The fourth industrial revolution demands enterprises to be agile to adapt to the rapidly changing market demands. Businesses are embracing serviced-based IT, which is XaaS, to gain the sustainability and agility it requires to get a competitive edge in the industry.
Everything- as- a -service has revolutionized business models to procure robust services that help them scale. According to a recent report published by Fortune Business Insights, the XaaS market size globally in 2021 was valued at USD 436.82 billion. The research also predicts that everything as a service market size will scale from USD 545.35 billion to USD 2378.07 billion at a CAGR of 23.4% in the forecast period of 2022 to 2029. However, with such a flourishing market, a few businesses are finding it difficult because XaaS has become complex. Here are a few challenges that enterprises are exposed to in an everything as a service business landscape.
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As enterprises globally leverage XaaS into their business workflows, these vendors are gathering, storing, and processing data from all the clients across all the channels. Leveraging everything as a service into the business workflows enables cloud-based services to ingest, process, and evaluate huge amounts of data. Moreover, data is gathered from multiple sources and stakeholders with their own policies to govern the data. XaaS vendors also have various data centers at multiple locations, which increases the challenges of ensuring data management compliance.
One of the most significant challenges is being compliant with various contradictory laws and regulations and cybersecurity vulnerabilities to the exposed data. It is crucial to set effective governance and compliance policies to ensure data security.
It is a very complicated task to evaluate cloud-based services business evaluations. The XaaS business models vary from traditional ones in various ways. XaaS providers have the opportunity to gain more recurring revenue rather than a one-time purchase. However, a few businesses find it challenging to have higher renewal rates because of their poor customer service. XaaS business models also have to invest in higher maintenance charges that they have to shed from their finances. Cloud-based industries and business investors have their own sets of evaluation models and attribute that they asses the organization’s capabilities on. While evaluating cloud-based business models, decision makers can analyze their churn rates, pricing, cross-sale, and upsell opportunities to accurately evaluate everything as a service business model.
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Cloud-based vendors today have scaled tremendously and have evolved their technologies, tools, processes, and operations to meet market demands. As the market is becoming more complex, businesses are facing a significant talent gap. Tech giants and highly funded unicorn startups are luring top talent with more opportunities, benefits, and paychecks. The C-suite of the cloud-based enterprises should consider implementing the best recruiting, managing, and retaining talent.
Everything- as- a- service vendors have to overcome significant challenges resulting from various sources like existing competitors, agile startups, and top industry players scaling in their total addressable market. With legacy businesses evolving themselves to deliver cloud-based solutions, traditional business models have to consider their intellectual efforts to develop and deploy the technologies. Even cloud-based vendors are exposed to the same risk as the traditional enterprises of IP loss. Many successful XaaS vendors already have embraced sophisticated patent portfolios to secure their intellectual property rights to manage various risks efficiently.
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Nikhil Sonawane is a Tech Journalist with OnDot Media. He has 4+ years of technical expertise in drafting content strategies for Blockchain, Supply Chain Management, Digital Transformation, Artificial Intelligence, Big Data, SaaS, PaaS, cloud computing, Data analytics, Enterprise Resource Planning (ERP) solutions, and other emerging enterprise technologies and trends.With eclectic experience in working and writing about complex enterprise systems, he has an impressive track record of success. Through his specialized knowledge of thoughtful and compelling writing styles, he covers a wide range of topics that delve into organizational effectiveness, successful change, and innovation management.His Commitment to ongoing learning and improvement helps him to deliver thought-provoking insights and analysis on complex technologies and tools that are revolutionizing modern enterprises.He brings his eye for editorial detail and keen sense of language skills to every article he writes. If traveling was free, it would have been difficult to trace him.
