Shifting IT Procurement: Enterprises Embrace OpEx and Subscription Models
Gone are the days of hefty upfront costs for IT assets. Many companies now prioritize flexibility and affordability, driving a significant shift towards OpEx- (operational expenditure) and subscription-based procurement models.
Arrow Electronics collaborated with NVIDIA to deliver an edge AI Platform with an as-a-service business model in response to this trend. This offering combines the NVIDIA IGX industrial- and medical-grade edge platforms with the recently announced NVIDIA AI Enterprise Edge for IGX. The edge AI Platform-as-a-Service (PaaS) program from Arrow aligns business models across the supply chain and will accelerate the adoption and deployment of edge AI platforms in both the industrial and medical markets.
Kaliber Labs, a company developing AI-powered software applications for orthopedic surgery, exemplifies this shift. Led by Ray Rahman, Kaliber uses NVIDIA technology to build its solutions. However, the rapid development pace demands significant capital and skilled personnel. To address these challenges, Kaliber adopted the NVIDIA Holoscan and NVIDIA IGX platforms to accelerate product development and efficiently utilize engineering resources. The final challenge was deploying the Kaliber solutions to capital-constrained customers like ambulatory surgery centers and hospital operating rooms. For this, Ray sought an OpEx model that minimized financial risk and helped ensure his team’s focus on innovation. Arrow’s edge AI PaaS offering was just what Kaliber needed to accelerate the adoption of the necessary edge AI infrastructure while allowing the team to focus on AI-powered software applications.
A Streamlined, Private-Labeled OpEx Program
To power its edge AI PaaS program, Arrow collaborated with NVIDIA to integrate the NVIDIA IGX platform and NVIDIA AI Enterprise to facilitate rapid adoption in the industrial and medical application spaces. Combining the expertise of Arrow Capital Solutions for financing, Arrow’s intelligent solutions business for its lifecycle management solutions, and NVIDIA’s edge AI expertise, Arrow’s team quickly created and validated the edge AI PaaS program, providing a solution to one of the key barriers to AI adoption at the edge.
Arrow crafted a custom OpEx offering delivered as a subscription for medical-edge AI computing solutions like NVIDIA IGX, eliminating significant upfront investments for Kaliber’s customers. The program also extended Kaliber’s credit capacity and eliminated in-house component acquisition costs. Arrow’s lifecycle management services include design, supply chain, integration, and fulfillment. The end-to-end program uses a private label experience featuring only Kaliber’s brand, fostering trust and loyalty with end-user customers.
Louis Centolella III, general manager of Arrow Capital Solutions in North America, explains, “By eliminating the upfront capital expenditure, we are making it easier for end users to access Kaliber’s and NVIDIA’s technologies. Arrow provides the financing and lifecycle management engine, keeping the sales momentum through the edge AI PaaS program. Our private label approach helps ensure Kaliber retains control while offering a streamlined experience for its customers.”
The rapid adoption of AI has accelerated the shift to software-defined products and software-as-a-service business models within the industrial and medical industries. Arrow’s edge AI PaaS program will allow customers to adopt and deploy NVIDIA platforms such as Holoscan and IGX in a way that’s aligned with their SaaS-based business models, enhancing their capabilities while reducing costs.
-David Niewolny, director of business development at NVIDIA
Kaliber Leverages Edge AI PaaS to Revolutionize Arthroscopic Surgery
With support from Arrow, Kaliber Labs introduced the innovative edge AI PaaS program. The new business model, developed in collaboration with Arrow, is a crucial component of Kaliber’s go-to-market strategy. It offers a flexible, subscription-based OpEx solution that removes the burden of upfront investments for end-user customers.
Everyone benefits from the edge AI PaaS program. Kaliber minimizes financial risk, maximizes credit capacity, and keeps its team focused on cutting-edge innovation. End users gain a simplified, multiyear OpEx solution with bundled NVIDIA products and services. The private-label solution streamlines contract management without additional third-party financing agreements, reducing friction and complexity.
The collaboration highlights the value Arrow brings to the table through its financing and lifecycle management expertise, helping ensure a seamless private label experience. The edge AI PaaS program enables Kaliber to recognize revenue and accelerate future cash flows. It also mitigates exposure to collection risks and simplifies financial management. Kaliber’s team can dedicate itself to developing the next generation of solutions, leaving supply chain, integration, and fulfillment to Arrow.
Ray Rahman, chief executive officer of Kaliber Labs, says, “Kaliber Labs harnesses the pioneering spirit of innovation by integrating its state-of-the-art surgical AI solutions with Nvidia’s IGX Edge and Arrow’s edge AI PaaS program. This collaboration showcases a seamless fusion of cutting-edge technology and strategic business acumen, paving the way for a future where precision and intelligence lead healthcare transformation.”
Kaliber Labs is building an end-to-end suite of AI-powered software solutions to meet the needs of patients, surgeons, and administrators in arthroscopic surgery. Kaliber Labs aims to develop technology that supports more accurate, consistent, and efficient surgical performance, unifies and streamlines the surgical journey, and facilitates personalized, evidence-based care.
Kaliber KalChat revolutionizes patient engagement by transforming complex medical data into accessible patient interactions. As an active participant in the healthcare journey, KalChat is designed to craft tailored responses utilizing patients’ operation notes, discharge orders, electronic medical records, and data gleaned from our KalGraph intra-operative recognition capability. This capability fosters personalized interactive patient experiences without taking time away from busy surgical staff. Moreover, through this dynamic dialogue, KalChat can gather patient-specific information to construct comprehensive patient-reported outcome measure profiles.
Arrow Capital Solutions is a wholly owned subsidiary of Arrow Electronics, Inc., a global IT distributor, specializing in buy-now, pay-later IT financing solutions for customers of all sizes, including commercial, non-profit, educational, and government entities.
Arrow Capital Solutions helps customers acquire critical IT products to support their businesses by creating the optimal financing solution. Deals range from $5K to multimillion-dollar transactions over a multiyear period. Customize your payment schedule through monthly, quarterly, annual, or seasonal payment frequencies, along with first payment deferrals.
Arrow’s Intelligent Solutions business fuels digital transformation in the age of innovation. Through its comprehensive services portfolio and global network of technology partners, Arrow helps customers simplify their technology lifecycle and get products to market efficiently.
