Convertible Notes and Startup Funding
February 12, 2025
There are several cognitive biases that affect our ability to think clearly about financial investments. One such bias is called the hindsight bias. Over the years, the effect of hindsight bias on the value of investor portfolios has been significant. This is the reason that we will have a closer look at what this bias […]
Bankruptcy is a state in which firms are not able to meet their obligations to internal as well as external stakeholders. It is for this reason that bankruptcy prediction is of utmost importance. Stakeholders like employees, suppliers, customers, etc. could gain a lot if they had a method for predicting the likelihood of a company […]
Reserve requirements are one of the most important features of modern central banking. We hear about reserve requirements almost every day in the media. When central banks like the Fed change these requirements, it is said to have a huge impact on the markets. Liquidity worth billions of dollars is said to be either released […]
With the advent of technology, more and more people have started accepting digital payments. This means that corporations have to provide their customers the option to make payments using a wide variety of payment methods. Some of these payment methods are electronic whereas others are not. Commercial banks have identified the possibility of providing good […]
Most of the players in the online as well as offline retail industry have a clearly defined retail policy. It is considered to be an important part of business for most players in the retail industry. A lot of retailers don’t give much thought while creating this policy and such policies are often created based […]
The Product as a Service (PaaS) business model is poised to change the business world in a big way. There are many traditional industries that are being disrupted by this model. Start-ups, as well as established corporations, are all taking steps to adopt this model. Many industries such as automobiles and electronics are likely to be fundamentally transformed by this business model. This is the reason that venture capitalists are looking to fund more companies that are built upon the Product as a Service (PaaS) business model.
Hence, it is important to understand the advantages of this model in more detail. In this article, we have listed the most important advantages of the Product as a Service (PaaS) business model.
The Product as a Service (PaaS) business model is highly popular because of the advantage it offers to both parties. The details of the advantages have been mentioned below:
Advances in the “internet of things (IoT)” are making it possible to collect data from various kinds of machines and then analyze such data. Hence, companies are in a position to move from preventive maintenance to predictive maintenance. This means that companies can maintain vehicles and other equipment better than the end-users. They can use these economies of scale to make the model more affordable to the end-users without actually cutting down on their profitability.
With the advent of the Product as a Service (PaaS) business model, there is no need to borrow money and take on the liability. Instead of making monthly payments to the finance company, they can make the same payments to the manufacturer, and that too without any commitments or obligations! They can stop making the payment at a short notice and they will not owe the manufacturer any money since they were paying subscription fees and not loan installments.
Given the long list of advantages, it should come as no surprise that a lot of start-up companies are being built around this concept. Some of these companies have already gone on to become unicorns.
Your email address will not be published. Required fields are marked *