Free space as a service: Shifting investments from CapEx to OpEx

How automation and digitalisation projects pay off better

Digitalisation does not come for free and it is a lot of work. This makes it all the more important to focus your financial and human resources on the essentials. Buying and installing expensive hardware is certainly not one of them.

If you screw your capital into the machine, you won’t be able to develop new business models; if your employees spend their time working with technology, they won’t be able to refine products and services for you. There is therefore a lot to be said in favour of “as-a-Service” models (XaaS), in which providers make their devices, systems or services available as a service that can be billed on a usage basis. This often involves virtual hardware that is not even installed on site. XaaS also thrives on omission and therefore differs from leasing a company car, for example, where the concept would have less desirable effects.

With PLC as a Service (PLCaaS), logiccloud is the first company to move intelligence from the physical industrial control system to the cloud. For the user, this shifts the one-off capital expenditure for hardware and assembly (Capital Expenditures/CapEx) to ongoing operating costs (Operational Expenditures/OpEx). Stretching the expenditure relieves the strain on liquidity, while the concept also reduces the financial risk and is scalable in all directions as required. Larger digitalisation or retrofit projects in particular – after all, a large number of control systems work in parallel in the smart factory and smart building – are thus easier to manage and control.

Back to the keyword “omit”: logiccloud translates the complex control processes into microservices that can be highly and flexibly customised to the respective requirements. Physical PLCs, on the other hand, cannot be easily “rebuilt” and therefore always come with capabilities that are never needed but drive up costs. The SUV for the journey to nursery, the oversized PLC on the machine? Times are changing, and this is not only, but also, a financial issue.

SaaS is standard in the software sector. SPSaaS follows the same pattern: the customer receives a solution at predictable and transparent rates that is always state of the art and can grow with the application and the company. There are no costs for unnecessary functionalities and the capital not tied up in hardware can be invested elsewhere.

Our conclusion for today

Thanks to its financing concept and variable scalability, SPSaaS is ideal for anyone who wants to retain financial and personnel freedom for larger projects – and for users who want to gradually approach digitalisation.

21. February 2023


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