Get ready to ride the wave of the future with Machine-as-a-Service (MaaS) — a concept that’s set to revolutionize the manufacturing landscape. At Cisco, we’re all about staying ahead of the curve, and we’re here to help you navigate this thrilling new frontier. Let’s talk about the current state of things, what to expect, and how technology will play a role in the Manufacturing revolution.

The Traditional Approach: Capital Expenditure on Machinery

Traditionally, acquiring machinery has been a straightforward capital investment or CAPEX, with costs factored into annual budgets. These machines, critical for steady production, come with the risk of mechanical failures halting operations and revenue. The reliance on machine reliability and maintenance has been a cornerstone of the manufacturing industry, but that’s all changing as we speak.

The Shift: Embracing MaaS

The manufacturing industry is experiencing seismic shifts, from the departure of skilled workers creating a talent gap to rising interest rates prompting budget re-evaluations. These factors, coupled with the scarcity of field service engineers crucial for maintenance, are steering the industry towards a new paradigm—Machine-as-a-Service.

The Cloud’s Influence: New Consumption Models

Cloud technology revolutionized software services, and now MaaS is making similar waves in manufacturing. This new model offers a performance-based payment system, allowing manufacturers to pay based on output rather than upfront machine costs, shifting from CAPEX to operational expenses (OPEX). This aligns the interests of manufacturers and machine builders, focusing on machine uptime and productivity.

MaaS presents machine builders with opportunities to stand out by offering value, not just competitive pricing. Manufacturers, on the other hand, enjoy the pay-per-use flexibility, potentially reducing the total cost of ownership and gaining access to superior technology without significant initial investments.

Technology: The Enabler of MaaS

Technology is critical in the transition to MaaS, with AI enabling predictive maintenance and reducing downtime. A robust wireless infrastructure is vital for data management, necessary for machine monitoring and proactive servicing. Manufacturers and machine builders must agree on data management and security to fully leverage this model’s benefits.

Cisco is leading this shift with innovative solutions, including AI-driven analytics and secure networking, empowering manufacturers and machine builders to excel in the industrial evolution.

The Bigger Picture

The Equipment-as-a-Service market is rapidly growing, expected to hit $8.4 billion by 2025, signaling a lasting shift in manufacturing practices. With Cisco leading the charge, the industry is embracing change and leveraging technology to optimize operations. AI is central to this revolution, offering predictive maintenance to minimize downtime and maximize efficiency. For successful AI implementation, machine builders must ensure constant monitoring from their headquarters, while a strong wireless infrastructure is essential for managing the data securely. It’s critical for manufacturers and machine builders to jointly establish data protocols to maintain security in this data-driven environment.

As you embark on this journey, make sure your approach includes trusted partners, so you can futureproof your operations and protect your brand. Join us in exploring the benefits and opportunities of MaaS. Together, with our technology and your expertise, we’ll shape the factories of the future. Ready for more? Connect with us to make manufacturing history and view Cisco’s Portfolio Explorer for Manufacturing to explore how our manufacturing customers are leveraging Cisco products and solutions.


Steve Gansen

Senior Business Development Manager

Manufacturing Industry, Americas