XaaS: Anything as a service holding the future of the digital age

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"Anything as a service" (XaaS) holding the future of the digital age

In times of pandemic, remote working became the new normal, with most companies mandating remote working models permanently. Many businesses realized that their IT infrastructure was not adequate. The industry witnessed a massive acceleration towards ‘Anything as a Service’ (XaaS) adoption. XaaS is the new paradigm forcing digital transformation to ride on XaaS functions. The main goal of the XaaS model is to increase the value for the customer, enabling the customers to shift from high capital expenditure (Capex) to a more predictable operational expense (Opex).

A report by Persistent Research, states that the market for XaaS was projected at USD 5 billion in 2020 and is estimated to reach USD 97 Billion by 2031 at an expected CAGR of 12.5% during the forecast period 2021-2031. Further, a recent study by Deloitte highlights that 75% of respondents believed that the XaaS model encourages innovation and enables faster time to market. In comparison, 39% confessed to using it to close any gaps that existed between them and their competitors. 

XaaS Definition Simplified

XaaS, a term that includes the delivery of anything as a service. It takes into consideration the number of products, tools, and technologies that vendors deliver to users as a service over the network, rather than on-premises within an enterprise.

XaaS Key Characteristics

  • High Scalability
  • Multi-tenancy
  • Online and automated provisioning 
  • It is device independent enabling users to access the software, irrespective of the device that is being used
  • Location independence
  • Term-based billing or pay-as-you-go models

Moving from SaaS to XaaS

SaaS has been around for eons since the advent of cloud computing. SaaS transformed the software and IT industry in a big way as it provided a digital connection between the service provider and the end-user.  With more and more products and services being digitally connected, XaaS is the most innovative way to sign up.  Importantly, XaaS offers businesses greater flexibility, scalability, and agility to their existing architecture (see below).

Saas vs Xaas

What is Servitization?

Companies look to integrate their products and services into a single package; this is known as servitization.  XaaS is built on the theme of how it takes any IT function or any business function, productizes it, and adds multiple layers of services to it.  The mix of products and service offerings allows organizations to provide greater value propositions rather than standalone offerings.

Key Use Cases

In a XaaS model, there is a possibility to convert one-time buyers into service subscribers, with the add-on benefits, the typical examples like Spotify, Netflix.  Another use case worth mentioning is General Motors (GM), with its Maxis solution built the data-as-a-service platform on top of a private cloud.  Strategies like pricing, marketing, sales forecasting, sales leads, and contact center text analytics are some of the functions that are being supported by it.  XaaS made an impact on realty major Cushman & Wakefield, they performed trials using XaaS as a proof of concept as a service, wherein IT partners with the business.

Advantages of XaaS

  • The company can retain ownership of the product and remove it when not required.
  • It offers a service model which will cut down costs and ease IT deployments.
  • Fewer IT on-premises reflects fewer physical overheads in equipment space, power, IT resources staffing brings down CapEx costs to OpEx costs.
  • IT staff can use their time to improve business efficiency.
  • A single XaaS provider will offer most of the technology and services that one requires, instead of hunting for each one independently
  • XaaS offers a subscription-based business model, pay month on month, no long contracts, offer ease of cancellation
  • With the elasticity that the cloud offers, XaaS offers an increasing range of solutions allowing businesses to choose what they want

In a hyper-connected world and competitive landscape, technology leaders understand the importance of XaaS, and its adaptiveness will be the key to achieving the digital transformation goals.  

Upcoming Trends of Everything as a Service.

With the digital revolution all over the place, businesses are gearing to seek newer business models, flexible technology platforms, and the world adapting to the call for artificial intelligence (AI) and the Internet of things (IoT). The future of XaaS is certain and will drive business and dominate the future of cloud computing. As a leader in XaaS, STL is well placed to advise and support your digital transformation objectives. Read more about how STL’s new Network Software (NSW) Portfolio is everything that CSPs need to leapfrog to the top of the evolution in this Anything-as-a-service (XaaS) economy. Visit our website to connect and see how STL can help you.

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