Found in Robotics News & Content, with a score of 13.89
June 23, 2020
…a project by moving the cost from capital expenditure (capex) to operational expenditure (opex) budgets and allows for almost instant return on investment (ROI). For companies prioritizing innovation, RaaS represents a lower-risk option and a far easier implementation process, said ForwardX. “The opex versus capex tradeoff is now relatively common amongst RaaS providers, but the market now expects more than a simple financial twist,” declared Remy Glaisner, research director at IDC and lead for its Worldwide Robotics and Drones Strategies practice. “RaaS is primarily a transaction-based model for which each ‘transaction’ should reflect the creation of tangible business value for…
Found in Robotics News & Content, with a score of 13.07
December 05, 2021
…operational goals. Instead of traditional capital equipment expenses, or capex, RaaS provides a monthly service platform as an alternative financing option. It provides operational value without the monetary burden of a large equipment expense at the initial phase of integration. Hit was able to deploy the personalized robots within 60 days, and it continues to package tens of thousands of items daily at peak operation. During the first two months of operation, more than 200,000 products were packaged using the new robotic workcells. To date, over 1 million items have been packaged. By investing in automation, Hit has remained competitively…
Found in Robotics News & Content, with a score of 12.91
November 28, 2022
…options—from full RaaS to hardware and software, or partly capex [capital expenditures] and software as a service [SaaS]. These models are more attractive to customers because of a more reasonable service fee. Or, you could have more capex or opex [operating expenses], which gives us and customers some flexibility. Since Ottobot 2.0 launched in August, we've had 10 to 12 new customers, so there are more learnings to go on which is better for each. People love RaaS, but customers are also realizing they want the “stickiness” of a service model but want to get rid of some capex right…
Found in Robotics News & Content, with a score of 11.69
August 01, 2021
…business model in the robotics space is a purely CapEx play in which the customer needs to pay hundreds of thousands to millions of dollars upfront for robots. New incumbents are departing from this CapEx model and offering a robots-as-a-service (RaaS) business model. It is a pay-as-you-go (OpEx) plan, which allows customers to fund their automation needs with zero upfront capital commitment. A “$0 down with zero risk” value proposition is extremely attractive, not only for SMBs that are cash strapped but also for larger companies that want to take on more risks. The RaaS model is gaining more momentum…
Found in Robotics News & Content, with a score of 11.39
April 04, 2023
…automation as a strategic long-term investment and competitive differentiator. Capex vs. opex models: Dated capital expenditure models are delaying rapid adoption of automation at scale. Proven value: New technologies have to do a better job at proving value in environments with more financial discipline and to compete with other types of tech investments. Respondents were not interested in “science projects.” Source: Vecna Robotics When it comes to adopting automation at scale, the barriers remain spread. Cost and ROI remained the top barriers (44%) but was followed closely by training/change management (43%). Implementation complexity (39%), integration challenge (38%), and operational fit…
Found in Robotics News & Content, with a score of 10.65
January 09, 2023
…Intelligent Machines Inc. offer a robotics-as-a-service (RaaS) business model, which provides world-class automation packaged with all-inclusive service at zero CapEx cost. This subscription-based model gives customers the resources to deploy their own full-stack robots. Your factory can be automated and increase productivity and efficiency in record time. These workcells can eliminate financial risks and provide service with a dedicated 24/7 support system, provisioning, and equipment maintenance.
Found in Robotics News & Content, with a score of 10.57
March 16, 2023
…Comparing traditional business models works for established businesses, like capex [capital expenditures] and automotive manufacturers. But what about bleeding-edge technologies? It's all about certainty. Customers will pay money when they're very confident a product or service will work out and that the company has a track record of deploying on a large scale. Common objections to automation include: “It's too bleeding-edge.” “I don't want to be a guinea pig.” “I prefer gross margins.” “There are not enough referrals. We want more proof points.” “We're not sure we can meet KPIs [key performance indicators].” “The provider has existential risks.” In addition,…
Found in Robotics News & Content, with a score of 10.42
February 16, 2023
…automation going forward.” Only time will tell, but there do appear to be several new angles on the established capex model that make this worth considering.
Found in Robotics News & Content, with a score of 10.33
July 26, 2021
…said the report. RaaS offers to reduce capital expenditures (capex) on outright purchases of equipment by transferring service requirements to third-party providers as operational expenses (opex). “I think that there are a select few, probably including Walmart that will go down the capex path. They have all of their own software and capabilities in-house,” said an Attabotics staffer. “But, there's a lot that goes into e-grocery. Even the large companies need a turnkey solution if they want to get to market quickly with a profitable e-grocery business with the right SKU assortment, delivery time, the right mix of fresh and…
Found in Robotics News & Content, with a score of 10.13
October 04, 2022
…own orders.” Not only does this reduce capital expenditures (capex) and enable fleets to scale between peak and off-peak periods, but RaaS also enables inVia to remotely troubleshoot, said Elazary. “In a deployment we did with another customer, a robot escaped from one zone into another—from fulfillment to kitting,” he recalled. “We take care of issues before customers even notice them so they see the system as flawless.” “3PLs have thin margins and three-year contracts with retailers—how does capex work over 10 years?” asked Moore. “Most of our newest customers have been 3PLs.” WMS and data help scale fulfillment “We…
Found in Robotics News & Content, with a score of 10.11
May 03, 2022
…like ours, because it allows us to avoid large CapEx [capital expenditures], which ultimately helps Fulfyld deliver better pricing to customers,” stated AJ Khanijow, CEO of Fulfyld. Fulfyld finds efficiencies “We’ve specifically designed our system to increase productivity in e-commerce operations where more labor is required to ship directly to consumers,” said Lior Elazary, co-founder and CEO of inVia Robotics. “As consumer demands for next- or same-day delivery increase and labor supplies decrease, we’re able to help 3PLs keep up and meet their SLAs [service-level agreements].” The system will include: inVia PickerWall system including a fleet of inVia Picker AMRs…
Found in Robotics News & Content, with a score of 9.68
October 14, 2023
…necessarily afford [robots] or that wanted to take the capex route to investing in flexible automation.” The Körber program taps Locus’s RaaS, but it also can provide other partner systems, said Couto. It can even bundle multiple partner systems into a RaaS program for one customer, add in some software functionality from Körber, or even bundle in automation like put walls or voice. Robotics can effectively achieve measurable productivity gains, so the ability to move the costs into the opex bucket is an enticing option for companies struggling to find enough people for mostly manual operations, Couto said. “You’re either…
