The way modern businesses utilize goods and services is rapidly changing amid the tumbling economy and growing challenges. We have witnessed the rise of the “as a service” model in recent years in both B2B and B2C segments across the world. This subscription-driven model enables businesses or enterprises to pay only for what they use. XaaS solutions or Everything as a Service model is an implementation of the same subscription-based model.
As per the Fortune Business Insights estimate, the global everything as a service (XaaS) market is expected to grow from USD 419 billion in 2021 to USD 2384 billion by the end of 2028. This prediction shows a massive CAGR of over 28 percent in the 2021-2028 period in the size of the XaaS market. This growth is because of the increasing demand in the market and the corporate sector’s effort to return to pre-pandemic levels in the post-pandemic period.
There is no exaggeration in mentioning that XaaS solutions have changed consumer expectations drastically. As the tech industry is on the cutting edge of the XaaS-based model, we will discuss the scope of XaaS in startups and SMEs and its benefits to bring success in a cost-effective way. We will also discuss what is ahead for XaaS in the future from the perspective of a software development company. But, let us start with the introduction of XaaS.
What and Why of XaaS - A Popular Delivery Model
Delivery of everything or anything as a service is known as XaaS. These days, a large number of services, solutions, and technologies are delivered globally through vendors as a service. Usually, this delivery takes place over the Internet instead of involving humans and offering the same on-site. XaaS solutions include an IT function, which is designed to fit a service model for digital consumption by enterprises worldwide.
These days, many reputed offshore software development companies offer flexible consumption models based on the pay-as-you-go concept for cloud and other related services. SMEs and even startups afford these models as they do not require fixed and upfront payment irrespective of limited or specific usage. The rise of a XaaS model has remained significant with the advent of the following services and solutions.
Key Reasons for the Rise of XaaS in the Last Decade
Arrival of large SaaS (Software as a Service) providers like MS Office 365, Salesforce, and Google Apps
Advent of various PaaS (Platform as a Service) vendors including AWS (Amazon Web Services), Google App Engine, and Apache Stratos
Availability of IaaS (Infrastructure as a Service) solutions including Google Compute Engine (GCE), Microsoft Azure, and AWS Elastic Compute Cloud
Growing popularity of solutions like storage as a service and database as a service in the corporate world
In this pandemic-hit world where remote work has already become a new norm, XaaS has gained immense popularity. What’s more, increasing incidents of cyberattacks and threats have made malware as a service an essential model to safeguarding enterprises against such incidents. Other important models including disaster recovery as a service and network as a service are also gaining ground in this pandemic age.
A XaaS model delivers a large number of IT solutions and services in the world. Still, a lot of scopes are left for XaaS solutions in line with ever-changing market trends and customer expectations. An IT infrastructure management company can suggest the most suitable XaaS model as per your business needs and types of processes. Let’s understand the major benefits of XaaS for startups, SMEs, and large enterprises.
Top Business Benefits of XaaS for Startups and SMEs
The XaaS model has successfully broken the boundaries while paving the way for digital transformation. It offers a ubiquitous environment to startups and SMEs alike. When it comes to meeting the growing and unexpected demand, the XaaS model always remains helpful and enables users to focus on innovation. As one of the most cost-effective ways, XaaS facilitates users to leverage all its benefits without investing in infrastructure or resources.
With unlimited computing capabilities and scalable storage facilities, the XaaS model can enable the users to get rid of downtime or additional maintenance-related issues. Also, the company management does not need to invest in infrastructure as the XaaS model can make data processing easy and convenient with high flexibility. Employees can focus more on their core skills and innovation as the XaaS-based model can take care of key business processes.
In today’s fast-paced business scenario, it is difficult to enhance the customer experience. Startups and SMEs find it very difficult while maintaining the balance between production and budget. However, XaaS can offer more possibilities for customer interaction, and employees can remain engaged with customers to improve the customer experience significantly. Companies can also get real-time insights into the customer’s experience.
Simply put, it is easier for SMEs and startups to serve their B2B and B2C customers with high-quality products and services with the help of XaaS solutions. Let’s understand the future scope of the XaaS model.
What Lies Ahead for XaaS
Apart from enhancing operational efficiencies and increasing savings, XaaS offers real-time access to technical capabilities and promotes innovation. Both startups and SMEs can sustain in the intensifying competition with robust XaaS solutions. These solutions hold the key to transforming key processes over the period and keep startups at the level of mid-sized companies or large enterprises.
We can expect exponential growth in the XaaS model over the period with evolving cloud and other emerging technologies. Offshore software development companies will integrate advancements of future-ready technologies to come up with unique and customized XaaS solutions. Every size and scale of enterprise can make the most of technology with the help of a XaaS concept.
Concluding Lines
While taking startups and SMEs to a new level, the XaaS model promises to deliver a seamless consumption and revenue-based solution. It can effectively meet the ever-changing needs of the organization, industry, customers, and market. In the post-pandemic period, it is interesting to see how the XaaS model shapes up to assist startups and small to mid-sized enterprises.
Silver Touch Technologies is a leading software development company. We provide the best-in-class Managed IT services and IT infrastructure management solutions to our global clientele. If you want to know more about our services or the scope of customized XaaS solutions for your enterprise, simply mail us at info@silvertouch.com and our experienced consultants will get back to you soon.
