SaaS, PaaS, IaaS... you may have come across one or more of these terms in business, but what do they mean? The concept of "as a Service" has been around for quite some time and is gaining more traction as a method for delivering just about anything. Businesses have constantly been looking for ways to reduce hosting fees and eliminate management of on-site servers which “as a Service” models do. The "as a Service" models have accelerated in recent years due to the expansion of devices that are able to connect to the internet and the rise of cloud computing.
"As a Service” began with Software as a Service (SaaS), which is when a third-party business hosts applications over the internet and sells it as a service, such as Google Apps, Dropbox, MailChimp, etc. From that sprung Infrastructure-as-a-Service, Platform-as-a-Service, and many others. Most recently, X-as-a-Service (XaaS) aka ‘Everything as a Service’ has grown in popularity due to the increase in remote workers. What does it mean to have everything as a service and how will it affect your business? We’ve got the details below!
What Is XaaS?
XaaS is a consumption-based model where you can offer products, tools, and capabilities that are delivered to users as services via the internet. Ultimately, XaaS represents the wide-ranging collection of services and applications users can access on-demand via the internet.
Traditionally, hardware, software, and services were all sold separately. XaaS solutions combine those services into a single offering for your customers. Instead of requiring that your products be purchased or licensed upfront, you provide it in exchange for a pay-as-you-go fee.
XaaS examples are Healthcare as a Service, Transportation as a Service such as rideshares like Uber and Lyft, and Digital Experience as a Service (any digital interface that allows people to interact with companies). Instead of having business divisions operating independently, XaaS enables organizations to set up mass-market solutions designed to satisfy the needs of many. These horizontal solutions can be used by different departments with different end goals and needs.
Benefits of XaaS
By using XaaS, you can open new revenue streams while improving operational efficiencies and customer relationships. With quick access to basically anything over the web, Everything-as-a-Service can reduce time from your day-to-day workload. It often comes at an affordable price as well. There is no need to purchase and deploy heavy software or hardware because in XaaS you can maintain and build your own platforms of development. Specifically, B2B businesses are finding success due to being able to move beyond the initial product purchase and generate continuous revenue from their products or services.
Other benefits include:
Enhanced IT agility and usability
Accessibility ease
Flexibility
On-the-fly scalability
Higher ROI
Speed
Limited downtimes
Expanded productivity
Pitfalls of XaaS
Some companies have been reluctant to adopt the XaaS model. When your business, vendors, partners, and consumers are all accessing data in the cloud, cybersecurity concerns are common. Another pitfall is connectivity. If your internet or XaaS server goes down, so do your productivity and sales.
Bandwidth, data storage, and system speeds are other common questions. With everyone using the same resources, it can cause massive system slowdowns. You may also have less visibility and control over your XaaS provider’s infrastructure and your telecom expenses. With less visibility, you risk overspending, reductions in ROI, and a significant impact on the bottom line of income statements.
Related cons:
Less visibility into service provider’s IT infrastructure
Less visibility into telecom expenses
XaaS service provider discontinuing the service, becoming unavailable, or altering a specific feature
Service outages
Security mishaps
Hidden costs (integration, management, security, and handling large volumes of data)
Potential service provider or vendor lock-in
The Future of XaaS
Technology now allows companies from almost any industry to switch to a XaaS model. Large companies such as Adobe, LinkedIn, and Salesforce have already successfully implemented the XaaS model by enabling customers to use software applications in the cloud for multiple years.
The future of more businesses moving into a XaaS model is promising. Gartner Inc. released a survey stating that the global XaaS economy will grow 38.22% from 2019 to 2024. Gartner also projects that the market size and growth of the cloud services industry (XaaS) will extend nearly three times the growth of other IT services which is a staggering $331 billion.
If you’re looking to adopt a new cloud-based service model, you need a partner to help you with the complex and sophisticated digital technology that comes with it. eSquared is that partner! Most of the cons related to XaaS can be offset by skill, IT management, and telecom expense management.
How eSquared Can Help
Our billing analysts at eSquared can provide visibility across all telecom services. We can provide detailed reporting, tackle discrepancies, and optimize billing for the lowest prices. Start saving over 20% on your telecom bills and only receive one concise invoice.
Our expert help desk team and fully managed services can ease your mind when it comes to data control, cybersecurity, and software concerns. It’s rare for internal IT teams to have the requisite skills and bandwidth to smoothly implement XaaS or any ‘as a Service’ solution. eSquared has the cross-functional support and expert capabilities to execute a turnkey solution through:
Procuring industry-specific software
Smooth software deployment
Connected devices and accessories
Guaranteed asset management from warehouse to shipping
Failproof Wireline & Wireless services, including high-speed 5G internet
Watchdog data analytics
Telecom Expense Management
Mobile Device Management
Award-Winning 24/7 help desk team
Positive consumer experiences
eSquared can assist software companies needing assistance deploying by providing a valuable turnkey solution for clients. We also help businesses directly who need assistance implementing new software, procuring mobile devices such as tablets, phones, or laptops, and managing each while providing ongoing technical support.
Whether you’re contemplating the cloud or seeking a consultant with deep expertise in technology, let’s connect, it’s what we do best!
