In the PHM literature a majority of the research deals with solving technically related issues and there is a lack of material addressing the business benefits of such technology. Although PHM has the potential of creating a true paradigm shift, little consideration has been given to PHM being used for revenue generation other than the frequently cited case of maintenance cost reductions and certainly not as a new and powerful business model enabler. The thesis offered here is that a Product-Service System (PSS), which offers a bundle of products and services where emphasis shifts from selling a product to selling the use of a product, is the true business reason for adopting PHM. This paper presents an approach and the tools developed to support a cost/benefit analysis of deploying PHM technologies on a machine tool, where PHM is being used to support a PSS business model. The paper also introduces a model which could frame future research direction, exploring the further benefits PHM technology could bring to a business and the changes necessary to realise those benefits.