XaaS stands for “everything-as-a-service.” It is a collective term that refers to the delivery of a wide variety of technology products and tools. Just like in Algebra, X could be anything and everything.
The premise of XaaS is that any function involving the Internet can be turned into a service for the consumption of enterprises. For instance, instead of setting up your own servers, you can get the services of virtual private server providers. The same is true for other IT needs. Some examples of XaaS are software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), and platform-as-a-service (PaaS).
Read More about “XaaS”
The term XaaS may sound new. However, suppose your company uses Salesforce for customer relationship management (CRM), Amazon Web Services for cloud computing, and Google Workspace as your productivity and collaboration tool. In that case, you are already enjoying the benefits of XaaS.
In fact, 71% of companies say that they already use XaaS for more than half their enterprise IT requirements, according to a Deloitte study.
Now that we have explored what is XaaS, let’s delve into its advantages and disadvantages.
Advantages of XaaS
Several companies operate under the XaaS model because of its many benefits. Among them are:
- Quicker access to new technologies: In the past, shifting to new technologies was sometimes impossible because of high costs. After all, companies would need to allocate significant human resources to study and implement the technologies. With XaaS, however, businesses can quickly test new solutions. In the Deloitte study cited above, the goal of 40% of the respondents in using XaaS is getting access to the latest technologies.
- Focus on other innovations: The XaaS model helps companies focus their innovation on what matters, as it frees up time and budget allocated for certain IT operations. The IT team may no longer need to do an in-depth study on technologies and instead concentrate on other aspects, such as improving cybersecurity.
- Save on costs: Instead of buying hardware, such as servers and other equipment, and installing them onsite, businesses can now use IT services on a subscription basis. XaaS helps companies cut costs down, as they only pay for the services they use. There’s also no need to spend a lot to set up their own infrastructure since they are using the providers’ resources.
Disadvantages of XaaS
Like all operating models, XaaS also has some drawbacks, including performance issues and the possibility of downtime. We explore these items below.
- Troubleshooting issues: When the IT team encounters a problem with XaaS technology, it might be difficult for them to address. They would need the provider’s help, which could be a challenge, depending on the quality of their technical support. Nevertheless, companies may require the IT team to learn about the technology in case issues arise.
- Downtime and performance: XaaS users won’t be able to use the product when the providers’ servers are down. Several factors can affect XaaS uptime, ranging from Internet connectivity to network maintenance. XaaS users may also find that as the vendor gains more customers, the system could slow down.
- Cybersecurity risks: XaaS users inevitably share data with vendors, which poses third-party risks. Data sharing has to be managed well estimates say that 60% of data breaches are associated with third parties.
Companies that plan to employ XaaS for their enterprise IT needs would need to weigh the operating model’s benefits and drawbacks. In the end, it all boils down to what matters to the organization most. For instance, if accessibility and performance are their top priorities, they could choose to implement technologies and their underlying infrastructures internally and on-premises instead of relying on a third-party vendor.