2020-8-11 STEAM-AS-A-SERVICE LOGO_blue-01

The all-in-one steam solution for the tech age.

Industry Leaders
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Years of Steam Experience
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Simple Monthly Payment
10

Steam-as-a-Service (SaaS) delivers state-of-the-art equipment, next-gen IoT capabilities, and onsite operation and maintenance for one monthly payment. You’re guaranteed top performance and efficiency for your steam generation system with no risk.

It’s a new way to think (a lot less) about steam. 

WHY SaaS?

Zero Upfront Capital Required

Upgrade and install a top-of-the-line steam solution at no upfront cost. All engineering, design, and permits are rolled up in the total project cost and financed over the life of the contract.

Reliability & Peace of Mind

Shift the risk from your balance sheet to ours and focus on your core business. The modular system pairs with OEM support and expert operation ensures your system stays in optimal condition.

Cost Savings

The modular system provides optimum efficiency for cost savings from year one. Demand tracking sensors turn the boilers ON and OFF as needed to reduce unnecessary costs.

Safety & Sustainability at the Core

Lower emissions and conserved resources — it’s better for the planet and better for your enterprise. "Safer by design" high-efficiency boilers and on-demand technology ensure that you are only producing steam when you need it.

Modular, IoT Connected Technology

The best available technology provides unparalleled safety, reliability, and efficiency. IoT keeps a watchful eye on your system and uses trending data to keep boilers tuned for optimal efficiency.

Best in Class Partners

Three global leaders in steam bring more than 300 years of industry experience to this monumental alliance to offer the best steam support available.

Guaranteed Performance & Efficiency

Enjoy insurance-backed guarantees for performance, reliability, and efficiency. Steam is guaranteed without worrying about liability risks, compliance issues, or equipment failures.

Continuity of Employment

We invest in your boiler technicians’ future to further their steam industry career development. They’ll receive world-class training and tools from Armstrong Services to improve boiler operations.

Check out our SaaS cover feature in Today's Boiler!

SaaS ALLIANCE

Implementation & Maintenance

Armstrong Services manages the on-the-ground implementation of SaaS by assessing steam needs, auditing existing systems, designing new systems, and overseeing onsite operations and maintenance. 

Modular, On-Demand Steam Boilers

As a global leader in safe, reliable, and efficient boiler technology, Miura provides SaaS customers with modular, on-demand steam boiler equipment, state-of-the-art monitoring systems, and maintenance programs.

Equipment Insurance & Engineering

As a pioneer in boiler safety, Hartford Steam Boiler (HSB) administers asset financing, insurance, and inspections for SaaS and oversees guarantees on performance, uptime, ROI, and efficiency. 

SaaS PROCESS

Initial Implementation

one

System Assessment

We'll analyze your steam challenges and building layout.

two

Letter of Intent

The SaaS agreement is proposed to work best with your facility's needs.

three

Engineering & Design

Experts will prepare your infrastructure for success.

four

Installation

Steam equipment is installed in your facility per design.

Continuous Operation

five

Operation

Armstrong Services works in daily boiler operations and capabilities.

six

Maintenance

OEM Service maintains boilers and utilizes intuitive IoT for prevention.

seven

Continual Improvement

As needs change, we'll make improvements for efficiency.

eight

Output Guarantee

Quality steam output is guaranteed or we'll pay lost production time.

Ready to simplify steam generation?

SaaS FAQ

Overview | Eligibility & Scope

Greater than 1,500 HP New Miura Installation or a smaller New Miura Installation PLUS additional equipment for O&M (i.e. chillers, air compressors, etc.). Basically, we need to be able to justify at least 40 hours/week of operator technician time per site. The 1,500HP requirement can also be met if broken up into multiple New Miura Installations within close proximity that will go online at the same time (ex. three hospitals belonging to the same hospital chain within 100 miles of each other, all with 400-600HP steam plants).

15 years. The standard contract is written around 15 years; however, we will consider contracts ranging from 5-25 years to accommodate specific customer needs.

The standard contract and offering is flexible, and designed to accommodate varying steam loads ranging from ZERO-to-FULL capacity. The pricing model accommodates and remains valid for a plant that is running wide open at 100% capacity or is shut down for a month(s) with no steam load. Of course, we must remain onsite to “keep the lights on,” and be ready to operate when load returns.

Yes. We are planning to incorporate a clause into the Energy Services Agreement (ESA) that, in most cases, would make it very simple for the customer to add or remove a boiler(s) to/from their SaaS operation with a simple and preestablished contract adjustment. Of course, there would need to be physical space available to add boilers, should they wish to expand.

 

This is one of the primary benefits of using Miura’s modular design for the SaaS offering. This model will make it a very scalable solution for district energy plants, central steam distribution, and economic development projects.

Yes. The Alliance is willing to take over operation and maintenance for existing infrastructure in addition to the new Miura installation. Existing boilers and/or ancillaries can become part of the scope. Guarantees around performance, reliability, and efficiency for the existing infrastructure may or may not be provided — this will be determined on a case-by-case basis.

Yes. We can incorporate new buildings and/or major upgrades to existing facilities into the SaaS offering and contract. This will be amortized into the project, and the customer will not be required to provide any upfront capital.

We are promoting SaaS with performance, reliability, and efficiency guarantees as part of the standard offering — these are included in the package. We are also building them into all initial pricing proposals. This remains the suggested approach.

In practice, every project will be somewhat different in this regard and HSB will adjust the guarantees and pricing based upon the customer’s needs and operations. For instance, a hospital may primarily care about reliability and steam quality, but not as much about efficiency; so perhaps we remove coverage for efficiency to meet their price target (there is a cost associated with each item being insured). In addition, some customers may want to add additional guarantees for pain points they are having, such as condensate return percentage, and HSB is willing to add the specific KPIs and guarantees that each customer may desire.

SaaS is NOT limited to just steam systems. We will include financing, design, installation, and O&M for other equipment as part of SaaS contracts. Any equipment typically found in a Central Utility Plant (CUP) can be included. Armstrong International’s service team has decades of experience operating and maintaining a vast range of equipment — steam generation, hot water generation, chillers, cooling towers, air compressors, refrigeration, electrical generation, water/waste-water systems, nitrogen systems, etc. Including these items when able, and expanding the scope of the SaaS model, will make the return on investment more attractive to the customer and make it more efficient to maintain operators onsite. In addition, HSB is building out a robust financing model for a widespread “Equipment-as-a-Service” offering.

Financial Considerations

Recent events and the impact on the economy have caused a global tightening of belts. The SaaS offering will provide customers access to the equipment and technology that, just a few months ago, they might have considered purchasing, but at no upfront cost.

The SaaS solution is not classified as a lease contract, but as a service contract. Which means that costly equipment does not have to be active on a customer’s balance sheet — SaaS moves costs from Capital Expenditure to Operating Expenditure. Which has significant implications for taxes, liquidity, borrowing capabilities, and overall company valuation.

SaaS structuring, in accordance with IFRS, provides an off-balance sheet solution as achieved by one party (The Alliance) providing a bundled offer that incorporates the financing element. 

If a customer wants to self-finance, this can easily be removed from the offering. All other services and benefits from SaaS can still be provided.

The Alliance strives to provide financing at a very competitive rate and this is a primary driver of the offering. Industry regularly fails to invest in the best-available equipment or continues to operate steam infrastructure well beyond its cost-effective lifecycle. Steam infrastructure is often pitted against things like production equipment or new medical equipment when competing for capital; and steam infrastructure typically ends up at the bottom of the list. SaaS, and the financing that is part of the solution, can solve this natural tendency.

Workforce

The SaaS alliance is deeply committed to continuity of employment for our customers and their existing workforce. Armstrong, the service arm of the partnership, typically hires most O&M staffing from a customer’s existing team.

When taking over operations and maintenance at a site, Armstrong will initially look to existing staff to fill the new positions. In some situations, customers may prefer to retain and reassign existing staff to other critical needs within the plant and ask Armstrong instead to bring in external resources. The alliance can accommodate either option, based on what is best for the customer and their existing employees. Of course, all operator technicians will need to have the required capabilities and interest and be willing to participate in additional training.

In addition, joining the SaaS team will provide individuals expanded career development opportunities nationwide and, in many cases, enhancements in pay and benefits. We are not here to “put people out of work”. This is a core principal in making SaaS a sustainable and widely accepted business model and a win-win for ALL sides.

In select cases where the new technology may require fewer boiler operators (e.g. a switch from a coal-fired boiler to a Miura installation), the Alliance will first look to fill the open positions with existing staff, and then will support solutions for remaining staff such as:

  • Training and reassignment within customer’s operations
  • Early retirement incentives when/if applicable
  • Opportunities within the SaaS alliance at other facilities

System Details | Consumables

This could be switched in either direction with a relatively simple contract amendment.

However, the SPC will not be “selling” the raw materials, as in many markets natural gas and/or electricity are regulated industries. Rather, the SPC will be helping to negotiate the rates, and will process the monthly payments on behalf of the customer for a small processing fee (1-2%).