White Paper: EUCOS Cooling as a Service
- Guido Casarin
- Sep 1
- 12 min read
Updated: Sep 10
How to Transform HVAC System Costs from a Risk into a Competitive Advantage
Author: Guido Casarin, Co-Founder EUCOS Cooling as a Service
Date: September 1, 2025
Table of Contents
1. Introduction: Zero Upfront Costs, Zero On-site Emissions, Zero Worries
2. Analysis of the Traditional Model's (CapEx) Limitations
2.1 The Financial Risk: Temporal Disproportion and Unpredictability
2.2 The Technological Risk: Obsolescence and Energy Inefficiency
2.3 The Management Risk: Complexity and Distraction from the Core Business
2.4 The Environmental Risk: Impact and Regulatory Pressures
3. The New Paradigm: EUCOS Cooling as a Service (CaaS)
3.1 The Servitization Business Model
3.2 The EUCOS Cooling as a Service Business Model
3.3 A New Pact of Trust: The Alignment of Incentives
3.4 Market Analysis: The Opportunity in HVAC as a Service
3.5 Who We Address
4. The Architecture of the Model
4.1 The Operating Envelope: The Perimeter of Predictability
4.2 The Service Level Agreement: The Guarantee of the Outcome
4.3 Advanced Governance: The Intelligence that Prevents Problems
4.4 A Truly "All-Inclusive" Service: What the Fee Includes
4.5 Why Energy Remains with the Client
5. The Impact on Your Business: Financial, Environmental, and Operational
5.1 Financial Advantage
5.2 Environmental Advantage
5.3 Operational Advantage
5.4 The Global Vision: Alignment with the UN SDGs
6. Why EUCOS CaaS
6.1 An Innovation Rooted in Experience: Since 1903
7. Conclusion: Transforming Air Conditioning into an Advantage
1. Introduction: Zero Upfront Costs, Zero On-site Emissions, Zero Worries
The industrial and commercial HVAC (Heating, Ventilation, and Air Conditioning) sector is at a turning point. For decades the dominant paradigm for acquiring and managing systems has been based on a single model: direct ownership, with an initial capital expenditure (CapEx). While familiar, this approach exposes companies to a series of financial, operational, and technological risks that are increasingly unsustainable in an economic context characterized by volatility, rapid innovation, and growing regulatory pressure regarding environmental, social, and governance (ESG) criteria. Today, technological obsolescence, unpredictable maintenance costs, management complexity, and the energy inefficiency of aging assets are no longer simple cost items but genuine brakes on competitiveness.
In this scenario a new approach is forcefully emerging that, when applied to the HVAC sector, resolves these critical issues at their root: EUCOS Cooling as a Service (CaaS). With its three - dimensional approach - zero upfront costs, eliminating the need for initial investments with a fixed monthly fee; zero on-site emissions, thanks to 100% electric equipment that minimizes the ecological footprint; and zero worries, by simplifying operational management and freeing companies to innovate, EUCOS CaaS redefines climate control as a strategic service. Born from the consolidated experience of the EUCOS Group, with roots stretching back to 1903 in Udine, Italy, this vision transforms a burden into an opportunity, offering a solution that combines financial efficiency, environmental sustainability, and operational simplicity, with an eye on international scalability.
This white paper aims to provide an in-depth analysis of the traditional purchasing model's limitations and to present EUCOS CaaS as its logical and strategic evolution. Through a detailed analysis we will explore how transforming a system from an asset to be owned into a service to be used (a shift to the outcome economy) allows for the realignment of incentives between provider and client, frees up capital, guarantees performance, and accelerates the transition to sustainability. Finally, we will present the transformative vision of EUCOS, which, backed by its consolidated engineering experience, has developed a native digital web platform to translate this vision into a measurable competitive advantage for its clients.
2. Analysis of the Traditional Model's (CapEx) Limitations
The traditional purchasing model exposes a company to four fundamental areas of risk, often underestimated when calculating an asset's Total Cost of Ownership (TCO).
2.1 The Financial Risk: Temporal Disproportion and Unpredictability
The structural flaw of the CapEx model lies in a profound temporal asymmetry. The investment in an HVAC system is a multi-year financial commitment, intended to be amortized over a 7-10 year horizon. The manufacturer's warranty, however, covers a drastically shorter period, typically 12 or 24 months. At the end of this brief coverage window, the entire financial risk associated with breakdowns, component wear, and extraordinary repair costs is transferred entirely to the asset's owner. This variability makes long-term operational cost planning unreliable, exposing the balance sheet to "surprises" that can significantly impact liquidity and profitability, especially when a system failure causes a production stoppage.
2.2 The Technological Risk: Obsolescence and Energy Inefficiency
The curve of technological innovation in the HVAC sector is steeper today than ever before. Today's component technologies offer significantly superior performance, making new-generation systems more efficient. A company that purchases a system today is locked into a technology that ages faster than its amortization schedules. It thus finds itself bearing a double cost: not only the financial burden of a depreciating asset but also the operational cost of decreasing energy efficiency compared to emerging standards. The silent inefficiency of an aging system becomes a hidden and constant cost on the utility bill.
2.3 The Management Risk: Complexity and Distraction from the Core Business
Managing an HVAC infrastructure is a complex activity that requires specialized skills. It's not just about maintenance, but a whole set of time-consuming activities: scheduling technical services, procuring spare parts, managing administrative compliance (e.g., F-Gas verifications, energy efficiency reports, system logbooks, and professional licenses), audits, and software updates. For a non-specialized company these activities represent a managerial burden that drains precious time and resources away from the higher value-added activities that constitute its core business.
2.4 The Environmental Risk: Impact and Regulatory Pressures
The environmental impact of traditional HVAC systems goes beyond the use of refrigerants: the real hidden cost lies in their energy inefficiency. An unoptimized asset can increase energy consumption by 20-30% over time (IEA, 2024), translating into economic losses on utility bills and CO2 emissions that affect ESG balance sheets, challenging corporate sustainability goals. Regulations, such as the EU F-Gas Regulation, and growing stakeholder attention—from investors, clients, and boards of directors—demand proactive and documented management of the ecological footprint, a complex task that generates significant compliance costs. In the traditional purchasing model, this responsibility is fragmented: the manufacturer guarantees efficiency only at the point of sale, while the owner often lacks the tools, skills, or incentives to maintain it over time. In a market that demands environmental transparency, this strategic uncertainty directly damages the company's reputation, turning an environmental risk into a tangible business problem.
3. The New Paradigm: EUCOS Cooling as a Service (CaaS)
EUCOS CaaS responds to these limitations with a paradigm shift, transforming climate control from a product to be owned into a service to be used, founded on the outcome economy and the principle of servitization.
3.1 The Servitization Business Model
Servitization shifts the focus from owning an asset to guaranteeing a measurable outcome - the "useful cooling" or "guaranteed comfort" - freeing companies from the burden of ownership and allowing them to concentrate on their added value. EUCOS CaaS assumes complete management, offering a service that evolves with the client's needs.
3.2 The EUCOS Cooling as a Service Business Model
The following diagram illustrates the architecture of our operating model highlighting the flow of value between EUCOS, its strategic partners, and the end client. It is designed to absorb external complexity and deliver a simple and guaranteed result to the client.
Figure 1: EUCOS Cooling as a Service Business Model
3.3 A New Pact of Trust: The Alignment of Incentives
The EUCOS Cooling as a Service model shifts the center of gravity of responsibility. By retaining legal and technical ownership of the systems we assume the totality of the risks that previously fell on the client. This choice creates a powerful and virtuous alignment of incentives: if the system fails or is not efficient, we are the first to bear the economic cost. This drives us to select only the best technologies from premium brands in the sector, with a specific focus on very low GWP (Global Warming Potential) refrigerants to minimize environmental impact, to design for maximum reliability, and to invest in predictive monitoring platforms like EUCOS Field Sense. The asset's 'end-of-life' becomes our responsibility and opportunity, not a cost for the client or the community. We manage the entire lifecycle according to the principles of the circular economy, prioritizing reconditioning and reuse, and ensuring proper recycling of materials when necessary.
3.4 Market Analysis: The Opportunity in HVAC as a Service
The analysis of the HVAC sector reveals a structural and rapidly expanding opportunity. The global Total Addressable Market (TAM), valued at approximately 290 billion dollars in 2024, is projected to exceed 400 billion by 2030. Focusing on Europe, the outlook is equally promising: the continent’s total HVAC market, currently worth 68 billion dollars, is set to surpass 100 billion by 2030, driven by a compound annual growth rate (CAGR) above 6%. In this context, a convergence of regulatory trends—such as the EU F-Gas Regulation’s phase-down of HFC refrigerants—and technological advancements, including efficiency and smart technologies, is accelerating a paradigm shift. This shift moves away from traditional asset purchases (CapEx) toward servitization models like ‘Cooling as a Service’ (CaaS). Far from merely competing in the secondary services market, CaaS redefines the industry’s rules, transforming equipment sales into a service-based offering. As a result, the Serviceable Addressable Market (SAM) for CaaS in Europe is projected to reach 16-22 billion dollars by 2030—not as a mere fraction of the services segment, but as a strategic foothold to capture a significant share of the broader HVAC market.
3.5 Who We Address
EUCOS Cooling as a Service is designed for a wide range of companies facing the challenges of the traditional HVAC model and seeking a strategic alternative. We primarily target energy-intensive industries such as manufacturing, data centers, and logistics, where operational continuity and energy efficiency are critical, but also SMEs wishing to free up capital without sacrificing performance. We speak to decision-makers—CEOs, CFOs, and facility managers—who must balance financial pressures, ESG regulations, and management complexities. Our service adapts to entities with different needs: from large enterprises requiring international scalability, such as supermarket chains, to local businesses wanting to reduce operational risks without initial investments. With a customizable offering and continuous support, EUCOS CaaS presents itself as the ideal partner for those who see sustainability and flexibility as a competitive advantage.
4. The Architecture of the Model
The architecture of EUCOS Cooling as a Service (CaaS) gives substance to our three-dimensional vision, translating "zero upfront costs," "zero on-site emissions," and "zero worries" into an effective operational structure. Designed to tackle the challenges of the HVAC sector, it is based on three key elements: the Operating Envelope, the Service Level Agreement, and Advanced Governance. These pillars, developed based on the EUCOS Group's experience and our digital platform, ensure reliable performance, sustainability, and simplified management.
4.1 The Operating Envelope: The Perimeter of Predictability
At the heart of our fixed-fee model is the Operating Envelope (OE). It is a clear agreement that defines the system's "perimeter of use," based on the client's real needs: setpoints, operating hours, and design climate conditions. Its function is simple and powerful: within this perimeter, the fee does not change, guaranteeing absolute budget stability. Should business needs evolve, the OE adapts agilely through a Change Order mechanism, transforming the contract from a static constraint into a flexible tool that follows the company's growth.
4.2 The Service Level Agreement: The Guarantee of the Outcome
Our Service Level Agreement (SLA) is the formalization of our promise. Instead of time-limited warranties, we offer an ongoing commitment to performance, defining precise metrics for system availability (uptime) and intervention times in case of anomalies. Our SLA includes a service credit system that is automatically activated in case of deviations. This is a protective mechanism for the client and the most concrete proof of our aligned incentives: our profitability is directly dependent on your operational continuity.
4.3 Advanced Governance: The Intelligence that Prevents Problems
Our service is not passive, but proactive. Through the EUCOS Field Sense platform and IoT sensors, we exercise continuous governance over the system. Telemetry allows us to manage, not just monitor. We analyze trends and recognize deviations before they become failures, transforming maintenance from a reactive cost into a predictive activity. Through monthly reports and semi-annual reviews, this governance becomes a strategic dialogue with the client, ensuring the service is always optimized and aligned with their priorities.
4.4 A Truly "All-Inclusive" Service: What the Fee Includes
The EUCOS CaaS monthly fee is an "all-inclusive" formula that absorbs the entire operational, management, and risk lifecycle of the climate control infrastructure, guaranteeing the client absolute cost predictability. Included are all the elements that generate complexity and unforeseen costs in the traditional model: a Service Level Agreement (SLA) with guaranteed uptime and service credits, a warranty extension for the entire contract duration, and an All-Risk insurance policy. Furthermore, we take care of all operational management, from proactive maintenance to technical assistance, and we fulfill all legislative obligations, freeing the client from every worry. The only exclusions are strategic choices made for the client's benefit: the installation is quoted separately, offering the possibility of using one's own trusted installer; air filters (e.g., for rooftops) are based on consumption for fairness; electricity.
4.5 Why Energy Remains with the Client
The strategic decision to exclude electrical energy from the monthly fee offers the client a series of tangible advantages. This choice allows companies to leverage their own negotiating power with energy suppliers, capitalize on investments in self-production such as photovoltaics, and prepare for future models like Renewable Energy Communities. Furthermore, by maintaining control over their energy, businesses can access national regulatory incentives, such as Italy's 'white certificates' (Energy Efficiency Certificates, TEE), which reward energy savings. This separation ensures a simpler and more transparent CaaS service, based on a fixed and predictable fee that leaves you with full control of your energy strategy and us with the total responsibility for the equipment's performance.
5. The Impact on Your Business: Financial, Environmental, and Operational
EUCOS CaaS generates a transformative impact on three fundamental levels, reflecting our three-dimensional vision: 'zero upfront cost,' 'zero emissions,' and 'zero hassle.' This section explores how CaaS redefines value for customers, supported by the expertise of the EUCOS Group and our innovative digital platform that delivers tangible financial, environmental, and operational benefits.
5.1 Financial Advantage
The 'zero upfront cost' principle eliminates the need for initial capital expenditure (CapEx) by replacing the traditional purchase of equipment with an affordable fixed fee. This approach frees up financial resources, allowing companies to allocate capital toward strategic activities such as research, development, or expansion. The fixed fee, tailored to the client's needs, offers predictable financial planning and reduces exposure to unforeseen costs from breakdowns or unscheduled maintenance. Leveraging the EUCOS Group's expertise, this model transfers the financial risk to us, creating a sustainable alternative to the traditional model.
5.2 Environmental Advantage
With "zero on-site emissions," CaaS positions itself as a cutting-edge solution for sustainability. The use of 100% electric equipment, designed to minimize the ecological footprint, responds to growing regulatory pressures like the EU F-Gas Regulation and ESG standards. In selecting these technologies, we pay particular attention to using refrigerants with the lowest possible GWP value, further reducing the climate impact. This approach supports companies in achieving their social responsibility goals, an increasingly relevant factor for investors and consumers. Centralized management by EUCOS, including reconditioning and end-of-life of assets, promotes the principles of the circular economy, limiting waste and encouraging responsible use of resources.
5.3 Operational Advantage
The "zero worries" concept simplifies daily management, freeing companies from complex operational burdens. EUCOS CaaS assumes full responsibility for maintenance, regulatory compliance, and system monitoring, using our digital platform to automate processes and provide continuous support. This alleviates the administrative and technical load, allowing clients to focus on their core business without distractions. The service's customization, backed by the EUCOS Group's experience, adapts to different contexts, from data centers to large manufacturing plants, ensuring operational continuity.
5.4 The Global Vision: Alignment with the UN SDGs
Our commitment to sustainability extends beyond energy efficiency, strategically intersecting with multiple United Nations Sustainable Development Goals (SDGs). In addition to directly contributing to energy and climate objectives (SDG 7, 13) through the use of 100% electric, zero-emission equipment, our "as a Service" model acts as a catalyst for a more innovative and resilient industry (SDG 9) and for more responsible consumption and production (SDG 12). Our impact also extends to the urban and social fabric: by improving the energy efficiency of commercial and industrial buildings, we contribute to creating more sustainable cities and communities (SDG 11). Furthermore, by ensuring the stability and reliability of climate control in critical facilities such as hospitals and clinics, our service becomes a key enabler for the health and well-being (SDG 3) of patients and healthcare staff. Finally, our entire operating ecosystem, based on collaboration between financial, technological, and maintenance partners, fully embodies the spirit of partnerships for the goals (SDG 17), demonstrating that economic growth can and must be aligned with real social and environmental progress.
6. Why EUCOS CaaS
Compared to direct competitors like traditional HVAC financial leasing and pure rentals (including short-term ones), EUCOS CaaS distinguishes itself with its holistic CaaS approach, which integrates ownership, customized service, and sustainability. Financial leases focus on financing the asset, delegating operational management to the client, while pure rentals, often designed for temporary or emergency needs, rely on essential solutions optimized for multi-site use. EUCOS CaaS, in contrast, assumes full responsibility for management, proactive maintenance, and technological updates, ensuring high uptime, custom-tailored solutions, and zero on-site emissions, consolidating itself as an innovative leader in the European market.
6.1 An Innovation Rooted in Experience: Since 1903
Choosing EUCOS CaaS means trusting a journey that has its roots in 1903, when the EUCOS Group began operating in Udine, Italy, contributing to the evolution of the engineering sector with an approach attentive to the needs of the time. This long history is a wealth of knowledge that has allowed us to better understand the needs of companies and to build solid solutions over the years. Our Cooling as a Service model, with its fixed fee, use of low-impact technologies, and a supporting digital platform, is born from this accumulated experience. Through technological and regulatory changes, we have refined our way of working, developing a service that aims to offer a reliable and seamless experience. The digital platform, integrated with our tradition, unites stability and modernity, providing practical and predictable support. Opting for EUCOS CaaS therefore means relying on a partner with a solid historical foundation, who proposes a path toward more sustainable climate control with a service designed to reduce complexity, accompanying companies with serenity and continuity.
7. Conclusion: Transforming Air Conditioning into an Advantage
The traditional HVAC purchasing model shows clear limits: hard-to-predict costs, rapid technological updates, managerial burdens, and growing ESG demands that stifle competitiveness. EUCOS Cooling as a Service offers a strategic alternative: "zero upfront costs" frees up capital to invest in the future, "zero on-site emissions" protects the environment and strengthens reputation, and "zero worries" eliminates operational complications. Supported by the legacy of the EUCOS Group since 1903 and a native digital end-to-end platform, this vision transforms air conditioning from a cost to a lever for growth.
Transform your HVAC system from a cost center to a competitive advantage.
Contact us for a personalized analysis of your Total Cost of Ownership and discover how much capital you can free up with EUCOS CaaS, redesigning your sustainable growth with a trusted partner.
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