Yann Toutant on the future of as-a-service in equipment finance in new podcast episode

Hosted by Richard O’Donohue, the conversation provides a refreshing and pragmatic update on where these business models stand today, and where they’re heading.

From hype to reality: is as-a-service still relevant?

Once the hot topic at every industry conference, as-a-service has lately been overshadowed by the buzz around AI. But, as Yann Toutant points out, this shift in spotlight doesn’t mean the concept has faded, it’s just matured. “As-a-service is still very much active,” Toutant explains. “But the definition varies widely, and it’s less flashy now because we’re finally getting into the operational, value-creating stage.”

Black Winch, the company Toutant co-founded, positions itself as the “world’s exclusive authority in product-as-a-service models.” Their core mission is helping manufacturers and distributors shift from traditional product sales to recurring revenue models, through consulting, implementation, and scaling.

Defining the as-a-service ladder

Toutant breaks down as-a-service into four clear levels:

1. Pure financing – Traditional ownership through payment plans.
2. Operational leasing – Fixed monthly payments with some service bundling.
3. Flexible service contracts – Subscription-like models with opt-out flexibility.
4. Pay-per-use (outcome-based models) – Payment based on actual usage or delivered results.

The most advanced level – pay-per-use – is gaining traction, especially in sectors like healthcare and manufacturing. Toutant gives a fascinating case study from the glass bottle industry, where equipment traditionally sold outright is now priced per bottle inspected, with added value shared between supplier and user based on reduced waste.

Demand, challenges, and a 30% reality check

One key insight: despite the enthusiasm of a few years ago, only about 30% of a typical business is likely to transition to as-a-service models. This is often limited to specific product lines or customer relationships. Full-scale transformation is rare unless the company starts from scratch with a subscription-first mindset.

The main obstacle? Commitment. Toutant is clear that these transitions require a 3–5-year vision, and many firms – especially those under private equity ownership – struggle to maintain that long-term focus due to short-term performance pressures.

Finance industry relevance: far from over

For asset finance professionals, this episode is essential listening. Far from sidelining the traditional finance sector, as-a-service opens up new roles for funders. As Toutant explains, these models are increasingly being structured with leasing-like guarantees and minimum usage thresholds, making them fundable and attractive to financial institutions.

Moreover, collaboration is key. Black Winch recently entered a partnership with BearingPoint to pair their operational expertise with BearingPoint’s change management capabilities. As Toutant puts it, “Your AI or digital transformation will never work without people. The same applies here.”

A future built on circularity and raw materials

Looking ahead, Toutant sees a convergence between as-a-service and the circular economy. As raw material prices rise, citing copper as a striking example, manufacturers will have a compelling reason to retain ownership of the materials embedded in their products. This means more products leased, refurbished, and reused, creating new asset classes and risks that finance providers must be ready to manage.

“Funders need to move from just asset management to raw materials management,” he explains. “This is where the industry is headed.”

Final takeaway

As-a-service isn’t gone; it’s growing up. The transition may be slower and more complex than initially expected, but the long-term business case remains strong. Whether you’re a funder, manufacturer, or tech provider, this episode offers a nuanced, realistic look at how the industry can evolve with flexibility, foresight, and partnerships.

Listen now at https://finance-connect.com/european-equipment-finance-podcast/ and also available on Apple Podcasts, Spotify, YouTube, and Amazon.