Freedom as a Service: Shifting investments from CapEx to OpEx

How automation and digitisation projects pay off better

Digitisation doesn’t come for free and it takes a lot of work. This makes it all the more important to concentrate your financial and human resources on the essential things. Buying and installing expensive hardware is certainly not one of them.

If you screw your capital into the machine, you will not be able to build new business models; if your employees spend their time with the technology, they will not be able to fine-tune products and offers for you.  So there is a lot to be said for “as-a-service” models (XaaS), in which providers make their devices, systems or services available as a service that can be billed on a per-use basis. This often involves virtual hardware that is not even installed on site. XaaS also thrives on omission and thus differs, for example, from leasing the company car, where the concept would have less desirable effects.

logiccloud is the first company to shift intelligence from the physical industrial controller to the cloud with PLC as a Service (Control as a Service). This shifts the one-off capital expenditure for hardware and assembly (Capital Expenditures/CapEx) to the ongoing operating costs (Operational Expenditures/OpEx) for the user. Stretching the expenses relieves the liquidity; moreover, the concept reduces the financial risk and is scalable in all directions according to demand. In particular, larger digitisation or retrofit projects – after all, a large number of control systems are working in parallel in the smart factory and the smart building – are easier to manage and control.

Back to the keyword “omission”: logiccloud translates the complex control processes into microservices that can be highly and flexibly adapted to the respective need. 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 way to the nursery, the oversized PLC at the machine? Times are changing, and this is not only, but also, a financial question.

In the software sector, SaaS is standard. SPSaaS follows the same pattern: the customer receives a solution at plannable 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 the financing concept and variable scalability, CaaS is ideal for anyone who wants to retain financial and personnel freedom for larger projects – and for users who want to approach digitisation step by step.

Posted 28.02.2023

Michael Böhrer

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