Everything as a Service (XaaS)

Everything as a Service (XaaS)

Everything-as-a-Service (XaaS) is a strategic business model approach that builds on the experience and success of Software-as-a-Service (SaaS). Providers of products and services across almost any sector can use the XaaS approach to respond to customer needs, deliver business benefits, and contribute to a strategy for sustainable growth with competitive differentiation in mind. Organisations deploying such approaches see growth through new customers, increased revenue, improved margins, lower environmental impact, and superior company value. What’s more, XaaS-driven companies have superior valuation multiples to equity market averages for peer businesses. Sector coverage of XaaS deployment includes technology hardware and infrastructure, content providers of audio-visual material, vehicles, utilities, transportation, and telecommunications.  

Customers of XaaS providers pay a subscription fee based on the service term and usage, and, in return, gain access to products and services that previously would have required larger up-front costs and ownership risks. Instead, these customers see smoother cash flows and more flexible consumption of products and services to suit their specific needs. For the provider, the upsides of switching to XaaS are predictability of recurring revenue and the opportunity to extend sales – provided they manage the customer relationship with the customer’s best interest in mind, and with a current appreciation of customer needs through research, communication, and data management.   

There are challenges to making the switch to XaaS in terms of changes to capabilities and the investment required to do so, but, if managed well, XaaS can provide a genuine win-win solution for both providers and customers. 

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