Everything as a Service: 5 Things to Know About the XaaS Business Model
From software as a service (SaaS) to disaster recovery as a service (DraaS), it seems like everything is getting an “aaS” makeover at the moment. Even cybercriminals are getting on board with Ransomware as a Service (RaaS) and Crime as a Service (CaaS)!
The proliferation of cloud-based offerings for a large number of solutions, tools, and technologies by vendors to clients as a service is known as XaaS – “Everything as a Service.” This model is essentially the delivery of everything or anything as a service, typically over a network such as the internet instead of being provided physically or onsite.
To ensure you stay on top of the trends that matter most today, keep the following XaaS facts in mind:
1. XaaS supports agility
One of the standout features of the XaaS model is that it allows both providers and their customers to be more flexible, agile, and adaptable.
Providers can quickly pivot their services to meet market demands. Meanwhile, customers can pick and choose their cloud-based XaaS services as needed.
In this way, XaaS also democratizes innovation, delivering enterprise-level benefits to small businesses and even sole traders who can pool XaaS resources.
2. XaaS should always deliver benefits for customers and providers
The ideal XaaS model should add so much value to customers that they’re happy to pay the regular operation cost involved.
Businesses operating on the XaaS model must focus on making that value clear to customers. Otherwise, they risk losing business from people who assume the XaaS model is little more than a cash grab.
By replacing costly one-off capital expenditures with a subscription model that comes at a lower monthly fee, businesses can offer cost-effective XaaS solutions that work for them and their customers.
3. XaaS model can improve cybersecurity
The beauty of the XaaS model is that, regardless of the product or service in question, its underlying infrastructure will be kept safe and up-to-date by the provider. Updates and patches can be deployed automatically, giving users a seamless and highly secure experience.
4. XaaS may eliminate the problems with legacy software
Since updates are so easy to roll out, XaaS users never have to worry about being lumped with legacy software. Instead, if the provider decides to overhaul their offering, the changes will be rolled out to all users. Since changes emerge gradually, it’s generally also easier to keep staff up-to-date in their understanding of the systems.
5. XaaS relies heavily on internet connectivity
In most cases, if the internet goes down, Xaas goes down. In other words, internet disruptions can have an even more dire effect on businesses if they operate exclusively with XaaS providers.
For example, a company that uses purchased software stored on its devices rather than in the cloud may be able to maintain some level of functionality during a drop-out.
However, a competitor operating via cloud-based software would be stuck completely until the connectivity issue was resolved.
6. XaaS may improve business model longevity
Like humans, businesses have lifespans. Unlike humans, however, business lifespans have been shrinking over the last few years. For big companies, researchers at McKinsey found the average lifespan has dropped from 61 years in the mid-1950s to just 18 years in the 2020s.
Small business lifespans are even shorter, with half of all small enterprises folding within five years. In the rapidly developing digital era, XaaS offers a new service delivery model that may help businesses of all sizes live longer and more fulfilling lives.
In Conclusion
The XaaS model is here to stay, at least for the foreseeable future. So, keep these XaaS facts in mind to avoid the pitfalls and make the most of this service delivery style.
