The “as-a-Service” model of cloud computing, which provides services over the internet, is a growing trend around the world. Users are increasingly turning to Software-as-a-Service (SaaS) offerings to access services and products like Adobe Creative Suite and Microsoft Office. In the same pay-as-you-go business model, other kinds of services are being made available.
SaaS, PaaS (Platform-as-a-Service), and IaaS (Infrastructure-as-a-Service) are all words you’ve probably used before. All as a service, or XaaS, is a newer term that incorporates these ideas—and more.
What is Xaas?
Everything-as-a-Service (or Anything-as-a-Service) is abbreviated as XaaS. XaaS refers to how businesses all over the world are using the as-a-Service model to offer just about anything. (This is why services like FaaS, BPMaaS, ITaaS, and even ransomware as a service are popping up!)
XaaS was originally a digital concept, but it can now be applied to the physical, non-digital world as well.
Many B2B companies offer as-a-Service options. These services are conveniently cut and portioned out to produce personalised services that meet each client’s unique needs at a price that makes sense. In this sense, XaaS can be thought of as a composite of SaaS, PaaS, and IaaS services.
The primary aim of XaaS services is to improve the customer’s satisfaction. You want to turn one-time customers into service subscribers who get continuing benefits from the product in a XaaS model. Customers should trust that their money is being put to good use in a XaaS offering; otherwise, as we’ll see below, customers are unlikely to follow XaaS. This is where the term “servitization” comes into play.
What is servitization?
With the massive success of subscription-based business models, more companies are trying to get in on the action by combining goods and services into a single bundle known as “servitization.”
The target of servitization must be more than just milking more money from customers if it is to succeed. Combining services and goods enables companies to provide consumers with more value than the products or services might provide on their own.
Switching to XaaS:
While the benefits of servitization and increasing the company’s value proposition by the use of the XaaS model are appealing, implementing this strategy is not easy. Business models based on subscriptions are gaining popularity.
Customers may still be reluctant to implement XaaS. The main explanation for this is generally related to perceived worth. You might have a hard time persuading buyers to rent a toaster from you and subscribe to an analytics platform that uses machine learning to toast various types of bread to the perfect doneness for each person in the house.
The value of XaaS must be maximized:
The best way to start and sustain a XaaS product is to do the following:
- Find ways to increase the value proposition of the offerings both online and offline.
- Provide a service that helps your customers in a special way.
In the coming years, we’ll see a lot of IoT devices and analytics being used to build a better value proposition.
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