One of the recurring themes we get asked about currently in different contexts is the…
RaaS is a cloud-based business model in which companies lease or rent robots on a subscription basis, paying for their usage and maintenance, rather than buying and owning the robots outright.
RaaS allows businesses to access the latest robotic technology without the high upfront costs and ongoing maintenance expenses associated with purchasing and maintaining robots. Instead, the provider takes care of software updates, data, repairs, and technical support, while the customer focuses on their core business operations.
RaaS can be beneficial for a wide range of industries, including manufacturing, healthcare, hospitality, and logistics. For example, in manufacturing, robots can perform repetitive tasks with greater precision and efficiency than humans, while in healthcare, robots can assist with patient care and physical therapy.
The RaaS provider typically offers a range of robots to choose from, each with different capabilities and features to suit specific business needs. Customers can choose to lease or rent robots for a specified period, such as a few months or several years, and then either renew the subscription or return the robot. The provider can then repurpose or re-lease the Robots.
There are several benefits to robotic manufacturers offering RaaS:
- Increased Revenue: RaaS allows robotic manufacturers to generate recurring revenue streams through subscription-based models, rather than relying solely on one-time sales. This provides more predictable and consistent revenue streams.
- Access to New Markets: Offering RaaS enables robotic manufacturers to expand into new markets and reach customers who may not be able to afford the upfront costs associated with purchasing robots.
- Improved Customer Relationships: With RaaS, manufacturers can build stronger relationships with their customers by providing ongoing support and maintenance services, which can improve customer satisfaction and loyalty.
- Faster Innovation: RaaS allows manufacturers to receive feedback from customers on how their robots are being used in real-world situations. This feedback can be used to develop new features and functionalities, leading to faster innovation and product improvement.
- Reduced Risk: Manufacturers can reduce their risk by offering RaaS, as they can retain ownership of the robots and ensure that they are maintained and updated properly. This also helps to protect against issues such as equipment obsolescence, which can be a risk for customers who purchase robots outright.
What about the benefits of RaaS to Customers ?
- Lower Upfront Costs: Instead of having to make a large upfront investment in purchasing robots, customers can subscribe to RaaS and pay only for what they use. This can lower the barrier to entry for businesses that want to incorporate robotics into their operations.
- Access to the Latest Technology: With RaaS, customers can access the latest robotics technology without having to worry about obsolescence or keeping up with the latest hardware and software updates. This can help them stay competitive and improve their productivity.
- Scalability and Flexibility: RaaS allows customers to scale up or down their usage of robots based on their changing needs. This can be particularly beneficial for businesses that experience seasonal or fluctuating demand (or shut due to pandemics!)
- Reduced Maintenance and support costs: RaaS providers are responsible for maintaining and repairing the robots, as well as providing technical support. This can help customers save money and free up their internal resources for other tasks.
- Improve Efficiency and Productivity; Robots can perform tasks more quickly and accurately than humans, which can help businesses improve their efficiency and productivity. RaaS can provide access to this technology without the need for significant upfront investment.
In summary, RaaS can provide OEM’s and customers with a range of benefits, including increased revenues, new markets, closer customer relationships, reducing risk, lower upfront costs, access to latest technology, scalability, reduced support costs and improved efficiency. Invigors can help Robotics and other manufacturers on the RaaS journey, from value proposition, deal structuring, terms and conditions through to funding. Drop me an email for a free consultation discussion on the topic (Nick.Feasey@Invigors.com)
Don’t take our word for it, here is the voice of the customer:
“We had started with one of the largest financial advisory services but were unhappy with the lack of progress and focus. We were referred to Invigors and, having met with the senior team, it was immediately apparent that they were experienced, engaged and focused. We signed with the Invigors team and they injected energy and focus into our project. Regular updates, a strong understanding of the needs of our business and, importantly, a successful outcome. We’ll be using them again. “
General Manager, Softbank Robotics EMEA
*Acknowledgement: CHATGPT wrote most of this article, it is my first time using it – and I found it amazing! However, you will note this article does not use my usual chatty diction!