Product-as-a-Service gives a customer an alternative – instead of buying the product, buy the result provided by the product. PaaS is a development of product rental or leasing, and transfers more responsibility to the provider.
Online connectivity enables remote access to a product and surrounding instrumentation. Using this connectivity, a provider can offer to operate and maintain a product to deliver outcomes defined in a service level agreement (SLA). For example, instead of buying air compressors, a factory owner may be able to buy compressed air as a service. To deliver this, the provider will need floor space and power connections in the factory. The provider will then install, monitor, control and maintain the compressors to deliver whatever is written into the SLA (for example, 25 psi between 06:00 and 18:00).