The "break-even on initial install, make profit on recurring revenue" model is common in a lot of industries.

I've worked for engineering service companies where they'll take on a design at minimal profit, in order to secure the manufacturing contract that's worth far more. Or a medical device company that would provide the instrument (normally sold for around $750k) at cost, in exchange for a lucrative supplies & consumables contract that would be needed for over a decade of operation.

I honestly think there's more money to be made in services, generally speaking, than in manufacturing.