XaaS (anything as a service) is a way of delivering and selling an organization’s offerings — such as hardware, software or solutions — not as a one-off product but as an ongoing service that can be charged to customers in various ways, including on a consumption, outcome or subscription basis. The top challenges for the transition to XaaS models have shifted since 2019, from proving the value proposition to customers, to now building integrated product strategies and activating go-to-market changes in marketing, channels and sales.
Technology, media and telecommunications (TMT) companies across the world are switching to selling their offerings using XaaS subscription and consumption models. It’s a seismic shift that can generate dramatically higher value — but which also requires profound change throughout the business.
The scale and speed of the industry-wide move to subscription-based XaaS models showed it was accelerating three years ago, when the EY organization conducted a global study of TMT companies. Since then, however, the landscape has continued to undergo dramatic change, with rapid advancements in technology and a vast expansion of tools available to enable and operate XaaS models.
As a result, the migration to XaaS in TMT has expanded, while also starting to expand to other industries. To gauge the speed and extent — and future direction — of XaaS adoption across and beyond TMT, the 2019 EY survey was updated by conducting new research in August 2022, questioning 1,200 respondent organizations across multiple regions, business models, sizes and sectors about their current and future XaaS adoption.