At this point, we’re all subscribing to something. Whether it’s streaming documentaries, getting fresh coffee delivered, or renting e-bikes to pretend we’re into fitness—subscriptions are everywhere.

But while it’s easy to sign up for a subscription, building a Product-as-a-Service (PaaS) model is a whole different story. It’s a fundamental shift in how companies approach revenue, customer relationships, and sustainability. Every company seems stuck without a manual, trying to figure out the next puzzle piece.

"A few key questions keep repeating themselves," said Florian, founder of P2S and Loopz Bike, and Scott, CEO of circuly. 

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In our newly launched interview series, we’re talking to industry experts, gathering real-world examples, and answering the most frequently asked questions. This blog covers the essentials of PaaS—from getting started to scaling up + examples of companies already operating the PaaS business model and the lessons to be learned from their experience.

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Watch the Discussion on Product-as-a-Service

For deeper insights, watch the full discussion between Florian Andre (P2S) and Scott Galvao (Circuly) as they break down the key elements of launching and scaling a Product-as-a-Service model.

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In this article:

• What are the biggest motivators driving companies to shift to subscription-based models?
• What industries are best suited for adopting Product-as-a-Service models?
• Can you share examples of companies that have successfully transitioned to PaaS? What lessons can we learn from them?
• How does shifting from CAPEX-heavy sales to OPEX-based recurring revenue impact a company’s financial health?
• What are the key product characteristics that make a subscription model viable?
• How can companies evaluate whether their customer base is ready for PaaS?
• What are some early warning signs that a company may struggle with implementing PaaS?
• How to start a PaaS model? What are the critical building blocks of a PaaS model?
• What sort of technology and operational infrastructure is required to support this business model?
• How do partners and ecosystems help companies succeed in managing subscriptions?
• How do you see subscription models evolving in the next 5–10 years?

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About the speaker: Florian Andre

Florian & P2S

Florian is the founder of P2S, a Belgian consulting firm that helps manufacturers shift from traditional sales to subscription models. With over seven years of experience, Florian and his team at P2S have guided more than 35+ companies—including Philips, Hilti, and Schneider Electric—through the transition to product-as-a-service models.

Florian & Loopz Bikes

Florian is not only running a consultancy for product-as-a-Service business models but is also running a bike subscription business called Loopz Bikes, a B2C bike subscription service. Loopz allows parents to swap bikes as their kids grow, eliminating the hassle of buying and reselling. Powered by the circuly solution, Loopz showcases how a well-structured subscription model can solve real problems efficiently.

About the speaker: Scott Galvao

Scott is the CEO of circuly, a subscription management platform for physical products. With a background in scaling e-commerce brands on Amazon and eBay, he joined circuly in 2023 to transition circuly from a startup to a scaleup.

circuly has enabled over 100+ businesses like Buke Club Germany, Riese & Müller, Egret etc. to automate and scale their subscription operations with the circuly solution. Under Scott's leadership, circuly has become a go-to platform for businesses looking to shift to recurring revenue models and positioned circuly as the go-to subscription management platform for physical product subscriptions. 

Question 1: What are the biggest motivators driving companies to shift to subscription-based models?

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Florian shared that from the provider’s point of view—basically, the manufacturers’ perspective—there are a few big motivators for shifting to subscription-based models:

1. It’s all about predictability and recurring revenue
Businesses get a lot more stability in the business when they can count on consistent revenue streams. For example, companies like Hilti have more than 80% of their business as recurring revenue, which makes things a lot more predictable and attractive.

2. Monetising the complete life cycle of products
In a traditional sales model, businesses usually just sell and forget—but with subscriptions, they retain ownership. This means they can keep monetising the product throughout its life cycle, which is a pretty big deal.

3. Sustainability is another huge factor.
There’s growing pressure from policymakers to be more sustainable, and by nature, product-as-a-service models are great for this. They incentivise using resources more efficiently, which is a win-win for both providers and the planet.

4. Subscriptions can actually speed up sales cycles.
Florian shared their experience of working with a manufacturer of medical devices in Switzerland. They sell to big organisations like GSK, Pfizer, and Roche, where money isn’t really the issue—but getting approvals is. Offering their products as a service simplified the procurement process and sped up sales cycles significantly.

From Scott’s point of view there are three major motivators for companies to shift to subscription-based models:

1. It’s consumer-driven.

• Consumers want access to top-end products without paying the full price upfront. Even if they don’t have the budget to buy a high-end item, they still want to use it.
• A great example is the try-before-you-buy model. Scott mentioned a client selling high-end e-bikes priced up to 10,000 euros. The subscription model allows customers to try these bikes first, fall in love with them, and then decide to buy.
• It’s not just about big-ticket items. For example, Scott himself mentioned the newest Google Watch—with tech advancing so quickly, a subscription lets you always have the latest version without buying a new one every year.

2. It’s about convenience.

• Subscriptions make it easy to access seasonal products—like renting gardening equipment for a season and sending it back afterward.
• There’s also the maintenance factor. Manufacturers can maintain products like lawnmowers much better than customers can, which makes subscriptions a hassle-free option.

3. It’s profitable for businesses.

• Some companies are making three to five times more profit by subscribing out products long-term instead of selling them outright.
• For instance, they can rent out a lawnmower multiple times, maintain it, and earn back the product’s price and more over multiple rental cycles.
• This model also enables companies to earn 70-80% of the product price on a long-term rental basis, with the potential for even more profit through multiple usage cycles.

4. External factors and regulations.

• Increasingly, government regulations are pushing companies to reduce environmental impact. Subscription models, which encourage reusing and maintaining products instead of disposing of them, fit well with these regulatory trends.
• These regulations are only going to become more stringent over time, making the circular economy and subscription-based models not just attractive but almost necessary.

Question 2: What industries are best suited for adopting Product-as-a-Service models?

In the interview, Florian and Scott shared valuable insights on the industries best suited for adopting Product-as-a-Service (PaaS) models based on their extensive experience. Florian approached it from a B2B perspective, highlighting sectors like HVAC, manufacturing equipment, and healthcare, where the focus is on managing complex assets efficiently. Meanwhile, Scott provided a B2C perspective, emphasising industries such as mobility, kids and baby products, and consumer electronics, where convenience and flexibility are key drivers for subscriptions.

Here’s a closer look at the industries they mentioned and why they’re a natural fit for PaaS.

B2B Industries and Products

1. HVAC Equipment (Heating, Ventilation, Air Conditioning)

Offering air quality and temperature control systems on a subscription basis to manage maintenance and upgrades efficiently.

2. Manufacturing Equipment

Example: Injection molding machines with only key components (like the core part) offered on a subscription.

3. Healthcare and MedTech

Example: MRI machines and dental chairs offered as subscriptions to reduce upfront costs for clinics.

4. Energy Management

Includes EV chargers, batteries, and data centers focusing on energy efficiency and recurring revenue.

5. Industrial Consumables and Spare Parts

Example: Spare parts for industrial mixers offered as subscriptions due to their high margin and regular replacement needs.

6. Software and Telematics

Example: Manufacturers offering fleet management software on a subscription as an entry point to equipment-as-a-service.

7. Medical Devices

Example: Defibrillators in public buildings on a subscription basis to cover maintenance and compliance requirements.

B2C Industries and Products

1. Mobility (Bikes, Scooters, Cars)

• Example: High-end e-bikes on a subscription basis, allowing consumers to try before they buy.
• Another example: Subscription for Teslas for those who prefer flexibility without ownership.

2. Kids and Baby Products

Example: Baby carriages and other gear on a subscription to avoid frequent purchases as kids grow.

3. Consumer Electronics

Example: Smartwatches like the Google Watch on a subscription, making it easier to upgrade as technology evolves quickly.

4. Sports and Seasonal Equipment

Example: Skis, gardening tools, and snowblowers on a subscription for seasonal use.

5. Home and Furniture

Example: Furniture subscriptions in Sweden for students, offering fully furnished rooms on a semester basis.

6. Specialty and Leisure Items

Example: Mobile saunas and whirlpools available for short-term subscriptions.

7. Consumables

Example: Diapers and razors on a subscription basis, similar to Amazon’s subscribe-and-save model.

Question 3: Examples of companies that have successfully transitioned to PaaS? What lessons can we learn from them?

Here are the lessons that can learned from companies that have successfully adopted Product-as-a-Service (PaaS) models:

Key takeaways:

• Subscriptions speed up sales cycle: Example from a medical device manufacturer. 
• Subscriptions don't cannibalise sales: Example from an e-bike manufacturer. 
• How to include established dealer and retailer network when moving to subscription-based business model: Example from an e-bike manufacturer. 
• The focus point of the subscription is not the product, but the service: Example of Swapfiets.
• The right infrastructure from the start speeds up ROI: Example of Loopz Bikes
• Subscriptions offer a competitive advantage in a highly saturated market: Example of Philips. 
• The focus in a subscription model is outcomes not the product: Example of Care & Energy Partners
• Subscriptions turn returned products into opportunity: Example of a baby goods tech company. 
• Product gets the job done but bundling maintenance & repair in a subscription model improve customer satisfaction: Example of Hilti’s tooling-as-a-service. 
• Keeping support costs lean should be a priority: Example of myTIER scooter subscription. 

Read in detail about the learnings and companies in this article: Product-as-a-Service Case Studies & Success Stories: Lessons learned from Philips, Riese & Müller, and More. 

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Question 4: ​​How does shifting from CAPEX-heavy sales to OPEX-based recurring revenue impact a company’s financial health?

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Switching from CAPEX-heavy sales (big upfront payments) to OPEX-based recurring revenue (smaller, regular payments) can create some cash flow challenges at first. Florian explained this using the “fish model”: at the start, costs go up while revenue dips, creating a fish-belly shape in cash flow. The good news? Once subscriptions start rolling in, the revenue stream becomes more predictable and scalable.

To manage this shift smoothly, companies usually take one of these approaches:

1. Gradual Self-Financing: Handling the Fish Belly with Internal Cash

• Companies can use their own cash reserves to fund the equipment gradually, without relying on external capital right away.
• This helps manage the initial cash flow dip of the fish model until recurring revenue kicks in.

2. Sale and Leaseback: Smoothing Out Cash Flow

• With sale and leaseback, companies sell equipment to financiers for immediate cash and lease it back to offer as a service.
• This keeps assets off the balance sheet, making it easier to maintain a healthier financial position.

3. Special Purpose Vehicles (SPVs): Separate Financing to Stay Afloat

• Setting up SPVs allows companies to finance equipment separately from their main business, making it easier to handle the cash flow challenges of the fish model.
• Example: Grover uses SPVs to fund consumer electronics subscriptions by geography or product type.

4. Turning CAPEX into OPEX: Why It’s Worth It

• Moving to OPEX-based revenue makes it easier for customers to adopt high-cost products by turning big upfront payments into smaller, manageable fees.
• Scott shared an example of solar panels offered on subscription, where the provider handles maintenance and even sells excess energy—turning a one-time sale into multiple revenue streams.

Question 5: What Are the Key Product Characteristics That Make a Subscription Model Viable?

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For a product to work well with a subscription model, it generally needs to have a few key characteristics. Scott and Florian outlined some important ones:

1. High-Quality and Premium Products

• Products need to be high quality to survive multiple usage cycles without breaking.
• Florian pointed out that all 36 P2S clients offering subscriptions have premium products in their niches.

2. High Price Point 💸

• Expensive products with a high upfront cost are easier to sell as subscriptions by spreading payments into smaller, manageable amounts.
• Example: E-bikes priced at 10,000 euros are easier to subscribe to than to buy outright.

3. Maintenance Requirements

• Products that need regular maintenance or after-sales service are ideal for subscriptions, as it’s convenient for customers to let the provider handle upkeep.
• Examples: Lawnmowers and medical devices are often subscribed to for this reason.

4. Frequent Upgrades

• Products that benefit from frequent upgrades work well as subscriptions, allowing customers to always have the latest version.
• Example: Consumer electronics like smartwatches and smartphones fit this category.

5. Seasonal or Purpose-Specific Products

• Items that people need only for a specific season or purpose are well-suited for subscriptions.
• Examples: Gardening tools, skis, and snowblowers that customers use seasonally.

6. Popularity on Second-Hand Marketplaces

• If a product has high resale value, it’s a good indicator for subscriptions because it suggests quality and demand.
• Scott suggested looking at how often a product appears on second-hand marketplaces as a sign of its potential for subscriptions.

7. Connectivity for B2B Products

• Florian mentioned that for B2B products, having sensors and connectivity is crucial to monitor the health and usage of equipment remotely.
• Example: Industrial dishwashers with sensors for predictive maintenance.

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Question 6: How can companies evaluate whether their customer base is ready for PaaS?

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Scott and Florian shared some practical ways for companies to gauge if their customer base is ready for Product-as-a-Service (PaaS) models. Here are the key indicators they mentioned:

1. Look for Existing Demand or Competitors

• If there are competitors in the market already offering subscriptions, it’s a strong sign that customers are ready.
• Example: If your customers hesitate to buy due to high upfront costs, offering a subscription could lower that barrier.

2. High-Quality Products with Unused Potential

• Products that are high quality but frequently appear on second-hand marketplaces suggest that customers want them but might prefer access over ownership.
• Scott mentioned an example of a company stuck with high-quality returns that couldn’t be resold but thrived once offered on subscription as “open box” products.

3. Solve the Return Problem with Subscriptions

• Companies with a high return rate might benefit from offering those products as subscriptions instead of letting them sit idle.
• Example: A company with a pile of returned products in its warehouse turned them into a profitable subscription business.

4. Customer Hesitation as a Signal

• Customer hesitation—especially for high-cost or infrequent-use products—can indicate a readiness for “try before you buy” or subscription options.
• Example: Florian shared a story about hesitating to buy hiking shoes at Decathlon until the salesperson offered a try-before-you-buy option, which immediately reduced the hesitation.

5. Conduct Customer Interviews for Direct Feedback

• Florian emphasised the importance of directly interviewing customers to understand their pain points, motivations, and openness to subscription models.
• These interviews help validate if the subscription model addresses real customer needs or if it’s just a hypothesis.

6. Check for Demand for Variable Pricing Plans

• If customers ask about variable pricing plans or show reluctance to pay full price upfront, it’s a good sign that OPEX-based models might appeal to them.
• Scott highlighted that feedback on pricing flexibility often reveals a readiness for subscriptions.

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Question 7: What are some early warning signs that a company may struggle with implementing PaaS?

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Florian and Scott outlined several early warning signs that suggest a company might face challenges when implementing Product-as-a-Service (PaaS) models. Here are the key indicators:

1. Lack of Internal Alignment and Executive Buy-In

• If the CEO and leadership team aren’t fully committed to the subscription model, it’s a major red flag. Without their support, the project is unlikely to succeed.
• Florian emphasised that executive buy-in is crucial for driving the cultural and operational changes needed for PaaS.

2. Poor Data and IT Infrastructure

• A weak data and IT infrastructure can derail PaaS initiatives since most ERP systems aren’t designed to manage recurring revenue and customer lifecycles effectively.
• Example: Florian mentioned that Loopz partnered with Circuly to handle the complexities of managing products and customers over time.

3. Resistance from Sales Teams

• Sales teams may resist subscriptions due to concerns about how it will impact their commissions and bonuses.
• Florian highlighted that the “elephant in the room” during workshops is often how subscriptions will affect sales compensation. Addressing this upfront is critical.

4. Mismatch Between Customer Expectations and Value Delivery

• Promising more than what’s delivered can lead to customer dissatisfaction and higher churn rates.
• Florian warned against “too much marketing fuzz” without real impact, as customers will quickly see through it.

5. Budget Constraints and Cash Flow Issues

• Smaller companies may struggle to finance the transition from CAPEX to OPEX without a solid cash flow strategy.
• Scott pointed out that while larger companies can use existing sales income to support the shift, smaller companies need quick decision-making and budget allocation to survive the initial cash flow dip.

6. Lack of Market Testing and Customer Feedback

• Companies often assume that their customers are ready for subscriptions without actually asking them.
• Florian recommended conducting in-depth customer interviews to validate demand before making the shift.

7. High Return Rates Without a Plan for Reuse

• High return rates can be a sign that customers aren’t convinced by the offering. However, if managed well, returns can be converted into subscription opportunities for open-box products.
• Example: A company with a warehouse full of returned products turned them into a profitable subscription business.

Question 8: How to start a PaaS model? What are the critical building blocks of a PaaS model?

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Starting a Product-as-a-Service (PaaS) model involves careful planning and execution. Scott and Florian outlined some critical building blocks and a three-phase approach to ensure a smooth transition to subscriptions. Here’s a summary:

1. Ease of Use for Both Company and Customers

• Make sure the subscription process is simple for customers to sign up and manage.
• Internally, the system should be easy to operate for your team to reduce friction.
• Example: Offering a self-service portal for customers to manage subscriptions reduces the need for manual support.

2. Trackability: Know Where Your Products Are

• You need to be able to track your products by serial numbers or even GPS for high-value items.
• This helps manage billing, maintenance, and replacements effectively.
• Example: Using GPS tracking for expensive e-bikes to monitor usage and location.

3. Automation and Scalability

• You need software that can automate billing, renewals, and notifications to handle hundreds or thousands of subscriptions smoothly.
• Scott pointed out that Excel sheets won’t cut it once subscriptions scale beyond a few dozen.
• Example: Partnering with platforms like Circuly to automate processes and avoid manual work.

4. Limit Customer Service Costs

• Offering a self-service portal where customers can manage upgrades, downgrades, or cancellations reduces the need for expensive customer support.
• Automation in customer interactions is key to keeping costs down.

The Three-Phase Approach by P2S

Florian shared a three-phase approach for implementing PaaS, which includes:

Phase 1: Conceptualisation

• Find a concept-market fit: Understand what your customers want, how much they’re willing to pay, and what features are essential.
• Customer interviews are critical to validate the subscription model before investing heavily.
• Example: Testing if customers prefer monthly or annual plans for high-end products.

Phase 2: Building the Infrastructure

• Set up IT systems: Choose platforms that handle recurring billing, product tracking, and CRM efficiently.
• Financing and compliance: Establish financing options like sale and leaseback to manage cash flow and ensure compliance with IFRS 16 for off-balance sheet benefits.
• Contracts and risk management: Prepare clear contracts and legal frameworks to manage risk and ensure compliance.

Phase 3: Go-to-Market Strategy

• Design the customer journey: Use the “land, adopt, expand, renew” model to guide customers from sign-up to renewal.
• Offer flexibility: Allow customers to pause, downgrade, or upgrade their subscriptions easily.
• Train sales teams: Help them understand how to sell subscriptions effectively and address concerns about commission impacts.

Question 9: What Technology and Operational Infrastructure Is Required to Support a PaaS Model?

1. Subscription Management Software

• Relying on Excel sheets for managing subscriptions might work initially, but it quickly becomes unmanageable as subscriptions scale.
• Florian emphasised that platforms like Circuly are crucial from the start to handle payments, product tracking, and customer management smoothly.
• Key Feature: Automated billing and renewals to minimise manual work.

2. Seamless Checkout and Payment Integration

• A robust checkout system that integrates directly with your website is essential for ease of use.
• Scott highlighted that Circuly’s checkout supports everything from credit checks to automated payments, ensuring a frictionless user experience.
• Key Feature: Multiple payment options and automated retries for failed payments.

3. Product Tracking System

• You need to track products efficiently, whether it’s through serial numbers or GPS for high-value items.
• This helps manage inventory, maintenance, and billing accurately.
• Example: Tracking e-bikes by GPS to monitor usage and streamline maintenance.

4. Automation and Scalability

• Automation is essential to handle not just dozens but thousands of subscriptions without adding headcount.
• Scott mentioned that Circuly’s hub automates tasks like email notifications, payment retries, and subscription upgrades/downgrades.
• Key Feature: A system that scales effortlessly as your customer base grows.

5. Customer Self-Service Portal

• A self-service portal allows customers to upgrade, downgrade, pause, or cancel their subscriptions without needing to contact customer service.
• This reduces customer support costs and improves the user experience.
• Scott explained that Circuly’s self-service portal helps keep customer service costs low by automating routine tasks.

6. IT Infrastructure for Data Management and Security

• Strong data management capabilities to handle customer information, usage data, and analytics securely.
• Ensuring compliance with data protection regulations (e.g., GDPR) is essential.
• Florian pointed out that most ERP systems aren’t designed for subscription management, making specialised software a must-have.

7. Flexibility and Integration Capabilities

• The system must integrate smoothly with existing ERP, CRM, and payment systems to avoid disruptions.
• Flexibility to offer different pricing plans, trial periods, and contract options is crucial to adapt to various customer needs.
• Florian mentioned that choosing the right IT infrastructure and partners is key to a successful PaaS model.

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Question 10: What role do partners and ecosystems play in helping companies succeed in PaaS?

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Building a successful Product-as-a-Service (PaaS) model requires a strong ecosystem of partners to manage everything from financing to logistics. Scott and Florian highlighted how partnerships play a crucial role in making subscription models work efficiently and at scale. Here are the key points:

1. Specialised Expertise and Tools

• As the subscription industry has expanded rapidly, it has become essential to leverage specialised partners for tasks like financing, insurance, logistics, and refurbishment.
• Scott mentioned that many companies start with basic systems (like Excel sheets) but soon realise they need specialised software like Circuly to scale.
• Key Example: Using Circuly for subscription management and financing partners for leaseback options.

2. Access to a Pre-Built Ecosystem

• Florian highlighted the P2S Subscription Expert Ecosystem with 20+ partner companies that handle everything from IT infrastructure and legal support to CPQ tools (Configure, Price, Quote).
• This pre-built ecosystem allows companies to shortcut the research process and quickly find the right partners.
• Key Example: Working with IT and logistics partners to manage product tracking and returns seamlessly.

3. Reducing Complexity and Time to Market

• Partnerships simplify the process of launching and scaling subscriptions by outsourcing specialised tasks.
• Scott explained that Circuly acts as a one-stop solution for managing checkout, automation, and customer self-service, reducing the need for multiple vendors.
• Key Benefit: Faster time to market by leveraging ready-to-use solutions and expertise.

4. Financing and Risk Management

• Access to financing partners allows companies to manage the cash flow gap during the transition from CAPEX to OPEX by offering options like sale and leaseback.
• Florian pointed out that partnerships with financiers are crucial for managing upfront costs and keeping the business sustainable during the initial phase.

5. Knowledge Sharing and Best Practices

• Florian mentioned the VIP Subscription Enthusiast Club by P2S, where clients can share experiences and best practices directly with each other—often without P2S being in the room.
• This peer-to-peer learning accelerates the adoption of effective strategies and solutions.
• Key Example: Organising round tables for clients to discuss pricing strategies, financing options, and IT solutions.

6. Future-Proofing the Business

• Building a network of partners ensures that as new challenges arise—like regulatory changes or market shifts—there’s already a robust support system to adapt quickly.
• Scott noted that the ecosystem approach prepares companies for long-term scalability and operational efficiency.

Question 11: How Do You See Subscription Models Evolving in the Next 5–10 Years?

1. Expansion into New Industries

• Subscription models will expand beyond traditional sectors like software and entertainment into unexpected industries such as construction, trade fairs, and industrial equipment.
• Scott mentioned a prospect offering tool subscriptions for construction sites to ensure workers always have the latest, well-maintained tools—highlighting the marketability advantage.
• Key Example: Subscription models for trade fairs focusing on sustainability and PaaS are emerging across North America, Europe, and Asia.

2. Strong Push from Regulations and Sustainability

• Florian emphasised that regulations and sustainability policies will be powerful drivers for PaaS adoption, especially in Europe.
• Example: The EU’s Clean Industrial Deal and the European Green Deal explicitly promote Product-as-a-Service to support the circular economy.
• Key Insight: As sustainability regulations tighten, more companies will turn to subscription models to align with these standards.

3. Data and Connectivity Will Be Critical

• The integration of sensors and connectivity will become essential for managing maintenance, usage data, and predictive analytics in PaaS models.
• Florian mentioned that adding sensors to equipment can help reduce energy bills by 10% through better maintenance planning.
• Key Trend: Leveraging data analytics to design products that are easier to repair and maintain will be a significant focus.

4. Shift from Ownership to Usership

• As younger generations take on more leadership roles, the shift from owning products to accessing them as a service will accelerate.
• Florian highlighted that the mindset is shifting from “Why should we adopt subscriptions?” to “How do we implement them efficiently?”.
• Key Example: The success of Loopz’ bike subscriptions demonstrates that customers increasingly prefer access over ownership.

5. Market Differentiation Through Services and Software

• As product technical advantages become harder to sustain, business model innovation through subscriptions will become a primary differentiator.
• Florian suggested that service-based differentiation will help companies stand out in competitive markets.
• Key Trend: The focus will be on bundling services like maintenance, upgrades, and insurance with products.

6. More Integrated Ecosystems of Partners

• The rise of specialised partners for financing, logistics, IT, and refurbishment will streamline subscription offerings.
• Scott mentioned that Circuly’s partnerships with financiers and logistics providers are crucial for managing cash flow and returns efficiently.
• Key Insight: Building a robust partner ecosystem will be essential for scaling subscription models.

7. Policy-Driven Growth

• Government incentives and funding, like the EU’s 100 billion euro investment in circular economy principles, will accelerate the adoption of subscription models.
• Florian highlighted that upcoming policies explicitly mention PaaS as a preferred model for achieving sustainability targets.

Final Thoughts

The transition to Product-as-a-Service is more than a business model shift—it’s a new way of thinking about value creation, customer relationships, and sustainability. Whether in B2B or B2C, companies that embrace this shift now will be better positioned to thrive in the future economy.

For businesses considering the leap, the key takeaway is to start small, test demand, and build a scalable system before going all in. Those who get it right will unlock new revenue streams, deeper customer relationships, and a more sustainable future.