Avenue Managed Services LLC and Findustrial announce a partnership to launch and expand the Device as a Service (Equipment-as-a-Service, EaaS) project in the US market.

These two companies stated that they will jointly assist original equipment manufacturers (OEM) and system integrators in designing, financing, and operating the EaaS project. Both parties agree that a successful EaaS project requires three conditions: a viable business model, capital willing to provide financing, and an operational system capable of continuing to manage the project after the first contract is signed. Avenue and Findustrial provide each one of these capabilities.

In traditional equipment sales, the transaction typically ends once the equipment is delivered, debugged, and payment is made. However, in the "as-a-service" model, that is when the relationship truly begins. OEM System integrators, end-users, support service teams, and capital providers will maintain collaboration throughout the entire lifecycle of the asset. Success or failure depends on performance, uptime, utilization rates, and the results of customer purchases. For OEM and system integrators, this can transform a one-time equipment transaction into a long-term customer relationship and an opportunity for recurring revenue.

Avenue indicates that its contributions include experience in American service-oriented approaches ( Servitization ), project development capabilities, as well as existing relationships with capital providers. Avenue states that equipment financing is already quite mature in the United States, but the true EaaS financing is different; its structure relies on pay-per-use models, service level agreements, equipment performance obligations, and residual value risks. Avenue will provide guidance when capital providers come into contact with this relatively new structure.

Findustrial brings its device-as-a-service operation system, as well as experience in conducting actual projects with manufacturers in Europe, including the selection of metrics to use, designing business models, managing usage data and billing, and arranging refinancing behind the projects. Avenue indicates that OEM in the United States and system integrators can build their own models based on this experience.

According to Avenue, its business knowledge, service-oriented experience, and capital connections complement Findustrial's presence in Europe, as well as EaaS's experience and operational systems, jointly serving the American market.

Building a bridge for European OEM to enter the US market

The cooperation between the two parties also provides a bridge for European OEM to enter or expand their business in the United States. Manufacturers may already possess proven technologies and viable business models in their home markets, but they may still face different requirements regarding financing, contracting, risk allocation, and capital acquisition in the U.S.

Two companies stated that they can help such manufacturers adjust their business models and provide technology in a “service-oriented” manner in the United States, without the need to establish their own financing and service infrastructure. On one hand, they leverage their relationships in Europe through Findustrial, and on the other hand, they rely on the capital partner network of Avenue in the United States. For manufacturers that already sell equipment in the US, this “as-a-service” approach can be implemented alongside traditional equipment sales, rather than replacing them.

Both parties stated that their goal is to help OEM and system integrators deliver the technology in the United States on a “as-a-service” basis.

"The core of servitization is to continuously provide value and results, rather than selling equipment once and for all," stated Peter Lobin of Avenue Managed Services.

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