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What business model will be employed in the next 10 years for B2B OEMs in the generation of revenues?
Currently B2B OEMs continue to embrace their legacy business model of build-and-sell.
There are several business models evolving that can change how OEMs will generate predictable recurring revenues in the future:
1-Product-as-a-Service [PaaS] agreement that includes an embedded lease, in which recurring revenues are generated by a fixed fee per output (i.e. $1/mile travelled) or outcome (i.e. level of machine availability) .
2-Aftermarket service agreement with a fixed fee per output or outcome.
3-Subscription for a product or service in which delivery is on a defined periodic basis
4-Subscription for a service in which access is for a defined periodic basis
Note that cloud-based software products are in effect a subscription service that is a combination of shared server and storage hardware, various software products with outcome assurances of 99.95 update.
So, what are your thoughts of this trend
48 months ago
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