XaaS – Spearheading Innovation In The IT Landscape
30 Jan. 2020 Trending
Subscription-based models have created a seismic switch in the way services are delivered and consumed in the ever-evolving, fast-paced, and disruption-driven service marketplace. Technology-enabled businesses have simplified operations management by adopting cloud-based consumption models that bring scalable solutions and tangible products to the table.
When a wide range of services are delivered through subscriptions via cloud, they often become booming business differentiators. As we know, the current trends of SaaS are influencing enterprise performance across different sectors. Similarly, a gamut of operations can be offered as-a-service creating a paradigm shift among C-level executives and are collectively known as XaaS, which stands for Everything-as-a-Service or Anything-as-a-Service.
XaaS in cloud computing has a persuasive wave that has led to the democratization of infrastructure for businesses. Being the new superhero of cloud computing, it is ushering in advanced and customized DIY components, and single-click deployments. If you are still wondering whether SaaS is a better option than traditional software for an agile IT environment, XaaS along with the benefits of SaaS, gives you more reasons to go for the as-a-service model.
XaaS On The Rise And How?
XaaS encompasses a vast number of products, tools, and technologies that vendors now deliver as-a-service to multiple sectors over a network by way of licensing-and-delivery rather than providing them on-premise or on-site.
Enterprises don’t have to spend millions of dollars owning the infrastructure, computing resources or network resources, purchasing licenses, or hiring full-time experts to handle their IT infrastructure. XaaS cloud providers do it for them by charging a nominal subscription fee (annual or monthly). This is one of the key reasons why the growth of the SaaS market has been strong in recent years.
This way, SMEs or establishments that are newly adopting to a technology-led business model can take one step at a time in testing the full value of the services they subscribe for.
With XaaS, companies can gain visibility around corners, make quick course corrections, harness technology to reimagine business processes and reinvent how to deliver value to customers. For this, they will need help from experts in the field to streamline the processes and offer end-to-end guidance.
Rishabh Software is a top player in the SaaS App Development sphere that can materialize XaaS implementations for your agile IT environment, cost-effectively.
XaaS in cloud can be considered an umbrella of services that can be a perfect blend of both tangible and virtual. Some of the services it encompasses include:
- Humans-as-a-Service (temporary and permanent staffing solutions)
This subscription-based model is spreading its wings to pursue the digital transformation journeys of enterprises driven by trends, including the internet of things (IoT) and machine intelligence.
XaaS in the cloud offers flexibility, agility, and responsiveness to enterprises to handle the challenges emerging from billions of users and smart devices with an optimized service model using multi-tenant approaches. Concepts like resource pooling and rapid elasticity in XaaS let business leaders simply add or remove services on-the-go. Efficient management through automated management, lower monitoring costs, and reduced downtime that XaaS offers, is a boon to any agile IT environment.
XaaS services are typically governed by a service level agreement (SLA), where a client-vendor relationship (win-win by all means) includes working closely for the greater good. Companies obtain respite from making substantial one-time investments and a fast-track ticket for digital transformation, and providers can enjoy long-term contracts with a vantage point to take up leadership in the new digital economy.
Anything-as-a-Service is an evolutionary move towards selling value as services rather than only products. At a consumer level, it represents a well-established business model, but in the technology scenario, it is a crucial turning point that gives businesses the path to innovation.
Features Of XaaS
Considered the ultimate cloud computing model, Anything-as-a-Service adds the ‘X’ factor to business modernization in any sector that thrives on smart solutions. Companies that need new technology innovations or want to scale existent solutions can easily choose the right set of services to leverage on for their needs and check their availability based on their budget.
The three key features that influence the success of the XaaS market include:
- Availability of the offer for users
- Declared levels of service
- Monitoring, measuring and analysis systems
Key Pros of Relying on Service Providers for XaaS
- Vendor-client relationships can be more personalized while services can be more customized with SLAs in place
- A shift from capital to operational expenditure model where there are fewer upfront investments
- Businesses of all sizes can access up-to-date technology and remain competitive and relevant
- Economies of scale can be leveraged since service providers handle the operational intricacies and the technologies
- Fast implementation TAT for new applications and business processes
Cons of working with XaaS Vendors
- Lesser visibility into service provider’s IT environment to have a more proactive role
- Possibilities of the service provider discontinuing the service, becoming unavailable, or altering a specific feature
- Service outages and security mishaps
- Hidden costs (integration, management, security, and handling large volumes of data)
- Service provider or vendor lock-in
Rishabh Software has spearheaded the XaaS vendor market with over two decades of presence in the industry as a certified IT service enabler. We address the conventional challenges posed by other vendors by,
- Building transparency and better visibility into our IT operations environment with explicit SLAs in place
- Rolling out a pay-as-you-go model, where you choose what services you need and how long you need them without any vendor lock-in implications
XaaS – The Service Provider’s Perspective
XaaS providers who build and maintain a XaaS product experience or consumption model have significant advantages. Firstly, they can capitalize on becoming leaders in the space by being equipped with the right technologies, tools, and processes. Secondly, SLAs and a subscription model mean long-term projects, business continuity, regular income flow, and sustained relationships with users.
XaaS allows service providers the opportunity to leverage the cloud with attuned network adaptability based on market demand rather than technology maturity.
Rishabh Software goes beyond being just a cloud vendor or a service provider. We have been collaborating with growing global enterprises as a strategic enablement partner for more than two decades. We believe our forte in cloud technology is adding significant value to enterprise digital journeys.
Factors Driving XaaS Adoption
According to the survey conducted by BusinessWire, 72% of enterprises have actively extended their services beyond their traditional core markets, 79% have expanded services to new international markets and 85% have increased their income as a result of embracing XaaS.
Among those who have adopted XaaS to their business model, 77% have increased customer retention, 75% have introduced more standardization into their products and services, and 80% claim they have introduced more personalization in marketing their services.
Thus, the factors driving XaaS adoption are demonstrated below –
The Future Of XaaS
We can sum this up in one word, “promising.” The fertile environment for the proliferation of XaaS in sectors like E-commerce, healthcare, retail, marketing, agriculture, banking and finance, telecommunications, energy management, transportation, insurance, government operations, education and many others is contributed by the combination of cloud computing and ubiquitous, high-bandwidth, and global internet access.
Cloud Evangelists say, “If you are aiming for the stars, it is better to end up in the cloud.” This holds in the case of XaaS, which simplifies growth at any pace with predictable spending and unrestricted scaling capability.
According to a leading survey conducted by Gartner Inc., the global XaaS service economy will grow at a staggering CAGR of 38.22% from 2019 to 2024. Through 2022, Gartner projects the market size and growth of the cloud services industry (XaaS) at nearly three time the growth of other IT services which is a whopping $331 billion.
What Next For Your Enterprise Agility?
So, now you’re convinced that you can achieve business transformation with XaaS as a pivotal player, right? But what next to get there?
For an innovative idea to spark transformation, top management has to approach a strategic enablement partner that can adeptly align business goals with market demands and technological opportunities.
Rishabh Software can power up your business productivity engine on the cloud with XaaS.