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XaaS – What’s that? New business models on the upswing

13 Jan 2020

Products and services in the field of lighting and building-services technology are increasingly being marketed in the form of subscription models. Known as ‘X as a Service’ (XaaS), ‘Light as a Service’ (LaaS), ‘Security as a Service’ and ‘Safety as a Service’, this trend offers benefits for both providers and customers. Digitalisation is not only driving this development but also giving rise to new business models. Light + Building, the leading trade fair for the sector, will put the spotlight on the innovations when it opens its doors in Frankfurt am Main from 8 to 13 March.

The idea is simple: in the last analysis, it is light not luminaires that customers want. Thus, via service agreements, they can obtain the best lighting for their premises without having to bear high investment costs. They not only profit from the reduced effort required but always have the latest technology and enjoy accounting benefits.

Light + Building 2020: Digital networks in buildings make new services possible  (Source: Messe Frankfurt )
Light + Building 2020: Digital networks in buildings make new services possible (Source: Messe Frankfurt )

Digitalisation makes new services possible

The ongoing process of digitalisation is driving the trend. “In the future, lighting will be part of the internet of things”, says Dr Jürgen Waldorf, Managing Director of the Lighting Division of the German Electrical and Electronic Manufacturers´ Association (ZVEI) and the ‘’ initiative of the lighting industry. “Modern technology makes it possible to adapt light to the needs of individual users.” Lighting-system operation can be optimised if it is employed in combination with sun-protection systems, air-conditioning technology and user-behaviour models.

Given that service providers receive data from many different locations, they can develop algorithms that benefit all customers by helping to control the lighting situation more effectively and thus save energy.

‘Safety and security as a service’

‘As a service’ concepts are finding their way into almost all parts of the building-services field, i.e., security and fire protection. Security providers integrate many different kinds of technology and service to control access and nullify threats in advance. Cameras, barriers and turnstiles are not purchased but provided as part of a comprehensive service. Planning, installation, software, maintenance and operation is the responsibility of a single provider. Thus, the costs are stable and predictable over the entire contract period.

Experts believe that the majority of systems will be provided as services in the foreseeable future.

Light + Building 2020: market overview and innovation show

Light + Building, the world’s leading trade fair for the sector in Frankfurt am Main from 8 to 13 March 2020 in Frankfurt am Main, offers a comprehensive overview of progressive developments in the lighting and building-services sector and is the hotspot for innovative decision makers. One of the first ports of call with respect to Xaas is the special area of the German Electrical and Electronic Manufacturers´ Association (ZVEI) in Hall 3.0. Topical examples from the ‘Security as a Service’ segment will be presented by the Intersec Forum as part of
Intersec Building. This conference on connected safety and security technology will be held in Hall 9.1 on all days of Light + Building 2020.

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Background information on Messe Frankfurt

Messe Frankfurt is the world’s largest trade fair, congress and event organiser with its own exhibition grounds. With more than 2,600* employees at 30 locations, the company generates annual sales of around €733* million. We have close ties with our industry sectors and serve our customers’ business interests efficiently within the framework of our Fairs & Events, Locations and Services business fields. One of the Group’s key USPs is its closely knit global sales network, which extends throughout the world. Our comprehensive range of services – both onsite and online – ensures that customers worldwide enjoy consistently high quality and flexibility when planning, organising and running their events. The wide range of services includes renting exhibition grounds, trade fair construction and marketing, personnel and food services. Headquartered in Frankfurt am Main, the company is owned by the City of Frankfurt (60 percent) and the State of Hesse (40 percent).

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* preliminary figures 2019