Product as a service

What is product as a service (PaaS)?

Product as a Service (PaaS) is a business model where customers pay regularly to use a product, instead of buying it outright. This is usually done through a subscription or usage-based plan. The company still owns the product but gives the customer access to use it for as long as they keep paying.

Along with the product, customers often receive extra services like maintenance, repairs, or upgrades. This makes it easier and more convenient for people to enjoy the benefits of a product without worrying about ownership, large upfront costs, or long-term commitment.

Characteristics of PaaS

• Subscription-based or pay-per-use model
• Integrated maintenance, support, and updates
• Performance-focused (value delivered over time)
• Enables sustainability through reuse and lifecycle tracking

Benefits of PaaS

• Predictable revenue for businesses
• Lower upfront costs for customers.
• Enhanced customer loyalty and retention
• Encourages sustainability and product longevity

Examples of PaaS

• HP Instant Ink: Customers subscribe to ink delivery based on usage.
• Philips Lighting as a Service: Businesses pay for lighting performance, not bulbs.
• Car subscriptions: Users pay monthly fees covering vehicle use, insurance, and maintenance.

Driftcharge Tip

When implementing PaaS, ensure customers clearly understand the value of ongoing access versus ownership. Transparency around pricing, service levels, and product upgrades builds long-term trust.

Ganesh Pawar

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Ganesh Pawar is the founder of Driftcharge, a subscription management app designed to help Shopify merchants streamline and scale their subscription businesses. With a deep focus on solving real-world pain points—like legacy account page support, flexible subscription options, and advanced analytics—Ganesh is passionate about building tools that drive growth and retention.