The Business of RaaS: Deployment Acquisition Cost

It’s relatively easy for a customer to try a RaaS offering because they don’t need to commit to significant capital expenditures. They treat the robots as an operating expense.

Hypothetically (and notwithstanding hardware switching costs), let’s say John Deere’s business model relied less on upfront revenue from the sale of a tractor and more on how many acres their equipment covered. Their authorized service and dealer model — not to mention their product design — would look substantially different.