The “as-a-service” model is a Flexible Consumption Model (FCM) also know as “XaaS” which means anything or everything as a service. This model means customers now have access to payment options allowing them to buy products and software as a service. Why do we like it? It’s customer-centric; it focuses on our customers’ requirements rather than the more traditional product life cycle in a more conventional business model. We think this makes us best suited to deliver the value our customers expect.
It is a highly effective use of capital for customers because the vendor bears the cost of the capital infrastructure. What is also relevant is that the hidden costs of software, such as training, downtime, licenses, hardware, installation and maintenance costs are now a “known” through a monthly or annual fee, contractually defined. As we have seen this year, the physical location of data no longer matters, so long as it is secure and protected. Information is exchanged regardless of disparate geographic locations as if all systems were on the same server. This dramatic shift in the way the world now works should mean that the as-a-service model is more readily understood and accepted as a confident and sensible move to the future of doing business. Getting rid of the distractions that do not fit with a customer’s core focus is the impetus behind this model together with the reliability promise of uptime guarantees.
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