Device as a Service (DaaS): Software Monetization Strategies and Robotaxis
Device as a Service (DaaS): Monetization Strategies for Software and Robotaxis
Technology is evolving rapidly. Robotaxis are appearing, and AI coding tools and no-code/low-code platforms are making app creation easier and more affordable. This is changing how software and software services generates revenue. Device-as-a-Service (DaaS) is becoming a major opportunity, extending beyond laptops to various specialized appliances, including Robotaxis.
Software Monetization: The Challenge
Software companies previously relied on selling licenses or upfront charges or subscription fees. However, AI has simplified and reduced the time and costs of app development. Therefore, how can software developers and service providers sustain growth in their businesses? Devices. Unlocking APPs (versus purchasing apps). Fit-for-purpose devices. Appliances.
Even Software-as-a-Service (SaaS) subscriptions face challenges. Cloud hosting and tech talent costs are increasing. Vertice reports SaaS prices increased by an average of 12% in the past year. This makes it difficult for SaaS providers to operate and price their products.
DaaS: A New Approach
DaaS involves providing a device as part of a service, with a monthly fee covering hardware, software, maintenance, and support. This transforms a large expense into a monthly bill. It’s not the same as leasing a bunch of bundled hardware and software. It’s all inclusive with the service. Just return it or get a new one when the time is up. How about a personal/private ChatGPT LLM device in your home, where your outputs are kept safe on-prem and not on OpenAIs servers?
Here's how it works:
Needs Assessment: The DaaS provider and the user determine the appropriate devices and software.
Preparation: The provider sets up the devices with software and security measures for immediate use.
Delivery and Deployment: Devices are activated, delivered and configured as defined for the user's team and use cases, whether in the office or remotely through a device control platform.
Ongoing Maintenance: The DaaS provider manages policies, updates, patches, and fixes to ensure security and efficiency of the service. They also monitor usage and device performance.
Upgrade Process: The provider securely wipes data, retrieves the old device, and handles responsible recycling.
DaaS is also beneficial for "fit-for-purpose" devices, such as tablets in retail, rugged devices for field workers, or medical equipment. Companies gain:
Cost Predictability: Monthly fees replace large purchases.
Scalability: Adjust plans to accommodate more or fewer devices.
Reduced IT Burden: The DaaS provider manages device administration.
Access to Latest Technology: Teams receive updated hardware and software.
The Device Control Platform: The Core Component
For Managed Service Providers (MSPs) or new businesses entering the DaaS market, the device control platform layer is crucial. It enables the device lifecycle (and service) specialized devices. It enables:
Security and Access Enforcement: Establishing rules for device network access, APPs and data protection.
Update and Patch Management: Automating updates to maintain device security and functionality.
Remote Management: Accessing and troubleshooting devices remotely, essential for remote or hybrid teams.
Performance Monitoring: Gaining insights into device usage and performance for workflow optimization.
Onboarding/Offboarding Efficiency: Quickly preparing new devices and securely removing data from old ones when employees/users leave.
Payment enforcement: Services can be activated and deactivated based on policies and procedures.
Without a robust device control platform, delivering DaaS effectively at scale would be time consuming and challenging. It is the foundation of the DaaS operation, ensuring the operator has the information and capabilities to successfully manage changes and configurations of the device.
Device as a Service Stack
Robotaxis: DaaS in Action?
Robotaxis are advanced battery-powered devices on wheels. Considering them as a service unlocks new possibilities:
Robotaxis on Demand: Ride-hailing or transportation operators could subscribe to Robotaxis and its features to operate a fleet of Robotaxis.
Software and device monetization reimagined: This DaaS model may be ideal for monetizing additional features, devices and services during a Robotaxi ride. On top of the $4.20 per ride fee, a rider could choose to watch advertising on smart screens for a reduction of $0.50. on the ride fee. The Robotaxi managed service provider collects $1.00 from advertisers.
The Robotaxi may also have access to third-party screens and devices that unlocks access to vending machines, games, or features like window shades and upgraded massage seats.
The Broader Perspective
The DaaS model is generating new opportunities, particularly with Robotaxis and any smart devices. Businesses and users can obtain necessary devices without ownership concerns. Software creators can explore new ways to monetize their innovations, focusing on user experiences through hardware and software bundled DaaS subscriptions. It's about unlocking opportunities and experiences through new payment and membership models.
Message me at lee.yee@learnbotix.com if you have questions about setting the model up or business ideas to share about Device as a Service model.
Tesla Robotaxi: Lots of open room for many 3rd Party Devices