The Everything-as-a-Service (XaaS) model aims to bring items to a business as they are needed, rather than forcing a business to pay ongoing costs for assets that are not in constant use. This saves capital expenditure, which can be particularly important if the equipment in question is only used sporadically and runs the risk of becoming obsolete before the end of its working life.
The XaaS model makes equipment hire an operational expenditure, so cash is not tied up via equipment to a potentially evolving business model. In a world where business models need to be increasingly flexible, the XaaS concept is better for individual businesses because financial resources are used more efficiently. It is also better for the overall environment because equipment is being better utilised.
As a result, XaaS is now reaching further and has the potential to enhance several sectors well beyond software. The development of cloud computing has meant that the XaaS business model has blossomed over the last few years, with, to name a few, platforms (PaaS), infrastructure (IaaS), and software (SaaS) all being offered successfully, and perhaps now predominantly, as a service. These various strands of technology have come to be encompassed in the XaaS model (which can also be known as Anything-as-a-Service), helping businesses to avoid being saddled with maintenance and upgrade costs or needing to invest in extensive IT support. Maintenance may be part of the pay-per-use model rather than arranged separately, so the customer can have it in a packaged deal upfront, enabling it to focus on its core business instead.
The numbers speak for themselves. A Deloitte study published in 2021 found that the majority of those who responded said that the Covid-19 pandemic had accelerated the adoption of advanced technology models in their businesses. Three-quarters of our respondents report that their organisation already runs more than half of its enterprise IT as-a-service. Over half said that Covid-19 had driven their businesses to invest more in the XaaS model than had been planned prior to 2020. And according to the IMARC Group, the global XaaS market is on course to enjoy a 26% compound annual growth rate (CAGR) during 2021-2026.