The Rise of Hardware as a Service

The concept of Hardware as a Service (HaaS) is defined as hardware companies generating recurring revenue through subscription models. This model marks a shift from traditional ownership, where customers purchase equipment outright, to a system where part of the price is bundled into a subscription. The updated methodology demonstrates that the barriers to entry for hardware companies have decreased, spurred by advancements in automation and a surge in demand for industrial machines. Investors are increasingly recognizing the value of HaaS companies, leading to a notable increase in revenue multiples compared to other frontier tech companies.