Companies today struggle with a wide range of operational issues, from inefficient processes to outdated infrastructure to the need for faster product deployment. The suite of solutions known as Everything as a Service (XaaS) can help resolve all these issues as well as help companies cut costs and contribute to increased collaboration and productivity among workers.
XaaS includes Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Each one is a cloud version of the traditional on-prem implementation. For example, SaaS replaces the disks or downloading process formerly needed to install software on a local physical machine. XaaS solutions also eliminate or greatly reduce the cost and effort needed to maintain on-prem hardware and applications.
In the following sections, we discuss the advantages that XaaS solutions can provide, how to know if XaaS is right for your company, how to map a XaaS strategy, common XaaS implementation obstacles to watch out for, and best practices for a smooth XaaS implementation. But first, let’s talk a bit more about what XaaS is.
What Is XaaS?
XaaS can have a broader meaning, which is literally anything as a service, including physical assets and equipment made available to customers on a subscription basis. However, here we are discussing a narrower definition, which is a range of cloud computing services delivered on demand or using a subscription model over the Internet. They are provided in three general categories:
SaaS. One of the first “as a service” offerings, SaaS is centrally hosted and delivered via the internet on a subscription basis. Users access and use the software through a web browser, eliminating the need for on-prem hardware and software that must be manually maintained. Benefits include shifting installation and maintenance to the provider, automatic updates, scalability, and reliability.
PaaS. Offering a complete development and deployment platform in the cloud, PaaS enables developers to build, test, and deploy applications without having to worry about system setup and maintenance. The platform includes everything needed for development, including supportive tools, frameworks, and services. Benefits include simplification of the development process, increased collaboration opportunities, and reduced time to market.
IaaS. Beyond SaaS and PaaS, IaaS delivers virtualized computing resources that provide the fundamental components of IT infrastructure. IaaS enables organizations to reserve virtual servers, storage, and networking resources rather than invest considerable time and money in physical on-prem equipment. Benefits include greater control, flexibility to scale up or down as needs change, and shifting the responsibility for managing operating systems, applications, and data to the IaaS provider.
The following video further describes and provides examples of these types of XaaS.
Benefits of XaaS
Wasting human and technical resources when conditions change is largely eliminated for companies that use a XaaS approach. The ability to expand and contract use of storing, hosting, and accessing data, software, tools, and applications is one of the primary benefits of this approach. This flexibility to adjust their use of these services as needed provides companies with additional benefits as follows:
- Cost savings. The use of XaaS eliminates the need for up-front investment in costly hardware, software, and infrastructure and shifts these expenses from CapEx to OpEx, providing greater cost predictability and budget management. The risk of spending too much on resources that end up being underutilized is greatly reduced.
- Scalability. With physical on-prem hardware and software, shifting usage based on necessity is difficult. Increasing equipment can take weeks or even months, while reducing it is wasteful. Virtual resources enable companies to resolve this issue because they can be ramped up or down nearly instantaneously and without waste. For example, with IaaS, organizations can quickly provision and deploy virtual servers, storage, and networking resources as needed.
- Operational efficiency. By using XaaS, a company frees up a significant amount of IT team time, which can be diverted to more strategic and core activities that support the company’s mission. Additionally, the XaaS solutions themselves can improve efficiency for all workers across the company.
- Productivity. With XaaS solutions, employees can access applications and data from any device, giving them the freedom and flexibility to work remotely. Additionally, these solutions provide collaboration features that enhance communication, information sharing, and teamwork, further contributing to productivity.
- Enhanced security. Providers of XaaS solutions invest heavily in both physical and digital security measures to protect customer data and infrastructure. Procedures typically include data encryption, access controls, threat detection, and regular security audits, as well as built-in backup and disaster recovery capabilities. Such enhancements are often more robust than individual companies could provide for on-prem hardware and software deployments.
- Agility in responding to market demands. All of the above benefits result in the ability for companies to be more agile in their operations. For example, an online gaming provider that suddenly gets a surge in sign-ups can spin up additional infrastructure to handle the increased load. An enterprise software provider can easily create a sandbox to start development of a new product idea.
XaaS is particularly useful for specific departments and functions, including IT, HR, sales, and customer support. For example, HR can use efficient cloud-based tools for recruiting, onboarding, and performance management, as well as provide convenient and secure employee self-service portals for accessing insurance information, requesting time off, and similar functionality in the cloud.
Is XaaS Right for Your Company?
There’s no question that XaaS provides numerous benefits. But is it right for your company? It might be if you struggle with the following challenges:
- Outdated infrastructure. Legacy systems may yield certain advantages, but they can also be costly to maintain and lack the scalability needed by modern enterprises, factors that can impede business growth.
- Limited capital budget. As already mentioned, physical on-prem equipment requires high up-front investment as well as unknown maintenance costs on an ongoing basis. For companies, especially start-ups, that money might be better spent on things like research, development, and marketing.
- Limited IT resources. Many companies want to limit their staff to only essential personnel, meaning IT teams can be sparse. Taking up their time with infrastructure and software installations and maintenance leaves little bandwidth for more critical tasks that are more likely to support strategic company goals.
- Limited access to advanced technology. Ambitious companies may want to perform complex tasks that involve the use of intensive AI or data analysis operations. Yet these operations might be outside of their capabilities with technology they have or can afford.
- Security concerns. Companies that retain customer data must do everything possible to keep it safe, especially in industries like healthcare and finance where that data is particularly sensitive. But even the best security solutions they have access to might be susceptible to breaches.
- Inefficient processes. Aging software can be an impediment to efficient communication and collaboration. These issues can lead to inefficient workflows, document sharing, and version control that can slow down operations and leave companies less competitive.
Businesses considering the use of XaaS solutions should initially perform an audit to determine which concerns are most problematic. The next step is to identify areas where XaaS solutions could be beneficial and search for reliable providers.
Mapping a XaaS Strategy
If, after performing your audit and analysis, you’ve decided that XaaS solutions could work for your company, the next step is to create a strategic roadmap for integrating them into your operations. The plan should include the following elements:
Objectives and Goals
Clearly state the outcomes you hope to achieve, the improvements you expect to make, and the high-level company goals you want to meet. The more specific you can be, the better you will be able to evaluate whether the XaaS solutions you select are working well.
Assessment of Current Infrastructure
Conduct a thorough evaluation of existing IT infrastructure, applications, and systems. Identify strengths, weaknesses, and dependencies to understand the impact of the migration and find areas that might require special attention.
Migration Strategy
Develop a migration strategy that supports the objectives and goals, keeping in mind the state of current infrastructure. Factors to be considered include any downtime that might be necessary, how to handle data migration, the timeline, and potential risks.
Service Providers
Find service providers who can deliver the solutions you need and those who can help with the migration process if needed. When evaluating XaaS providers, consider factors such as service level agreements, data location, disaster recovery capabilities, and customer support.
Migration Plan
The detailed migration plan should outline the tasks required, who is responsible for performing them, and how long each phase of the transition will take. Be sure to include strategies for managing any necessary downtime or service interruptions. Include data migration requirements, integration, and customization.
Communication Plan
Create a communication plan to inform stakeholders, employees, and customers about the migration process. Focus on the positives the transition will result in, rather than the inconveniences. For all audiences, determine ways to collect and address their concerns.
Training
As soon as you have your XaaS strategy in place, determine how you will train employees and help them shift to the new system. Be prepared to address resistance or challenges associated with the migration. Here again, focus on the positives (such as greater efficiency) that the change will bring.
Evaluation
Create a plan to evaluate the XaaS solutions you have implemented and determine what the criteria will be for that evaluation. Use the objectives and goals you created at the beginning of this process as a starting point for this step.
Overcoming Obstacles
The process of adopting XaaS solutions is not always smooth. The following obstacles are some of the most common, so you should be prepared to face and address them:
- Security and privacy. As mentioned previously, XaaS solutions can provide a high level of security for your digital operations and dependable privacy for your customer data. However, some providers have better data security and privacy procedures than others. To address this issue, conduct due diligence with each provider you are considering, making sure they have robust practices in place.
- Vendor issues. Unfortunately, vendor issues can cover a wide range of challenges. One is reliability. Though a company may make certain promises, it may not follow through. Others include vendor lock-in and interoperability. To address the reliability issue, read online reviews or seek other ways to learn the experience of existing customers. For vendor lock-in and interoperability, include clear exit strategies and contract terms that safeguard the organization’s data and enable a smooth transition to another provider if needed.
- Limited customization. Another challenge you might face is limited customization within the XaaS solution you choose. To address this issue, ensure that the vendor you settle on offers the level of configuration options that you need. Try to determine some of your configuration needs upfront and ask potential vendors specifically about them.
- Employee adoption. One of the most difficult aspects of technological change is sometimes the human element. You might have a seamless transition to a new technology but find resistance and difficulty among your staff. To address this issue, start very early to inform employees that the change is coming and what will be expected of them. Provide ample training to learn the needed skills and multiple opportunities to express concerns.
- Cost management. While XaaS solutions are generally more cost effective, they aren’t always. Before you find yourself in a financially precarious position with a service that you can’t afford or that doesn’t provide appropriate ROI, conduct a thorough cost analysis and comparison between XaaS solutions and alternative options, considering both short-term and long-term costs. This exercise shouldn’t be a one-time operation. Instead, regularly evaluate whether XaaS, generally, and the provider you are using are cost-effective solutions.
- Regulatory and compliance issues. Regulatory and compliance is another area in which providers might say they will do something yet not do it. To make sure your company is following regulations and laws, ensure your provider offers proper documentation and supports compliance audits. Collaborate with your legal and compliance team to ensure the vendor you choose aligns with applicable regulations.
Best Practices
Companies that want to adopt XaaS solutions should perform research and ask colleagues about their experience to gather best practices for this process. Let’s review some we’ve already discussed.
- Plan ahead. XaaS solutions in themselves are not an answer to common business problems such as lack of efficiency or overspending. However, these solutions used within the context of an overall infrastructure and software strategy can be highly effective. Therefore, it is important to understand why you want to use the solutions, what they will be used for, and the outcomes you expect.
- Build strong partnerships. In the previous section, we noted some challenges that can come with choosing the wrong XaaS provider. That’s why it’s important to thoroughly vet any providers you are considering and choose those who align most closely with your needs and goals.
- Communicate and train. The importance of training employees and promoting a culture of adoption cannot be overstated. While the technology may be exactly what you need, it is of no use if your employees find it difficult to use or feel that they have not been considered in the decision-making process.
- Monitor performance. The key to success for many company initiatives is to monitor their progress. XaaS adoption is no exception. Here again the importance of careful planning comes into play. If you know the outcomes you expect, you can find ways to measure to learn how close you are and adjust your processes when needed.
- Consider costs. Cost is one of the major reasons to adopt XaaS solutions. So, be very careful about determining the cost of any future solutions compared to those you are incurring now.
The Future of XaaS
As potentially transformational as XaaS might be now, the future holds even greater promise. For example, XaaS providers are extending their offerings to the edge, bringing these powerful computing resources closer to data sources. According to a recent Forbes BRANDVOICE article about the power of XaaS in manufacturing, “With software-driven sensors embedded in them…machines now operate at the intelligent edge, making them part of the digital information flow.”
XaaS solutions are also increasingly incorporating AI and ML capabilities which enable advanced analytics, predictive insights, automation, and intelligent decision-making. Hybrid and multi-cloud strategies are becoming more common as companies combine XaaS offerings from multiple providers, resulting in increased flexibility, redundancy, and workload optimization.
These developments will provide even greater benefits in the future, including enhanced agility and scalability, data-driven decision-making, access to advanced technologies, and improved customer experience. While XaaS capabilities may not be appropriate for every company, business leaders are smart to at least explore the possible advantages they might provide.
