Why Everything As a Service (XaaS) is the Future of Business

 why everything as a service is the future of business


Key highlights

  • The global Everything as a Service (XaaS) market is projected to grow from USD 436.82 billion in 2021 to USD 2,378.07 billion by 2029, at a CAGR of 23.4%.

  • The COVID-19 pandemic accelerated the demand for advanced technologies such as cloud computing, AI, machine learning, and others. In 2022, the global everything as a service market will grow by 7.4%.

When the Covid pandemic hit, the business world was caught off guard. The concept of working from home, though a growing trend, was not something the big corporations thought would ever become the order of the day. As it became clearer that working from the office had changed to the distant horizon, companies scrambled to deploy digital tools like laptops, secured internet connections through VPN, and other digital tools necessary for employees to get on with their work from home. 

What do you think made all this possible in record time? 

Digital Technology.

It would be an exaggeration to presume that we are on the cusp of the fifth industrial revolution. From the 17th to the 21st century, we have come a long way in terms of technological innovations. In fact, a lot has happened in the last two decades since the dot come bubble of the early 2000s. 

And all this development is culminating in a service ‘revolution’ fuelled by the internet – towards a time when so many things will be offered  as a service. To be more specific, this newfound service model, propelled by cloud computing, mass data storage, mobile technologies, and artificial intelligence, has brought about such a huge digital transformation we are now forced to rethink how we work and live. 

XaaS Market Size and Growth Projections

 According to Fortune Business Insights, the global XaaS market grew at the rate of 7.4% in 2020 as compared to 2019.

The report analysed services delivered by the tech giants IBM Corporation, Cisco, Oracle, , Alphabet, Microsoft, AWS,  and more. 

All these players offer mainly Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and/or Software as a Service (SaaS).

Boost in Digital transformation: As per a recent IDC report, the global spending on digital spending touched USD 1.49 trillion in 2021 and is expected to hit USD 1.8 trillion by 2022, marking a  21% increase. 

The Real Impact of Covid on Digital transformation and XaaS growth

Several enterprises adopted the XaaS model to digitize their business processes during the COVID-19 pandemic. The XaaS model helped organisations smoothly transition into the work-from-home model and helped boost productivity and employee experience.

The pandemic provided a massive impetus to the growth of everything as a service. The demand for cloud computing, machine learning, AI, and other technological solutions witnessed a 7.4% growth compared to 2019. 

Revenue-wise, the pandemic-driven increase was worth USD 349.32 billion in just 2020.

Rising XaaS Types

IoT as-a-service and artificial intelligence as-a-service are gaining popularity due to the rising adoption of AI technology and IoT devices. Furthermore, enterprises are developing AI-driven and cloud-based services for gaining data-driven valuable insights using natural language processing and machine learning.

Healthcare end-users are expected to grow with the highest CAGR during 2022-2029, primarily attributed to the rising adoption of XaaS in the healthcare sector.

The Global Shift

Organizations around the globe are rapidly shifting their workloads into cloud-based platforms from the traditional IT infrastructure. Cloud-based services help enterprises improve customer engagement, enhance business operations, and help reduce overall costs.

The Largest Share

Software as a service (SaaS), has the largest share owing to a surge in the adoption of  SaaS platforms among IT, telecom, and Banking, Financial Services and Insurance (BFSI)  sector enterprises. Storage as a service is expected to grow with the highest Compound Annual Growth Rate (CAGR), during the forecast period. Large enterprises are expected to have the biggest global market share owing to the increasing adoption of cloud-based SaaS, PaaS, and IaaS platforms by the leading players.

The global Everything as a Service market (XaaS), is projected to grow from $545.35 billion in 2022 to $2,378.07 billion by 2029, at a CAGR of 23.4%.


To sum Up

The business world is moving towards transformative digitalisation fuelled by XaaS trends. 

This transformative new era will be defined by massive digitalisation and will be disruptive to existing businesses. It might as well destroy many legacy businesses and create new models of business.

To compete in this new era, businesses have to embrace change by adapting fast to new business models. And one of the ways they can do so is by embracing XaaS. 

The world is changing faster than we realize.  This shift is already happening today and it will continue to accelerate for years to come.

The question is, are you ready to join the service revolution?











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