GM Goes "SAAS" For Long-Term Revenues From Car Owners

"SAAS" is "Software As A Service".

In the good old days, you bought (e.g.) payroll software, installed it on your computer, and paid your employees, using a bunch of key-strokes to get the job done.

That was then.

Now, you rent the payroll software.  You still put in the keystrokes and pay your people, but you pay for the service annually.  You do not pay "once and done" any more.

That's where GM has been headed for the last 10 years or so and Mary Barra is certain that you will be 'renting' the software conveniences, assuring GM of a long-term revenue stream from the car you bought--even after you trade it in.  It's not "once and done."

 ...GM has said software and services could generate as much as $25 billion in revenue by 2030. The automaker recently hired Mike Abbott, who led cloud services at Apple Inc., to be its executive vice president of software in charge of a reorganized team focused on information and digital technology, software-defined vehicle and operating systems, and digital business....

Recall that John Deere is in a dogfight with owners of its newer-model ag equipment over "who gets to fix this" issues arising from software on the equipment.  The farmers maintain that they bought the whole damn thing and are entitled to repair it any place they want.  Deere says 'Nope.  It's our software, and only we can fix it--for a fee.  Too bad if you think the fee is exorbitant, Farmer Brown!'

That little red-highlighted phrase above?  That's GM's way to tell you that you will be paying--a lot--for that car, long after  you bought it.

Cheerio!!