The use of on-premises solutions typically puts the burden entirely on your team to deploy, manage, update and secure.
But when you invest in an “as a service” (or XaaS) offering, that responsibility shifts to outside providers or partners with more expertise, bandwidth or security than you could bring in-house.
What is XaaS?
“As a service” is sometimes referred to as “on-demand” technology because you need access to the internet to use or manage your solution hosted in the Cloud. You may hear the acronym “XaaS” (“everything as a service”) thrown out in conversations around Cloud computing.
One of the benefits of XaaS is that you are moving your technology budget from a capital expense to an operational expense.
- A traditional approach to purchasing IT resources requires a significant upfront cost to own the technology as a capital expense. There would be costs for upkeep and addressing unexpected issues. There is also the high cost of upgrading systems to scale your business as it grows.
- The “as a service” model is subscription-based. You pay a subscription fee per user to gain access to a solution and benefit from the support and security a vendor includes. As an operational expense, your business can have predictable monthly payments.
What Are Examples of ‘as a Service’ Models?
Four “as a service” technology models are widely used by businesses today to efficiently and effectively manage their IT needs.
- Infrastructure as a Service (IaaS) – With IaaS, a technology provider with a large digital base will rent out access to its infrastructure to businesses that do not have the space or funds to support their on-premises servers. The provider maintains the hardware and ensures the network, servers, storage and other components function well.
- Platform as a Service (PaaS) – PaaS is more comprehensive than IaaS and provides hardware, middleware and operating system management. Companies with on-premises hardware can use PaaS with their infrastructure or combine PaaS and IaaS for a more touchless experience.
- Software as a Service (SaaS) – You can have a fully managed solution hosted in the Cloud. You purchase an operating license, usually per user, and begin using the solution immediately. A partner will also handle data, storage, infrastructure, updates, security and maintenance, among other things.
- Disaster Recovery as a Service (DRaaS) – DraaS involves a complete backup of data, ERP and business applications in the Cloud. DRaaS ensures your operations are secure and that your business keeps going in case of a disruption or disaster.
Read more about selecting the right Cloud path for your business.
What are the Benefits of ‘as a Service?’
“As a service” offerings like IaaS, PaaS and SaaS are more scalable, cost-effective and secure than legacy on-premises systems.
Because a trusted partner manages these systems, you need fewer IT resources in-house to maintain your infrastructure. Updates are automatically pushed to your software, simplifying what used to be a months- or years-long process to keep your systems up to date.
What’s more, user adoption tends to be higher with “as a service” technology solutions as implementation is more straightforward and access is more streamlined. Other benefits of “as a service” offerings include the following:
- Additional security
- Better reliability
- Access to specialized IT experts
- Data conformity between departments
- Remote access to critical documents
- Affordable “pay-as-you-go” subscription models
Are There Drawbacks to ‘as a Service’ Models?
Before investing in any service, it is essential to find a trustworthy provider.
Be sure to vet any potential Cloud partner. Ask how long they have been in business, whether they have experience in your industry and what security measures they have in place. Otherwise, you could risk investing in unreliable or unsafe technology services.
Why Are Technology Subscriptions on the Rise?
Subscriptions provide more value at less cost. For example, instead of making a one-time purchase for software that will become obsolete in a few years, you pay a monthly rate for a fully maintained and up-to-date experience.
Your provider will handle integration, updates, security, maintenance and everything else, so your team can focus on what they do best without having to worry about unforeseen disruptions or dealing with outdated technology. Subscription models allow you flexibility and savings (in time, money and resources) to achieve your business goals.
Am I Already Using ‘as a Service’ Products?
With concerns about risk, cost and change management, many businesses are hesitant to convert to Cloud-based “as a service” offerings. However, although they may not realize it, most organizations already use these services.
Various technologies already commonly operate as a service:
- Email platforms
- Customer relationship management (CRM) systems
- Marketing automation platforms
- Data storage, data backup and file sharing
- Office applications
- Business intelligence and data analytics software
If your business still relies on legacy on-premises systems to manage these solutions, it is time for an upgrade.
How Do I Get Started?
The best way to start is by assessing your current technology and software needs. For example, are you still relying on outdated hardware? Does a solution provider already manage some of your systems? How would “as a service” offerings benefit your organization’s efficiency and revenue?
A Cloud and ERP partner like Enavate can help you identify areas that need improvement and create a roadmap for success. Talk to one of our experts to learn about the ROI potential of your investment and develop an implementation strategy to drive successful digital transformation.
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