o you remember when software-as-a-service (SaaS) was brand-new? Back then, it was considered novel to take all of a company’s software packages and move them into the cloud, then offer them via subscription. How things have changed. The ‘as-a-service’ model has come a long way since SaaS.
You might go as far as to say that the model has turned business upside down. How so? By encouraging entrepreneurs to look at turning just about everything into a service. For example, SaaS is very much yesterday’s news. We have access to so many other services:
- Infrastructure-as-a-service (IaaS)
- Platform-as-a-service (PaaS)
- Desktop-as-a-service (DaaS)
- Due diligence-as-a-service (DdaaS)
- Project management-as-a-service (PmaaS).
These five examples barely scratch the surface. If you can dream it up, you can probably offer it as a service to someone. The emergence of this new business model has led to some significant changes in the way companies get things done.
A Lot More Outsourcing
Right off the bat, as-a-service opens a wide door to outsourcing. Take Georgia-based Janiko Group. They offer PMaaS. They work as an outsourcing partner with clients who need help managing projects of all scopes and sizes. They can be a long-term outsourcing partner or offer their services on-demand.
Outsourcing offers key benefits, not the least of which is allowing companies to maintain their focus on core products and services. They are not experts in that field. Outsourcing gives them access to experts without having to become experts themselves.
More Small Business Opportunities
Companies of all size depend on as-a-service vendors. More often than not, those vendors are businesses with fewer than five hundred employees. A fair number of them have fewer than a hundred employees. Knowing that, it is reasonable to conclude that the as-a-service economy has given rise to new small businesses that otherwise would not have gotten off the ground. This is a positive thing in the sense that small business is the foundation of our economy.
More Opportunities for Specialization
Some of the most successful business professionals adhere to the principle of doing one thing and doing it well. In that sense, the as-a-service model has provided more opportunities for specialization. Enterprising business owners capable of seizing a particular need can become experts on that need. That gives them a leg up.
The other side of the coin is being able to choose specialized vendors to provide necessary services. For example, consider a law firm looking for a new case management platform. There are a small number of tech companies who specialize in that very thing. They don’t do anything else. The law firm benefits from access to a specialized platform without having to hire a general software developer who may or may not understand the legal industry.
Rethinking Business Processes
Perhaps the most profound effect the as-a-service model has had on modern business is forcing companies to rethink their processes. For example, consider IaaS. Prior to IaaS being a thing, companies invested heavily on computer equipment, networks, and the like. They had to hire staff to deploy and maintain their infrastructure. And every few years, investments in new equipment were necessary.
IaaS offers infrastructure on a subscription model. Companies pay a monthly fee to access only what they need. The vendor handles everything else. By turning that business process on its head, the company saves time and money. As-a-service is simply a better way of doing things for them.
The as-a-service model has turned business upside down. It has done so in a good way. That’s why we are seeing so many new services emerge.