Robotics Company Deploys a Business-Critical HaaS Service
A young robotics company builds highly specialized robots, using its preferred vendors and materials, with a lease from CSC.
Challenge
A young robotics company is on a mission to automate a highly labor-intensive industry by deploying robots to its customers’ distribution and shipping facilities.
These highly specialized robots have an extensive bill of material, with roughly 60 items that need to be procured—and a hefty price tag. Spending tens of thousands of dollars every time the company wanted to deploy a single robot was not capital efficient. Furthermore, the company’s customers weren’t willing or able to purchase the costly robots up front.
Solution
With a lease from CSC, the company is now providing a mission-critical Robotics as a Service (RaaS) option to its customers.
The company builds the robots, using its preferred vendors and materials, and then invoices CSC for each fully built robot. CSC then reimburses the company for the cost to build each robot, which is then owned by CSC. The company pays a monthly fee to CSC, while collecting a monthly rental fee from its customers.
Results
As a result of this leasing agreement, CSC has enabled the company to offer a valuable service and deploy more units.
Benefits for the Company
- New service option to attract and retain customers—without the upfront costs
- Immediate ROI, as the company sets the markup
- Turned a traditional one-time sale into monthly recurring revenue
- Flexibility to scale the program up and down based on each client’s needs
- Expansion of market share
- The company chooses vendors and materials
Benefits for the Company's Customer
- Convenient subscription that includes hardware and software
- The company manages the manufacturing of the robots
- More manageable payments spread out over time
- Easily refresh technology as needed— no need to worry about refinancing
- The customer can convert a large capital expense to an operating expense