What is Product-as-a-Service?
Product-as-a-service, PaaS, means the customer purchases the desired result instead of the equipment or product itself, and the system is run in a subscription-based business model. In this model, the customer does not own the product; rather they pay for the product and the services included in the bundle. They return the product once the subscription period is over and the product owner can sanitize, inspect, and repair the product, if needed, for another rental cycle.
A connected product-as-a-service involves the enterprise selling an integrated package that includes hardware, software, connectivity, maintenance, customer support, installation, and other value-adding services for a recurring fee.
The servitization of products and services is a fundamental change in mindset from selling products to providing solutions to customer needs and problems.
In this product-as-a-service business model, customers pay for the product's performance, usage, or outcome.