The Business of RaaS: Deployment Acquisition Cost

It’s relatively easy for a customer to try a RaaS offering because they don’t need to commit to significant capital expenditures. They treat the robots as an operating expense.

The biggest benefit of a Robotics as a Service model is that the incentives of service providers are fully aligned with those of their customers.

The median bootstrapped B2B SaaS company currently spends around 90% of its annual recurring revenue on costs—25% on go-to-market strategy and execution, 24% on research and development, 15% on administrative and miscellaneous expenses, 13% on website hosting and implementation, and 10% on customer retention. Each of these categories of cost is now... See more

In fact the BYOC model has some tension and perverse incentives. Most of their billing models are priced as the number of nodes under management. Their way to increase revenue is to add more nodes to your cluster! An optimization that shrinks node count will drop revenue. The SaaS provider has the opposite incentive - it optimizes its stack at ever... See more