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Today, every product is a service — from a grocery order to cyber security software. Known as Everything-as-a-Service (XaaS), this trend refers to sales models that enable customers to purchase products on demand, with the flexibility of self-service, multiple channel access and payment options.

This consumption model is rising in popularity, with many providers moving from traditional perpetual/term license models to subscription/aaS models. Yet, despite its rapid growth, XaaS companies are still facing mounting challenges in these areas:

  1. Transforming their operating model(s) to realise a true “connected enterprise” to help provide a seamless customer experience
  2. Maintaining their margins while offering competitive pricing and product agility to their customer base
  3. Managing the cost of delivery to remain competitive in the market

These key issues are underscored by the evolving needs of modern consumers who are becoming increasingly demanding about:

  • The experience they want to receive
  • The value they want XaaS providers to deliver
  • Reliability of the product offering
  • The cost structure they would want to commit to
XaaS customers are becoming more demanding

Signals of change

Accelerated by COVID-19, the XaaS sector, which has grown by leaps and bounds over the past two years, is now in the perfect storm of change. Shifts in customer demand, rising competition, regulatory challenges, emerging technologies and economic uncertainties require the sector to move swiftly and strategically to create compelling value for business and consumers.