XaaS – What’s that? New Business Models on the Upswing

LDS LF XaaS 400

Jan 14, 2020

Products and services in the field of lighting and building-services technology are increasingly being marketed in the form of subscription models. Known as ‘X as a Service’ (XaaS), ‘Light as a Service’ (LaaS), ‘Security as a Service’ and ‘Safety as a Service’, this trend offers benefits for both providers and customers. Digitalisation is not only driving this development but also giving rise to new business models. Light + Building, the leading trade fair for the sector, will put the spotlight on the innovations when it opens its doors in Frankfurt am Main from 8 to 13 March.

The idea is simple: in the last analysis, it is light not luminaires that customers want. Thus, via service agreements, they can obtain the best lighting for their premises without having to bear high investment costs. They not only profit from the reduced effort required but always have the latest technology and enjoy accounting benefits.

Digitalisation makes new services possible

The ongoing process of digitalisation is driving the trend. “In the future, lighting will be part of the internet of things”, says Dr Jürgen Waldorf, Managing Director of the Lighting Division of the German Electrical and Electronic Manufacturers´ Association (ZVEI) and the ‘licht.de’ initiative of the lighting industry. “Modern technology makes it possible to adapt light to the needs of individual users.” Lighting-system operation can be optimised if it is employed in combination with sun-protection systems, air-conditioning technology and user-behaviour models.

Given that service providers receive data from many different locations, they can develop algorithms that benefit all customers by helping to control the lighting situation more effectively and thus save energy.

‘Safety and security as a service’

‘As a service’ concepts are finding their way into almost all parts of the building-services field, i.e., security and fire protection. Security providers integrate many different kinds of technology and service to control access and nullify threats in advance. Cameras, barriers and turnstiles are not purchased but provided as part of a comprehensive service. Planning, installation, software, maintenance and operation is the responsibility of a single provider. Thus, the costs are stable and predictable over the entire contract period.

Experts believe that the majority of systems will be provided as services in the foreseeable future.

Go HERE for more information on XaaS

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