Over the last two decades, the as-a-Service model has revolutionized how technology resources (software, platforms, infrastructure) are provisioned and consumed. From a consumption perspective, there has been a rapid migration to on-demand environments that can be provisioned through self-service, with elasticity to allow rapid scaling and ubiquitous availability through multiple access channels and with billing flexibility.
To cater to this rise in demand, there have been many born in the cloud providers emerge as market leaders in their respective category segments and you can continue to see a large number of providers move from perpetual/term license models to subscription/as-a-Service models. The success of this operating model in the technology world, has also given rise to companies in a variety of other industries adopting this model.
This trend is called Everything-as-a-Service (“XaaS”). Despite this rapid growth, XaaS companies are still highly challenged by three key issues:
- Transforming their operating model(s) to realize a true “connected enterprise” to help provide a seamless customer experience
- Maintaining margin whilst offering competitive pricing and product agility to their customer base
- Managing the cost of delivery to remain competitive in the market.
In this point of view, you can explore the critical signals of change currently influencing the XaaS industry and how XaaS companies might address the three challenges outlined above.
Signals of change
KPMG Connected Enterprise
KPMG professionals can help you harness technology to build a connected enterprise. That's an enterprise where your front, middle and back offices are aligned. An enterprise where you're more connected with your customers, employees and business partners. An enterprise that enables you to respond quickly to market signals and pivot to seize opportunities as they arise.
KPMG Connected Enterprise is a digital transformation approach, it’s industry-specific, and customer-centric. It helps focus every critical process, function, and relationship of a business on meeting customer expectations, creating business value and driving sustainable growth in a digital world.
Organizations that invest purposefully in these capabilities are twice as likely to meet customer expectations, achieve their objectives and deliver return on investment.
You can discover how connected your organization is by using the diagnostic tool. It assesses you against industry best practice and highlights the opportunities and challenges that may affect your ability to become a connected enterprise.
Strategic solutions for your business
The global technology landscape is continuously evolving. Disruptive technologies and new business models are re-defining or even converging industries and causing re-evaluations of enterprise value. Market leadership depends not only on innovative thinking but on the ability to monetize new technology.
KPMG professionals can help technology leaders navigate today’s pressing business issues including the expanding reach of platforms, customer and revenue growth, digital labor and cognitive automation, autonomous vehicles, data and analytics and blockchain/digital ledger services.
Learn more here or contact a KPMG professional who is ready to help you address new challenges and drive growth.