Previously there were two options: either to get a bespoke or off-the-shelf software. Companies had no option either, they had to buy software and look after its maintenance and support which would cost them a lot. With the introduction of SaaS, everything became easy and simple. SaaS was great and still is but the XaaS business model trumped it.
No one could’ve ever imagined the adoption level of SaaS in the 21st century would increase this much but, the embracement of XaaS business model is the real game-changer.
Since the start of this new decade, everyone has seen the true value of selling solutions instead of being product-oriented only. This has given rise to the ‘as a service’ business model that has supplemented the XaaS business model.
Not an Overnight Build
It’s like when the iPhone first came out people were just blown away by the look and feel of it. It was unlike anything they had ever seen but after some time, they wanted something newer that they could look forward to. This is exactly the case with SaaS. It took almost 20 years for the service model to be what it is now. And the companies just loved this model as it saved them cost-wise. But, the XaaS business model has outperformed it because it focuses on the customer rather than the product.
Like iPhone 3G, 3GS came IaaS and PaaS. Now, these two were the latest and greatest additions after SaaS. To explain these two briefly:
IaaS: ‘Infrastructure as a Service’ reduces the operation cost. You can order a hosting service or get space in the data center. Computer resources like kernel GPU or RAM can be rented. This is the IaaS model.
By opting for this model, you can greatly slash down your costs of buying physical servers and managing them. That’s a great help!
PaaS: ‘Platform as a Service’ is typically associated with application development. It’s a cloud computing model that includes software and hardware tools that are needed to develop applications. Consider PaaS as renting a car, you’re not investing the money, your time, or customizing, you’re just using the car and paying for the petrol.
PaaS doesn’t fully replace the IT infrastructure of a company instead, it includes various underlying cloud infrastructure components like:
- Operating system
- Servers
- Database
- Middleware
- Networking equipment
- Storage services
Sunk Cost Reversed
In financial terms, a sunk cost refers to money that is spent and cannot be recovered. XaaS business model mitigates this concept by not possessing the equipment or a particular product but subscribing to it. This way it’s efficient and if full of value.
Think about it, if you’re running a company and for a brief period you require a server database, buying a dedicated one could set you back some serious bucks. However, if you dip your hands in the XaaS business model, you can get it until your usage is complete. Cancel at any time!
The XaaS Business Model Shift
XaaS business model is ‘everything as a service.’ As we mentioned earlier, in recent times, people molded themselves as per the service model. Direct product selling was a slow breed. When we talk about XaaS, it is a vast pool that not only includes SaaS, PaaS, or LaaS but much more than this. For example:
- HaaS – Hardware as a service
- DaaS – Device as a service
- AaaS – Data Analytics as a service
- CaaS – Compliance as a service
- TaaS – Transportation as a service
- FaaS – Function as a service
This is to list a few that we find interesting but the amount to which XaaS business model has expanded to this list is just too short. But if we start talking about all the ‘aaS’ (as a service) models, it’ll become quite tedious for you to read and sync it all in. So let’s tap onto some of the more trendy ones.
TaaS– ‘Transportation as a Service’ is something that is being used widely in our day-to-day lives. Uber/Careem these transportation service apps represent a major shift to the XaaS business model worldwide.
If we talk about DaaS (Device as a service) it’s intriguing. You can subscribe to a device such as a desktop, laptop, tablet, or smartphone with your software and hardware specifications. With this model, you access your corporate applications and data through a known Microsoft Windows desktop experience on almost any device connected to the internet.
The device as a service cannot be compared to the traditional bulk pc purchasing that is the go-to practice for organizations. DaaS saves cost while boosting your productivity; this cannot be achieved if the conventional way of buying devices has opted for. No wonder DaaS comes under the XaaS business model branch.
The XaaS business model cannot be drilled down to a single service because it consists of everything and anything. The level to which technological advancements are being foreseen, the XaaS business model is becoming a Godzilla.
But even Godzilla has its pros and cons:
Pros to XaaS business model:
The Xaas Business Model is:
- Xaas transformation is cheaper to adopt as you’re shifted from capital expenditure to operating expenditure.
- Improved productivity
- Opting for the XaaS business model is like getting Fort Knox in exchange. You’ll be achieving higher levels of cybersecurity.
- Chances are if the XaaS business model is on your radar then your organization’s growth levels are high, providing your workforce with the right equipment and tools that’ll encourage you to explore and optimize workflows.
- Convenience. If you need it then Xaas transformation is for you
- You’ll have the agility if sided by the XaaS business model.
Cons to XaaS business model:
With XaaS Business Model:
- You can expect a lag in some services if you’re actively choosing them.
- XaaS is gaining a lot of popularity which means that a large user base could impact the performance levels.
- Resolving some technical issues can be way tougher as the integration of XaaS relieves the IT staff of many tasks and it becomes hard to understand the dynamics of the cloud systems.
Xaas Development Services
XaaS business model took its time to seize the market with its brilliant offerings. Although its advantages outway its disadvantages, the shift from SaaS to XaaS shows the as a service model significant advancements. What we like about XaaS is that it has so much to offer businesses with services that supplement their work in remote conditions.
If you think the XaaS business model is awesome, think about using it! There is so much that you can offer to your customers. You can get into the healthcare business, do make yourself an app similar to Uber or Career. Be it any app or website, Commersys is here to offer its development services to you.
With over 1,000 projects delivered, we know a thing or two about delivering quality code on time. So avail seamless services of the World’s Top Notch eCommerce Platforms.
Comments are closed.