What is XaaS? Definition & Benefits
Before the age of cloud computing came upon us, purchasing software applications was a straightforward process of picking a product off the shelf and installing it on your computer. Yes, those were the dark ages!
However, in today’s landscape of software infrastructure investment, not only is the purchase path different, you’re also delving into a world of business acronyms, each with its own unique set of features. To make the best choices for your business, it’s necessary to stay well-informed about these acronyms and their implications.
To make matters even more interesting, another acronym joins the party.
Introducing XaaS (Anything as a Service), which is the latest addition to cloud service models. So, let’s dive in and look at:
What is XaaS?
Just to make things clear from the very beginning: no, XaaS is not a typo. We didn’t mean to say Xmas.
With that out of the way, let’s talk about exactly what XaaS is.
As the newest acronym on your list of computing services, XaaS stands for anything sold as a service. XaaS is a comprehensive concept that includes delivering services, tools, and even games through the cloud, as opposed to traditional on-premises or physical acquisition methods.
Because of this everything as a service perspective, XaaS is really not a new invention. In fact, chances are you already have XaaS-type software in your company’s infrastructure.
Let’s go through some of the most common forms of XaaS offerings:
SaaS (Software as a Service): SaaS applications are provided by a cloud provider and later offered to users on a subscription basis.
PaaS (Platform as a Service): PaaS platforms are offered to developers to build, deploy, and manage apps without maintaining the underlying infrastructure.
IaaS (Infrastructure as a Service): IaaS services give users access to an entire IT infrastructure.
CaaS (Communications as a Service): CaaS services are cloud computing models that give users a platform to deploy and manage apps.
DaaS (Data as a Service): The DaaS models provide users access to virtual desktops.
NaaS (Network as a Service): NaaS offerings refer to access to a network infrastructure on a subscription basis.
Check out our guide to find out more about these business acronyms.
The first three variations, SaaS, PaaS, and IaaS, are widely perceived as the pillars of XaaS services.
Fun fact: Because of the popularity of the anything-as-a-service business model, you can also find MaaS (Malware as a Service), which is where end-users can find the needed resources to set up attacks.
XaaS Vs. SaaS
So why is this differentiation more important than others, you might be wondering.
Well, with over 31,000 SaaS businesses out there and the industry’s worth expected to reach $900 billion by 2030, SaaS remains the strongest as a service model.
Even though they are both cloud service models, let’s see what separates the XaaS model from SaaS.
SaaS (Software As A Service)
- This model focuses on delivering applications or software over the cloud.
- SaaS users can access and use different features hosted on cloud services without the need to install them on the client’s computer or server.
- SaaS providers, on the other hand, take care of the entire software IT, including security and updates.
- SaaS apps come in different forms, aiming to resolve a wide range of needs, ranging anywhere from CRMs to office productivity.
XaaS (Everything As A Service)
- XaaS is a much wider concept than SaaS, encompassing different cloud providers, whether they are infrastructures, platforms, or software.
- SaaS apps are part of the XaaS concept.
- XaaS users are given greater flexibility, having the option to choose the type of offering that best fits their needs.
7 Benefits of XaaS
When it comes to XaaS, the saying actions speak louder than words stands true, with a unique twist — in this context, actions are substituted by tangible advantages.
An XaaS product brings many benefits that companies will appreciate and should take advantage of. To understand all of the benefits, let’s discuss what these are.
For Providers
- Greater reach: Because this model is simple to sell, purchase, and deliver, a lot of businesses adopt XaaS systems. Also, because XaaS providers have easier access to clients, this enables users to scale globally.
- Boosted customer satisfaction: Simplifying the user’s access to cloud solutions that adequately respond to their infrastructure needs while also providing increased technical support will improve the relationships you build with your customers.
- Predictable long-term revenue: Operating on the subscription-based model, XaaS providers can enjoy steady revenue streams.
For Users:
- Faster business growth: Whether you need to scale your resources up or down, XaaS can provide services that meet your IT requirements while removing the hassle of installing or maintaining apps on site or managing complex systems. Having this option available makes scaling into new markets a considerably more straightforward process.
- Optimized business processes: Because the XaaS model operates via cloud, one of the biggest advantages is controlling your infrastructure resources. The XaaS user can cut operating expenses by employing fewer servers, data centers, and other elements of an IT infrastructure. Plus, due to its subscription based usage model, companies can make better business decisions and improve operational efficiency.
- Agility and convenience: If your IT systems are agile enough to make your business more responsive to client and market needs, you can generate new and greater revenue faster, establishing your business as a strong option for potential leads. Also, keeping up with technological advancements is essential in today’s competitive markets. When looking into XaaS options, just remember that updates are performed automatically.
- Increased technical support: XaaS providers offer their clients ongoing support and assistance, ensuring that all systems work properly. As you can imagine, users no longer have to shell out their hard-earned money to ensure that a technical department is available and can sort out any issues that might appear.
7 XaaS Challenges
While XaaS offers many advantages for both providers and users, there are also challenges companies need to be mindful of. Whether it’s for application development or usage, understanding the complexity of the XaaS model is key.
For Providers:
- Performance: With XaaS increasing in popularity, businesses that develop applications must figure out how to navigate issues like data storage, bandwidth, and latency. Otherwise, should many users utilize the system, this might slow the system down, causing integration issues.
- Security: It’s important to take the right prevention and detection measures to keep fraudsters at a distance. However, this can easily turn into a daunting and complicated task, as fighting online fraud is an ongoing and costly battle.
- Continuous system development: Maintaining your leading market position means constantly investing in your products while always using the latest technology in your XaaS offering.
- Complexity in business operations: Due to XaaS product bundles, this model tends to add a layer of complexity to a service provider’s operational processes, including billing, fulfillment, and subscription management. Things tend to get even more complicated when the number of transactions increases.
For Users:
- Outages: With the XaaS model, the user depends entirely on the infrastructure offered by the service provider. In other words, you rely on other systems rather than your own to deliver your product to your customers. If something should go wrong, you have no control over when the issue can be fixed.
- Hidden Fees: While one of the main benefits of XaaS models is cost efficiency, you must also be mindful of other expenses. For instance, when looking to scale your business, you might have to buy additional licenses or switch to a more costly plan. So, evaluate your present and future needs and choose the option that fits your budget.
- Limited visibility: XaaS offerings appeal to businesses in different industries because they remove the necessity of an in-house IT infrastructure, which generates multiple expenses. However, outsourcing specific functions or systems takes away control. By way of explanation, you have limited visibility over the IT ecosystem you employ to run your business, which may have negative repercussions.
