the traditional system, <\/span>original equipment manufacturers<\/span><\/a> (OEMs) design and sell machines to their customers – usually a manufacturing company. There is an up-front payment for the transaction and the ownership and control of the equipment is transferred to you, the buyer.\u00a0<\/span><\/p>\n

The OEM provides a limited form of customer support and onboarding assistance, as well as <\/span>advanced troubleshooting<\/span><\/a> and warranty services. However, as the owner of the equipment, it is largely your responsibility to handle spare parts, <\/span>maintenance, and repairs<\/span><\/a>.\u00a0<\/span><\/p>\n

In contrast, in the EaaS model, your firm <\/span>does not gain full ownership or control over the equipment<\/b>. The vendor\u2019s EaaS offering will usually place strict limitations on what you can and cannot do to the equipment by way of alterations, modifications, etc.\u00a0<\/span><\/p>\n

<\/span>The role of the EaaS vendor is also significantly expanded when compared to the classical model. Instead of being just a seller, they have to provide other services which can include maintenance, repairs, software\/hardware updates, and other on-site or field services – as well as customer satisfaction.<\/span><\/p>\n

Equipment as a Service is industrial manufacturing\u2019s take on the subscription or outsourcing economy that has become widespread in the modern era. <\/span>With the increasing costs of owning and maintaining complex equipment, renting it begins to make sound business sense<\/b>.\u00a0\u00a0<\/span><\/p>\n

A brief look at the history and evolution of EaaS<\/span><\/h2>\n

Equipment as a Service is not a novel concept. Its origins can be traced back to the early days of the airline industry in the 1960s. The equipment in focus was the jet engine \u2013 and both the buyers and OEMs had problems with the classical model of equipment sales.\u00a0<\/span><\/p>\n

For the airlines, engine maintenance and repair\/replacement costs were a huge drain on their resources. The vendors were selling a product with a long life cycle – which meant long intervals between sales.\u00a0<\/span><\/p>\n

<\/span>In this context, Rolls Royce introduced <\/span>the \u201cpower-by-hour\u201d model<\/span><\/a>. It was an \u201cEngine as a Service\u201d model, where the airlines would pay an hourly subscription for the flight time. In exchange, Rolls Royce would handle all aspects of maintenance and repairs.\u00a0<\/span><\/p>\n

The airlines were now free to focus on their core business of carrying passengers and cargo, while Rolls Royce unlocked a new recurring revenue stream. They also benefited greatly in future R&D from the additional experience and knowledge gained from regular engine maintenance and follow-ups.\u00a0<\/span><\/p>\n

The Impact of IoT and Industry 4.0 on the spread of the EaaS model<\/span><\/h2>\n

A revolutionary aspect of the power-by-hour model was the guarantee of productivity. However, there is a reason why this business model didn\u2019t catch on much earlier. You see, airplane engines are a specific case study: it is fairly easy for an OEM and the airlines to track flight hours and achieve preset targets. In an industrial facility with complex production chains, this was not possible.\u00a0<\/span><\/p>\n

You simply did not have the 360-degree visibility over the production process to capture relevant performance data. This meant that buying any expensive new equipment represented a gamble to some extent \u2013 there was always a risk of it failing to deliver the expected results.<\/span><\/p>\n

<\/span>This changes with the rise of the Internet of Things and Industry 4.0. Firms now have ways to accurately capture a multitude of Key Performance Indicators. Using internet connectivity, smart sensors, and IIoT in general, combined with a modern <\/span>Computerized Maintenance Management System (CMMS)<\/span><\/a>, manufacturers and OEMs can both keep track of equipment efficiency and productivity – in real-time.\u00a0<\/span><\/p>\n

This development has drastically improved the viability of EaaS in the industrial space. It equips OEMs with the confidence to include productivity parameters into service contracts. The data also reduces the element of risk involved, making it easier for CFOs to make a case for switching to EaaS.\u00a0<\/span><\/p>\n

Pros and cons of the Equipment as a Service model<\/span><\/h2>\n

In the airline industry, the adoption of power-by-hour was a mutually beneficial arrangement for both OEMs and their clients. The same continues to be the case in modern iterations of EaaS, but it is not all smooth sailing.\u00a0<\/span><\/p>\n

Switching to the new model does come with some not-insignificant challenges for OEMs and buyers alike<\/b>.<\/span><\/p>\n

\"Pros<\/p>\n

Pros of EaaS for OEMs<\/span><\/h3>\n