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We write often about the benefits of Robots-as-a-Service (RaaS) here at The Robot Report, highlighting companies like Locus Robotics, who are building a strong business around RaaS.
For automation buyers, RaaS changes the entire purchase process from a capital expenditure (CAPEX) decision, into an operating expense (OPEX) decision. This shortens the decision process (or the sales process for the robot manufacturer) and reduces the risk for the automation client. A RaaS contract guarantees the performance of the solution and enables the client to quickly scale up with additional robots (if the solution is successful) or easily return the solution if it is unsuccessful.
Either way, RaaS is changing the vendor/customer dynamic and reducing barriers to entry for new robotic solutions.
When there is no capital expenditure required, the purchase decision process can often be made quicker, and with lowers levels of signing authority on the client side.
However, implementation of a RaaS business model is often difficult for young robotic startups who have no experience in service delivery. A RaaS-based business model requires a different organizational structure from a classic OEM hardware company business model, and it also requires a lot more capital to build out a fleet of robots. The result is that RaaS company cofounders must find patient and knowledgeable investors, who understand and believe in the RaaS business model.
Instant service organization
There is an alternative to the problem of scaling up the service organization infrastructure and the capital to finance the operational fleet.
ARO announces a RaaS partnership program designed to solve organizational issues and lower customers’ barriers to adoption. ARO can extend the capital to the robotics OEM through a new program. The ARO business model is one in which, it owns the fleet of robots (assets), and essentially preserves all the benefits of a manufacturer-backed RaaS go-to market.
ARO is operating as a robotics service provider (RSP) for any robotics OEM who desires to sell their solutions using the RaaS business model but wants to remain a hardware OEM. ARO’s model includes ARO’s traditional robotic implementation and managed robot services bundled into the price for a true robot-as-a-service model.
The company covers extended warranties, device upgrades, and customer success programs, so customers can be assured that their robots will operate efficiently and effectively while always being supported. ARO provides a 24/7 services center and a remote robotics operations center, as well as a team of field operations engineers who can travel to customer facilities for installs, maintenance and emergency repairs. The company has been around since 1990.
Manufacturers can enjoy capital preservation, device up-sales, and the full weight of ARO’s operational support to ensure their customers have the best experience with their robots.
“We’re incredibly excited to announce our new RaaS program,” says Jeff Pittelkow, Managing Director of Robotics for ARO. “Our partners are always looking to preserve capital, increase sales, and increase customer success and device utilization. This program provides a complete package in making all of those things happen.”
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