Facebook community Community of agency and productized service owners. XaaS lets technology professionals concentrate on what they do best. “XaaS offers great opportunity for the IT department to redirect focus to more forward-thinking and strategic initiatives while confidently leveraging XaaS offerings. Moving to cloud-based architecture provides scalability, security, and increased collaboration.

xaas examples

Startups and mature companies will no longer have to invest in bulky, costly hardware and infrastructure needs or hire an extensive amount of full-time employees to build and develop products. STaaS stands for “Storage as a Service.” It can be costly and cumbersome to house all of your data internally. That’s why companies are turning to STaaS providers for their storage solutions. A XaaS platform eliminates the need to worry about building out extensive on-premise storage, web services, hardware, or custom software. XaaS companies use cloud computing to deliver their services to millions of customers worldwide. There are numerous XaaS businesses that have created a loyal customer base by continuously refining the user experience.

For example,Appleentered the market in the 1970s as a hardware vendor. In 2008, the company offered its first service, the App Store, selling third-party applications for its iPhone and iPod Touch. By 2019, its services business posted gross margins of 63.7%, almost doubling that of its product division, which posted a 32.2% gross margin. The examples above reflect the growing trend towards implementing “everything-as-a-service” – or XaaS – and subscription business models, a popular type or form of XaaS. These types of digital business models are the result of product/service digitization and the global shift to cloud-based technologies. Today we live in a digital world with an estimated 2.5 quintillion bytes of data generatedevery day, transforming how we live, work, and do business.

Netapp And Xaas

INDEX, an industrial machinery and components company, is expanding its business to become a comprehensive supplier of digital customer services. Second, a subscription-based model is also a predictable and stable source of revenue for companies, which is especially critical during times of uncertainty – like a pandemic. DaaS provider mainly manages storing, security and backing up user data for the desktop apps.

The primary showstopper for organizations that decide to choose cloud services has always been the security concern. Even in the case of switching to the cloud, companies generally prefer their sensitive information to stay on-premise. However, to overcome this concern, it is essential to xaas examples understand the security and compliance standards of your XaaS providers and choose the right one for your business. As XaaS becomes more popular, bandwidth, latency, data storage, and recovery times can be affected. If too many clients use the same resources, the system may slow down.

xaas examples

Businesses won’t have to focus on building data warehouses, acquiring servers, or even having an expansive IT department. They can retain critical staff and leverage the XaaS company as a true partner. Instead, businesses can enlist XaaS companies’ help to use these services and integrate them into a business. It makes it far easier for the company to pivot if needed, especially if they’re bootstrapped. If a customer needs to cancel or adjust service, they can grow or shrink with the XaaS company.

Their Citrix Workspace is designed to bring together all your apps and software into one secure desktop, enabling your team to work more efficiently across a variety of different devices and platforms. After making changes or downloading data from this workspace, the browser will send the request to the platform. Typically, the platform runs on on-premise servers, a cloud provider, or a web-based network. Carsharing – Using apps, you can rent a car from an individual vehicle owner when you need it, paying by the mile rather than using a taxi or renting a car over several days or weeks. The RV industry is also hopping on this trend, creating a business model similar to AirBnB.

The Definitive Guide To Surviving The Xaas Revolution

A company can selectively deploy communication apps that best suit their current needs for a certain period and pay for this usage period only. It’s easy to rack up numerous fees and additional seats for your employees when trying to https://globalcloudteam.com/ scale. Evaluate each subscription based on what you need now and what you may need in the future. It could be costly to switch down the road, so you want to be sure that you’re selecting the perfect XaaS service to scale with you.

“Anything” is a broad category, though, which can sometimes make the concept of XaaS companies hard to grasp.

Sign up for a free trial and see how subscription-based services can transform your business. Storage – Most businesses have shifted away from paper and filing cabinets toward digital storage. But maintaining servers in-house can create security problems and other issues. Cloud-based storage providers can deliver both space and security at enterprise levels, easing the burden on small- and medium-sized businesses. Business model innovation occurs when existing models are modified, or new models are constructed.

Another thing the XaaS business model does well is offer a product or service bundled with a managed service. In this context, a managed service is a more one-on-one or individualized approach that serves as a complement to the main product or productized service. A true XaaS business must emphasize the service part of its offerings — not necessarily the product. Rather, the XaaS business model is built around having enough flexibility to pivot when customers’ needs change. Now, let’s take a look at how this business model can offer valuable insights to businesses that productize services.

A good ERP system will include thesebilling capabilitiesor can be purchased as an add-on to your existing ERP system and licensed separately. Discover how to handle the new demands of the subscription-based economy. Other forms of XaaS include monetization based on volume of usage – or the outcome – as well as fixed price or variable price approaches. To learn more about how the XaaS model opens new ways to improve operational agility and deliver cost savings, download our eBookhere. When too many clients are using same resources at the same time, the system can slow down. It contains improved security controls and configured to exact requirements of business.

  • With XaaS, business is simplified as they have to pay for what they need.
  • Since the XaaS model fosters selling “anything or everything” as a service, there are countless examples of XaaS.
  • In this model, companies adopt a cloud service as and when the need arises, thereby helping them sidestep the traditional IT infrastructure that requires continuous management.
  • If too many clients use the same resources, the system may slow down.
  • According to a report by Statista, there was a 7% increase in the number of organizations that embraced DevOps for…
  • Depending on their infrastructure, security concerns may arise, and hacks may occur.

Look to see if they have suffered from data breaches in the past or have had other concerning reports in the news. It can be a small but critical step to ensure that you are making the right choice. However, despite all the benefits, there are still a handful of negatives that accompany XaaS businesses. Offloading some data to a reliable STaaS partner can free up internal resources and reduce costs.

PaaS provides a foundation for entrepreneurs and business owners to create products on cloud-based infrastructure and sell them to the masses. Users can build their products on this platform, cutting out the costly expenses of buying and storing hardware independently. PaaS companies can offer their customers everything ranging from servers to storage, database functionality, and more. For example, in the IT security space, a XaaS company might sell a cloud-based security package while also offering training or help desk support from a tech expert who is available by phone or through email. If you have a productized service business, there might be a dozen other companies that sell the same services. From a broader perspective, the move to XaaS and the servitization of products can promote acircular economy– especially in the manufacturing industry.

The healthcare industry has opted the model HaaS service through electronic medical records . IOT and other technologies has enhanced medical services like online consultations, health monitoring 24/7, medical service at doorstep e.g. lab sample collection from home etc. The biggest drawbacks are mostly related to end users and concern the security of personal data and risks of massive data loss. Desktops are delivered as virtual services along with the apps needed for use.

Be Vigilant About Your Cloud Spending

Using technology and a clever questionnaire system, Dollar Shave Club personalizes every box of razors. Rather than just putting up a storefront with all its products, it makes the purchasing process unique to the individual. This is XaaS that scales and still feels unique for every visitor to the site. Productization involves taking a skill or service and packaging it as a product to make it easy for any consumer to buy “off the shelf” online.

xaas examples

Hewlett Packard Enterprise transformed its traditional product offerings into high-value solutions to generate lifetime customer loyalty and recurring revenue streams. In the past 50 years, the averagebusiness model life spanhas fallen from about 15 years to less than five. And to survive in such a fast-paced environment, organizations must be agile, quickly adapting to changes in technology, market trends, and customer expectations. Although we have covered a lot of ground in this article, you might come across more practical hiccups that spring up once you initiate a transition. Especially, when your IT team has little to no exposure to the XaaS model, it becomes challenging to lead through the change. The combination of cloud computing and ubiquitous, high-bandwidth, global internet access provides a fertile environment for XaaS growth.

What Is Paas? How Platform As A Service Is Different From Iaas And Saas

Servitization refers to “servicing as a service,” which means combining services with other services or actual products. XaaS stands for “Everything as a Service” or “Anything as a Service”. It’s an acronym for providing any products, tools and technologies that businesses may need as a service instead of on premise or with a physical product. The term has been popularized by cloud computing services, such as SaaS , IaaS and PaaS . A provider integrates their security services into your company’s infrastructure and, as a rule, delivers them over the Internet. Such services may include anti-virus software, encryption, authentication, intrusion detection solutions and more.

xaas examples

For example, restaurant delivery services like Grubhub offer customer perks that let users save on meals for using the app. The best XaaS companies innovate by using technology to present their service or product in a unique way. Human Resources and Staffing – “Humans as a service” may sound futuristic, but a growing number of companies are turning to productization for their human resources and staffing needs. While XaaS and productization share many similarities, they aren’t necessarily the same thing. In fact, businesses that choose to productize their services can borrow from the XaaS business model. Create a clear roadmap of what the organization needs to do in order to address the gaps uncovered in the gap analysis.

Servitization also allows businesses to purchase services and products in a bundle instead of having to worry about connecting tools from different service providers or maintaining a product once purchased. The seller benefits also by selling a service with the product and potentially obtaining the old product that can be used for parts, refurbishments, etc. Managed service providers own some hardware and install it on customers’ sites on demand.

XaaS companies often offer technical support for some problems that businesses would have had to handle independently otherwise. It’s a huge benefit because the XaaS company is acting as an extension of your team. Companies don’t need to build out their back office with servers or go through costly recruiting initiatives for employees responsible for the scaling effort. Instead, they can rely on the XaaS company to play a critical role in infrastructure and overall success.

Performance Issues And Outages May Happen

It can be easily customized to your business needs and provide a range of benefits. Contact us to learn more about this very offering or other services we provide. A DaaS provider is typically responsible for storing, securing and backing up user data, as well as delivering upgrades for all the supported desktop apps. The XaaS model provides consumers with greater price flexibility, leaner structures, and relevant support. However, it can also be vulnerable to hacks, outages, and hidden costs. These outages can disrupt your business functions and grind operations to a halt.

Xaas In Cloud Computing

XaaS gives more users access to cutting-edge technology, democratizing innovation. In a recent survey by Deloitte, 71% of companies report that XaaS now constitutes more than half of their company’s enterprise IT. ManyRequests gives businesses an all-in-one platform for selling productized services.

This is a common trend in the manufacturing industry, where manufacturers move from simply building and selling a product. They start adding additional services and products and may sell direct to consumers. In this approach manufacturers get closer to customers, provide more value to them, and retain them by providing different levels of service differentiation. The evolution of business models from distinct products and services towards XaaS.

It is therefore important for both cloud providers and customers to be conscious of their obligations and responsibilities in ensuring data security. While organizations typically opt for cloud services to reduce costs, improve performance, increase flexibility, etc., the ability to innovate at a much faster rate is a significant offshoot of choosing cloud. Specifically, with the XaaS model in which you could choose anything as a service, you have multitudes of choices to push the envelope of your product or service.

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