As our world grows increasingly reliant on tech, we have a growing need for on-demand services. Coming to the rescue are cloud providers that have made technology ubiquitous, scalable, and flexible. The as-a-service or subscription model delivers the products, tools, and technology to users over the network.
In this picture, we are witnessing the rise of XaaS (Everything-as-a-Service), and it is only apparent considering the post-pandemic world. As we moved towards a remote working environment, IT companies realized their inadequate infrastructure.
Transitioning From SaaS to XaaS
We have heard about SaaS and know it has been around here for a long time. SaaS took up the cloud computing process by many notches. It created a connection between service providers and their users.
Now, as we leverage more from this power of the cloud, it is high time that we upgrade to a more robust model. XaaS or Everything-as-a-Service is the answer. XaaS eases the process of products and services being digitally connected.
Another business advantage of adopting XaaS is its characteristics such as greater flexibility, more scalability, and agility compared to existing or traditional infrastructure.
What is servitization in XaaS structure and why do you need to know about that?
It is a technique used to integrate products and services into a single package, and the customers receive it as a service instead of being sold like a product.
XaaS takes any IT function or business process and adds multiple service layers. It transforms it into a product with services. This combination of products and services allows organizations to offer more excellent value to their customers instead of lone offerings every time they purchase.
Grey areas of XaaS
It is also essential that we consider the challenges with XaaS. With the increasing evolution of cloud-based providers, there is an imminent need to meet the competitive, legal, and business requirements.
Moreover, since it is globally available over the network, we have to consider the local protocols as well. The continuous demand for resources and services complicates the process.
A few issues regarding XaaS are as follows:
- The traditional operating model has to be transformed to realize a connected enterprise. It is only then possible to offer a great customer experience.
- Another issue is collecting revenue with a profitable margin. XaaS requires competitive pricing and agility for the customer base.
- The cost of delivery to the customer has to be adjusted with time to stay relevant in the market amidst competition.
Real-world use cases
XaaS makes it possible to convert buyers into long-term subscribers. XaaS can offer add-on benefits to the customers. Famous examples include Spotify (which removes ads on subscriptions), Netflix, etc.
General Motors designed a data-as-a-service platform on top of their private cloud called the Maxis solution. Many strategies of business processes are supported through it, such as pricing, sales leads, sales forecasting, and marketing.
The realty company Cushman & Wakefield performed trials using XaaS and brought together the core teams of IT and business.
Advantages of XaaS: Where and how to put XaaS to use?
The significant advantages of XaaS are discussed below.
A company can hold the owner of its products and remove or decommission it whenever not required for particular users.
Through XaaS, we can cut down on costs and simplify the IT deployments.
When you reduce the dependency on on-premise IT, you reduce the cost of equipment space, power, and operational or capital expenses. Therefore, generating higher revenue.
When your services are available on the network, the IT team has the time to improve and work upon the business efficiency.
Adopting XaaS also improves customer satisfaction and the potential to cater to their needs since most of the technology is offered through a single XaaS provider. They don't have to look for each service separately.
XaaS designs a greater control for owners, where a subscription-based model doesn't impact business for a long duration. Get paid on a monthly or yearly basis and avoid long contracts. Additionally, the ease of cancellation simplifies management.
Disadvantages of XaaS: Areas where you'll find problems for operating in XaaS
With everything technical, XaaS also opens to certain disadvantages that business owners should consider beforehand.
- Downtime: Nobody can guarantee a stable internet connection forever. XaaS providers might struggle to keep up with the demands during a network outage. The issues can be about the reliability of the internet, its resilience, and the ease of bringing it up and managing the infrastructure resources. One can guarantee services with well-defined SLAs.
- Performance: With the rising popularity of XaaS, other factors are rising as well, including bandwidth, data storage, retrieval techniques, latency, etc. These factors impact the performance of the system. When too many customers use the same resources, it slows down the system. The applications running in the virtualized environment can also be impacted. Also, there can be issues regarding the integration, management, and security of multiple cloud services.
- Shortage of Experienced Professionals: IT staff is relieved from the day-to-day operational issues using XaaS. But another issue is the lack of ability to troubleshoot the issue if any arise. The constant need to update oneself with cloud technology can prove fatal for efficient services. The cost involved in maintaining or resolving the high-performance network can also increase.
One also needs to consider that competitors have a passage to the vulnerable infrastructure. A cloud-based developer must ensure robust IP strategies and tools to protect their assets.
XaaS is the umbrella for everything that can be offered as a service over the network. It can be software, infrastructure, disaster recovery, storage, platform, IT, etc. Every business has unique requirements and, therefore, different implementation techniques of XaaS.
Therefore, one should look for an expert XaaS developer company that can transform your business's digital presence. TechAhead is a globally recognized software development company that has served international clients like Starbucks, Disney, Audi, etc.
We have over 13 years of experience delivering solutions to businesses from all major industries. Our team is capable of handling your XaaS-related targets and offers valued consultancy. We are customer-centric, and no matter what troubles you encounter, TechAhead always has your back!