Semiconductor growth through as-a-service models
August 9, 2020
RESEARCH REPORT
In brief
In brief
- This report examines As-a-Service (AaS) as an increasingly relevant competitive growth model for the semiconductor industry.
- AaS enables an agile and dynamic business model with on-demand and plug-and-play services targeted to both consumers and businesses.
- The top 6 reasons for adopting an AaS model along with the right questions to ask when considering an AaS business model.
- Download the AaS Quick Reference Guide to determine the different advantages to each model.
The top 6 reasons for AaS implementation
We answer “the why” behind companies increasingly interested in moving to AaS:
1. Operational efficiency
Service consumers achieve a shift from high CapEx to more predictable OpEx + predictable recurring and renewable revenue streams.
2. Flexibility & agility
Scale capacity, operations and adjust cost based on demand by purchasing solutions that fit a need instead of developing in-house capabilities.
3. Breaking down barriers to innovation
AaS offers the availability of analytics and manufacturing tools by removing expensive capital equipment investment.
4. Greater share of wallet
AaS companies benefit from capturing greater share of wallet by providing maintenance, spare parts, peripherals, data analytics services and upgrades.
5. Recurring revenue stream
AaS enables manufacturers to provide components every month or every year, removing the lack of predictability to help derisk a company’s top line.
6. Enhance cross sell/upsell of services
AaS model offers valuable data that can be used to meaningfully service clients in the future.
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AaS models quick reference guide
Your definitive guide to AaS business models and key considerations.
READ MORESemiconductor companies can learn from and adopt well-known practices and models of other AaS providers and achieve outcomes.
Ready to take the leap to AaS?
Moving to an AaS model is top of mind for most C-suite executives across all industries. What questions should you be asking when considering a move to AaS:
- Control and ownership in intellectual property. How will we balance transferred risk ownership for services along the value chain while retaining core IP?
- Limited demand. How is the value of AaS recognized as an industry disruptor, revenue generating mechanism, or if our competitors are reluctant to embrace AaS?
- Operational feasibility. How can my company distinguish among AaS models that are value-adds rather than operations disruptors?
- Transferred risk ownership. Does my company have the proper visibility to measure, manage and track our risks? Do we have the right SLA’s in place to minimize risk?
- Changes to operating model. Is our business prepared for the operating model shift that coincides with the AaS business model shift? What needs to change?
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