Everything-as-a-Service (XaaS)—a category of computing that allows individuals and organizations to easily acquire a variety of computing-related services over the internet—is fueling digital transformation.
XaaS can reduce organizations’ workloads and provide quick access everywhere, while remaining cost effective. Companies don’t need to purchase and deploy heavy software and hardware with XaaS because it maintains and builds its own platforms of development.
The XaaS model was born as a result of the elasticity that the cloud offers. More so, XaaS provides an ever-increasing range of solutions that ultimately gives businesses the extreme flexibility to choose exactly what they want tailored for their business, irrespective of size or vertical.
According to Deloitte, 81% of adopters agree that the pandemic has accelerated their organization’s shift to XaaS from traditional IT, and 55% report that the crisis caused their organization to invest more in XaaS than initially planned.
The survey found that the transition from traditional IT to XaaS — already well underway in 2018 — continues to transform the enterprise IT landscape, with the COVID-19 pandemic accelerating this transition. Leaders report that on average, their organizations are spending $20 million on XaaS in the current fiscal year with the overwhelming majority (69%) planning to increase investment in the next fiscal year, by an average of 23%.
The global XaaS market is expected to rise with an impressive CAGR and generate the highest revenue by 2026 according to Fortune Business Insights.
The strength of emerging technologies including cloud computing, 5G, machine learning, AI, and intuitive user interfaces, along with customer willingness to rethink how they consume and pay for products, has shifted transformation from a maybe to a must-do.
The XaaS economy allows anyone to sign up and pay for a service with a flexible subscription and usage model that meets their needs and those of the service provider. Adoption rates by B2B and B2C customers are setting up the XaaS market for a compound annual growth rate of 24% between now and 2024.