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As-A-Service Business Models

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Internet Technology (IT) is one of the most rapidly developing fields in the world. The range of product development and service provision. With innovations being churned out on a daily basis, it seems like innovators create solutions to problems that consumers were not even aware they had.

Due to this, it’s sometimes hard to keep up with all these new concepts and terminologies. Some of them may range from potentially life-changing innovations to transient or niche trends. However, one relatively new concept which has been making waves within the business world is the as-a-Service (aaS) model.

As-a Service refers to a form of service provision in which the infrastructure used by the customer to achieve the desired goal is owned, maintained, and operated by a separate institution. Therefore, the user merely “rents'' this infrastructure temporarily or as part of a subscription model.

This allows them to enjoy all the benefits without the drawbacks of system maintenance, upgrading, and the cost of acquiring the infrastructure themselves.

While many arguments over the origin of this model exist, there is strong evidence that the rise is at least partly a result of the shift in consumer preference toward
subscription-based services and the gradual decline in ownership of goods and services. In fact, a global study carried out by The Harris Group showed that 57% of the individuals surveyed wished that they could own less stuff.

This shows that in a world where consumerism and the pursuit of material and non-material possessions have been the norm, people were suddenly looking for ways to declutter their lives while still enjoying all the services they have come to expect over the years. Some other issues, which seemed to have contributed to the general decline in ownership, are the growing dissatisfaction with the ever-decreasing time between innovation and obsolescence, as well as the financial burden of the upfront payments associated with ownership.

In this article, we will take a deeper look at the aaS business model, the merits, demerits, features, and the future of the business model.

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