Anything as a Service (XaaS)

Posted on: November 11, 2019 | By: Robert Joynt | Uncategorized

What is it?

Everything as a service is a new trend among manufactures and retailers. It is the practice of selling a service when in the past you would be selling the same thing as a product. The aerospace industry uses this practice for engines on airplanes. Instead of investing capitol in an engine for an aircraft you now can pay per hour of use of the engine. This turns a capital investment into an operational expense.

Why is it important?

Anything as a service or XaaS is becoming more and more common in the information technology industry. Internet speeds have increased, thus making cloud computing possible. Your traditional software and hardware choices now include many cloud versions such as cloud ERPs and cloud data storage. The rise of cloud computing allows companies to purchase the services such as server space and database maintenance. This allows companies to buy exactly what they need and not incur unexpected costs for maintenance and space needed for equipment on premises.

Advantage?

In most cases XaaS will help to reduce overall cost of ownership. Companies have the ability to reduce or even eliminate expenses for hardware and maintenance. In addition to cost savings there are other benefits such as security, data sharing in multiple locations and data back-ups. In many cases it is also easier to update or upgrade certain software when you are paying for it as a service rather than purchasing it outright.

Disadvantage?

Bandwidth is always a concern when you are moving massive amounts of data through the cloud. It is important to have a good connection. Security is also a common concern but can typically be mitigated by company providing the service.

 

Please do not hesitate to contact Logan Consulting to discuss your current processes or to explore other ways we may choose to work together.

Logan Consulting is a professional services firm committed to helping businesses improve business processes to get the most from their ERP investments.

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