What is Technology As A Service (TAAS)
What is Technology-as-a-Service?
With the rise of cloud computing, more and more users are considering thinking outside of the box for on-premises technology. What Technology-as-a-Service (TaaS) essentially means is that through the use of cloud-based services, users can transfer all of their processes being handled onsite to the internet. This is obviously a large undertaking, that involves all stakeholders and requires transferring all your vital data to the cloud, training your employees, and getting customers onboard. This is where TaaS can help customers make the shift to the cloud with the help of IT service providers. Your tech services then become a maintenance expense like a utility bill. You get all your data and tech needs serviced and supported by upgrades and professional help while running your business without robust infrastructure or massive expenses. TaaS providers develop and own proprietary technologies, which means that users can benefit from new updates and improvements as soon as they become available. By using a TaaS provider, companies can use services without full ownership of the assets. Services can also be customized for the customer or business’s specific needs. TaaS is on-demand, which means that specific resources or functions can be tapped into whenever your company requires it. Being on-demand, a big relief on the budget occurs with TaaS when compared to owning and managing proprietary technology that requires overhead and maintenance costs due to TaaS services only being charged when used. TaaS services are usually delivered by a system involving devices or machines, data, software applications, people, and processes. This often means freedom from physical location constraints and increased ease of scaling operations.
How TaaS can Benefit Companies and Customers?
Both service providers and their clients can see that TaaS has created an incredible opportunity. It allows customers to access technology and tech services on-demand, which means that clients do not need to make substantial purchases of large technology resources. Eliminating some big expenses means that as needs change, the access to services can be quickly scaled up or down depending on demand. Utilizing TaaS, businesses are already seeing benefits including nearly universal, high-speed optical fibers and broadband, simple payment solutions, affordable data storage, micro-services, and growing acceptance of subscription-based models. These changes have created an environment where platforms and services can be fully moved out of physical expensive to maintain data centers, into reliable and efficient server data centers that host the cloud. In many companies that offer technology products, TaaS can even benefit them by allowing the tech itself to move to the cloud. Buyer behaviors keep changing and customers are buying fewer and fewer boxed software products and instead relying on tech services that allow them to scale their specific usage with a low-cost of entry. Similarly, IT service providers can consider the TaaS model because it can offer them the ability to add features and send automatic updates to users, all the while capturing recurring revenue and making business more predictable. This represents a tremendous advantage for IT service providers who use TaaS in terms of increased flexibility and scalability.
TaaS Means Revamping Much of Your Business
While all of the above can be extremely beneficial, making the shift to a TaaS model is not easy for either customers or suppliers. If you want your company to migrate critical functions to TaaS, you will have to restructure your offering to take advantage of efficiency and cost gains that micro-services or containers may provide. Cloud providers such as Amazon Web Services and Microsoft Azure provide a sensible scale-out alternative to traditional data centers. Aside from this, you will also need to remodel your business from reduced redundancy and increased scalability. Note that your entire organization will be impacted, well beyond the IT and developer teams, if you are considering making the shift to a TaaS offering. Your services team will be looking at reshaping its approach to solving customers’ issues. It will more than likely affect the structuring of compensation for sales teams, and your finance team may have to investigate new revenue recognition models. More than likely, every aspect of the business will be affected, from IT to marketing. Nevertheless, TaaS is expected to become the dominant model for commercial use of technology. More and more companies in diverse sectors such as solar and 3D printing are turning to TaaS to go to the market. Established businesses like Siemens and General Electric are migrating their monitoring/diagnostics technologies into a TaaS models. This trend is expected to continue as more companies start recognizing the benefits of TaaS and what it can offer them.
Interested in moving your business to TaaS? Contact Radiant Technology Solutions today for a free consultation.