As-a-Service Business Models

As-a-Service
Business
Models
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SUPER GUIDE:
As-a-Service
Business
Models
BY DANIEL PEREIRA

© THE BUSINESS MODEL ANALYST
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Daniel Pereira
The Business Model
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Copyright © 2022 Daniel Pereira
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ISBN: 978-1-998892-17-4

TABLE OF CONTENTS
Introduction 9
What Are As-A-Service Business Models? 11
Related Concepts To The As-A-Service Business Models 15
Cloud Computing 15
History 16
The Deployment Models 17
Public Clouds 17
Private Clouds 18
Hybrid Clouds 18
The Internet Of Things (Iot) 19
Iot Brings In The Newer ‘aas,’ But It Is Not For
Everyone 19
What Do The Service Providers Require? 20
How An Iot As-A-Service Business Models May Work
Through Predictive Scenarios 20
Types Of As-A-Service Business Models 22
Software-As-A-Service (Saas) 22
Data-As-A-Service 23
Iaas 24
Platform-As-A-Service (Paas) 24
Mobility-As-A-Service 25
Blockchain-As-A-Service 26
Iot-As-A-Service (Iotaas) 26
Steps And Clues To Use As-A-Service Business Models 27
3 General Stages Of An Aas Business Model 27
The Early Stage 27
The Growth Stage 28

The Mature Stage 28
Critical Success Factors For Servitization Success 29
Business Strategy 29
Customer Journey Engineering 29
Enterprise It Renovation 29
Talent And Mindset 31
Making The Pivot To As-A-Service Experiences 31
How To Develop An Aas Business Model? 33
Develop Your Business Model Canvas 33
Filling In Your Business Model Canvas Template 34
Value Propositions 34
Customer Segments 34
Distribution Channels 35
Customer Relationships 35
Revenue Streams 35
Key Activities 35
Key Resources 35
Key Partners 36
Cost Structure 36
Find A Niche 36
Define Your Positioning, Market, Competitors 37
Identify Tech Stack 37
Choose A Pricing Strategy 37
Assemble A Development Team 38
Release A Product 38
Metrics For An Aas Business Model 39
Customer Acquisition Cost (Cac) 39
Lifetime Value (Ltv) 40
Monthly Recurring Revenue (Mrr) And Annual Recurring
Revenue (Arr) 41

Churn Rate 43
Retention Rate 44
Valuation Of As-A-Service Business Models 46
Revenue Multiples 46
Seller's Discretionary Earnings (Sde) Multiples 47
Ebitda Multiples 48
Other Factors To Consider When Valuing A Saas Business
49
Customer Acquisition Channels 50
Product Lifecycle 50
Technical Knowledge 51
Competition 51
Age Of The Company 51
Owner Involvement 52
Growth Trends 52
Cases Of As-A-Service Business Models 54
Original Equipment Manufacturer (Oem) 54
Rental Or Lease 54
Business-To-Business (B2b) Or Business-To-Consumer
(B2c) Models 55
Advantages Of As-A-Service Business Models 56
Recurring Revenue Stream 56
A Dedicated And Engaged Customer Base 56
Predictive Instead Of Reactive System 56
In-Depth Customer Data Analytics 57
Lower Costs 57
Flexibility & Scalability 57
Free Upgrades 57
Mobility 57
Installation Speed 58
Disadvantages Of As-A-Service Business Models 59
Difficulty In Making The Shift To Aas 59
Requires More User Engagement 59
Increased Product Complexity 59
Security Requirements 60
Higher Operational Costs 60
Conclusion 61
References 62
About The Author 68

INTRODUCTION
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.

WHAT ARE AS-A-SERVICE
BUSINESS MODELS?
The as-a-Service business model is an emerging business

structure that pioneered a shift from the traditional model of
product ownership, to a more fluid customer-merchant
relationship, where the consumer merely “rents” or obtains
temporary ownership of the product or infrastructure required
to provide the service.
This represents a shift from the stereotypical

“goods-centered” way of thinking to one that is more
“service-centered” and “customer-centric”. This means that
most organizations are now taking the role of
“value-facilitators” instead of being only “value-producers”.
Another popular way of referring to this sort of business

model is as Anything-as-a-Service (XaaS). This refers not only
to the numerous known subsets of this type of business
model, but also to the countless possible areas that it can be
applied. Some popular examples include:
● Software as a Service (SaaS);
● Communications as a Service (CaaS);
● Network as a Service (NaaS);
● Platform as a Service (PaaS);

● Database as a Service (DBaaS);
● Infrastructure as a Service (IaaS);
● Storage as a Service (StaaS);
● Disaster Recovery as a Service (DRaaS);
● And so on.
There are several reasons why the popularity of XaaS has

increased in recent years, each with its degree of
responsibility. Some of these reasons are more closely
associated with the consumer, while others are driven by the
businesses themselves. Let’s take a look at some of the most
prominent factors driving this push towards non-ownership
service provision.
● The increased convenience of a pay-as-you-go

model: Convenience and flexibility have always been
one of the driving forces behind consumer
decision-making. The advantages of a
consumption-based pricing model to the consumer are
clear. It enables them to take advantage of only
features that they feel are relevant, it improves
customer satisfaction by allowing them to directly
equate value to cost, and of course, it promotes
pricing and budgetary control, since the total cost is
directly related to the consumption of the product and
is therefore predictable;
● aaS models are more resistant to economic

downturns: Recent data obtained during the global
pandemic in 2020 by the Technology Services
Industry Association in a survey among companies
showed that 50% of companies whose primary
business model was built on product sales saw a
significant downturn in bookings/sales. In contrast,
only 23% of firms with a business model based on
selling recurring services experienced this same level
of sales reduction. This showed the relative resilience
of service contracts to product sales during times of
economic hardship;
● Increased scalability: AaS models are typically more

flexible than product ownership-driven businesses in
the area of scalability. Their services can be closely
tailored to the specific requirements of the customer,
taking into account their unique circumstances. This
allows them to easily and cost-effectively scale up or
down these services in response to the constantly
changing requirements of their clients and the current
business environment;
● Reduced consumer liability in terms of infrastructure

purchase, maintenance, and improvement: This point
can be more effectively illustrated using
Database-as-a-Service (DBaaS). To many consumers,
the cost of purchasing and maintaining a database can
be quite high, both in terms of money, time, and
manpower. This is especially true when it involves
businesses or individuals who deal with significant
amounts of information. However, employing the
services of a DBaaS company not only saves you a
significant amount of cost, but also allows you to
increase efficiency by leveraging on their expertise
and comparative advantage in that particular field due
to economies of scale;
● Better suited for supporting a remote workforce:

Another important point that was made more
prominent during the global pandemic was the fact
that a significant number of aaS models are better
suited for remote work. This may be due to the fact
that most aaS subtypes are more intimately related to
the IT industry, which as a whole is more favorable for

remote work;
● Cost-effective for businesses to optimize and sell:

One of the key advantages of aaS models is their
comparative price advantage due to a lower total cost
of ownership (TCO). This implies that the operational
costs of such a business model are lower due to the
fact that they can leverage their expertise in the field
and the relative advantage of economies of scale. This
cost advantage is then passed to customers as lower
prices for their services help to attract more clients.

RELATED CONCEPTS TO
THE AS-A-SERVICE
BUSINESS MODELS
In the previous section, we discussed the aaS business

model, what it entails, and some of the driving forces behind
its increased popularity. Now, let’s take a look at two
concepts that are intimately related to the aaS model, cloud
computing and the Internet of Things (IoT).
Cloud Computing
Cloud computing refers to the delivery of availability of
various computing services over the internet without direct
active management of these computer resources by the user.
Some popular computer service resources which are
included under this include data storage, analytics, computing
power, databases, networking, IoT, software, and so on.
In a nutshell, this means that the user has access to all or a

certain range of services without having ownership or direct
responsibility for the maintenance of the infrastructure
required to support these services. This infrastructure is
rarely centralized, both in terms of location and function. In
many cases, these data centers and services often have
functions distributed over multiple locations separate from
the central servers.
From the above, the link between asS and cloud computing is
quite clear. Many aaS services are used as part of the cloud
computing ecosystem, such as SaaS, IaaS, DBaaS, NaaS,
StaaS, and so on. Therefore, without the innovation of the aaS
model, cloud computing would not be possible.
History
The use of the word “cloud” with reference to virtualized data
models dates back to 1993, when it was used by General
Magic (a spin-off of Apple) and AT&T. It was used to describe
distributed computing services with respect to their Telescript
and PersonaLink technologies. While this was significantly
different from what we take as cloud computing today, it was
one of the earliest instances of distributed computing
services
This idea was built on similar earlier concepts such as the

concept of time-sharing, which was mostly associated with
large vendors, such as IBM and DEC in the 1960s, through
the practice of Remote Job Entry (RJE).
Another significant milestone in the early iterations of cloud

computing technology occurred in the 1990s through the
creation of virtual private networks (VPNs) by
telecommunications companies. These allowed for more
efficient use of bandwidth and promoted the concept of
remote work, as users could access the services of a public
network from a private terminal without being directly
connected to the network. This also saw the creation of the
characteristic “cloud” symbol by these companies as a
division point between what users were responsible for and
what the provider had responsibility for.
In the early 2000s, Amazon rolled out a range of services that

were based on IaaS models and had the primary goal of
providing internet services at a cheaper rate, using a
pay-as-you-go model and based on the idea of server
virtualization.

In 2008, Google rolled out the Google App Engine. This was
a PaaS that allowed users to create web applications using
common programming languages, such as Python, PHP, and
Node.js. The infrastructure and platform were fully managed
by Google, and this encouraged easy deployment and
upscaling of these applications, as more financial resources
and manpower could be devoted solely to product
development.
The Deployment Models

A cloud deployment model refers to a particular type of cloud
computing environment. These are often distinguished based
on ownership, size, and access. The three major deployment
models include public clouds, private clouds, and hybrid
clouds.
Public Clouds
In public clouds, the infrastructure and other relevant
resources are fully owned by an organization that sells these
services to the general public or a large organization, either
using a subscription-based model or at times free of charge.
These services are usually accessed over the public Internet

and typically allow users to directly link their cloud-resident
applications to the data centers and servers of the public
cloud providers through direct-connection services. Some
popular examples include Amazon Web Services (AWS),
Azure (Microsoft), and Google Compute Engine.
There are several merits and demerits to this deployment

model. Some of the benefits include a high degree of
scalability, cheaper prices, a more efficient disaster recovery
system, and a more reliable framework. However, despite all
these advantages, there are some significant limitations of

public cloud servers. Security, lack of dedicated support, poor
internal monitoring, and a minimal understanding of the
back-end infrastructure are some of the key ones.
Private Clouds
Unlike public clouds, private clouds make use of
infrastructure and resources created solely for a single
organization. These resources may be managed by the
cooperation itself or by a third party on the behalf of the
organization.
There are several obvious advantages to this system. One of

which is increased performance, availability, and control since
the system resources are tailored to the peculiar
requirements of the user. There is also increased security and
flexibility.
One of the demerits of this system is that managing it

internally still requires a hands-on approach, which defeats
the purpose of using an aaS. Another issue is that the cost of
maintenance and upgrading will be borne by the user,
leading to high capital expenditure. Also, the resource use in
terms of physical footprint, hardware, space, and
environmental impact is higher due to the fact that all these
resources cater to only a single user. There are also issues
with scalability, flexibility, and the inconvenience of reduced
remote access.
Hybrid Clouds
A hybrid cloud is a cloud computing service that combines
the features of public clouds, private clouds, and other forms
of cloud deployment models. This can be a wide range of
possible combinations, but the common feature is the fact
that it cannot be comfortably placed in a single category. This
allows it to leverage the different advantages of each
deployment method, but may also leave them exposed to
some of their shortcomings as well.
There are some other lesser-used cloud deployment models,

such as community clouds, distributed clouds, multi-cloud
systems, big data clouds, and so on.
The Internet of Things (IoT)

The Internet of Things (IoT) can be defined as a term used to
describe a range of physical, interrelated technologies that
can connect and communicate over the internet or more local
networks. These objects possess a range of sensors,
software, processors, and other technology, which allows
them to receive information and interact with their
environment, as well as with each other.
In the consumer market, they are mostly seen in a range of

“smart” products, such as smart homes, smartphones, and
smart speakers, with as many as 50 billion connected devices
being estimated by 2020. However, their use includes a
much wider range of applications. Some of these include
areas such as the Internet of Medical Things (IoMT),
transportation, manufacturing, agriculture, and so on.
Despite the success of IoT and the value it has added to the
XaaS as a whole, it does have a few key criticisms. These
include complaints of fragmentation and lack of
interoperability, threats to privacy, security, and user
autonomy, data storage challenges, intentional obsolescence,
environmental sustainability, and so on.
IoT Brings in the Newer ‘aaS,’ but it is Not for Everyone

Even though the Internet of Things-as-a-Service (IoTaaS) will
be more extensively described later, it’s important to mention

the vital link between IoT and XaaS. The rise of IaaS has led
to new business model innovations in industries that have
traditionally thrived off the product sales model.
The use of IoT now allows companies and users to accurately

measure how often the connected device was utilized, and
therefore encouraged a pay-as-you-go model. This allows for
more efficient resource consumption, a better cost-to-value
comparison, and a reduced maintenance burden.
Companies like Rolls-Royce, John Deere, and Michelin have

been able to utilize this in a wide range of products, by
integrating various levels of IoT within their products and
changing their business model to a subscription-based aaS
model.
For example, Rolls-Royce has championed the use of IoT

through the installation of Engine Health Monitoring devices
and performance trackers in their jet engines. This allows
these engines to be “rented” by the airline, and the cost is
charged at a fixed rate per hour used. Another good example
would be rented forklifts, which are charged according to the
number or weight of objects transported.
What Do the Service Providers Require?

The high demand for IoTaaS means that Service Providers
must be ready to provide for the wide range of consumer
needs. This means significantly upscaling their end-to-end
capabilities across hardware, software, network capabilities,
and data storage. This means offering both general solutions
and client-specific options through increased expertise,
beneficial ecosystem partnerships, and strong solutions.
How an IoT as-a-Service Business Models May Work

Through Predictive Scenarios
Through the use of IoT, both service providers and users will
be able to better estimate the quality of the services they

receive, not just the quantity. This will lead to a better
cost-value comparison since it is outcome-based. That means
calculating the cost of an automated cleaning service device
based on how well it performed a task — for example,
cleaning a particular area —, rather than just based on the
size of the area it cleaned.

TYPES OF AS-A-SERVICE
BUSINESS MODELS
The aaS business model is also commonly referred to as

Anything-as-a-Service (XaaS), which refers to the wide range
of possible applications of this business model. Here we’ll
take a look at some of the popular aaS business models.
Software-as-a-Service (Saas)
Software-as-a-Service (SaaS) is an aaS business model built
around the concept of providing software resources and
services through a subscription-based model. This means
that the software resources and infrastructure are centrally
hosted, but can be accessed by the user through the internet,
an app, or a browser. SaaS is also referred to as on-demand
software, Web-based, or Web-hosted software.
It is an integral part of the cloud computing ecosystem and is

closely associated with other aaS models, such as
infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS),
data center-as-a-service (DCaaS), information technology
management-as-a-service (ITMaaS), and so on.
SaaS business models are commonly seen in services such

as messaging software, payroll software, booking software,
various forms of office software, human resource
management, and so on.

Some of the key advantages of this form of software delivery
include:
● Increased flexibility: It can be customized to the

individual requirements of the user, without them
having to purchase the actual software;
● Reduced cost: The software is usually cheaper in the

long run because the cost of maintenance, upgrading,
and upscaling is borne by the central host;
● More frequent upgrades: SaaS services are more

frequently updated than traditional software delivery
models, typically on a weekly or monthly basis.
Data-as-a-Service
Data-as-a-Service (DaaS) is another aaS model which is
closely associated with computing. It refers to a cloud-based
data management software such as data storage and
analysis. These services are provided on an on-demand basis
and the infrastructure is not owned by the user.
The increased customization of DaaS services through the

use of application programming interfaces (API) services and
service-oriented architecture (SOA) allows for more specific
services. The most common pricing systems used with DaaS
models include a quantity-based pricing model (based on the
amount of data involved) and the data type base model
(based on the type of data involved).
Some of the common benefits of DaaS include

cost-effectiveness, increased flexibility, greater data handling
services due to economies of scale, and greater expertise.
Another advantage is the fact that the user does not have to

bear the responsibility of storing the data, especially where
large amounts of data are involved. However, it has received
criticism due to the risk of large-scale data security attacks,
data piracy, and even copyright infringement.
Iaas
Infrastructure-as-a-Service is a form of aaS which offers cloud
computing services, such as data partitioning, data storage,
computing, networking, and servers. IaaS operates through
the use of APIs to handle the most basic or rudimentary
aspects of data computing, utilizing pay-as-you-go cloud
services. These services are provided using an on-demand
model and some good examples include Microsoft Azure,
Rackspace, Digital Ocean, Google Compute Engine, and so
on.
IaaS is closely related to other key pillars of cloud computing

such as SaaS and PaaS, however, there are several key
differences. In SaaS, almost all the key components of cloud
computing are handled by a third party, while the user only
obtains temporary access to these services and
infrastructure, typically via an internet connection. However,
in IaaS the operating system, applications, data processing,
and middleware are handled by the user, while other services
like the ones listed above are within the control of a third
party.
Platform-as-a-Service (PaaS)
Platform-as-a-Service is an intermediate between IaaS and
Saas. It offers a large degree of on-demand computing
services, however, some key functions — such as application
and data analysis — are still within the control of the user. The
main function of PaaS service providers is to help users
accelerate the creation and deployment of software
applications at a reduced cost and with less complexity.
Some of the advantages of the PaaS model to users include

lower costs and complexity, accelerated product deployment,
enhanced scalability, a reduction in the amount of coding
required, and increased exchange of knowledge between
developers.
There are also some advantages of PaaS to the parent

business as well. It encourages the migration of customers
into allied cloud computing services such as IaaS and creates
a space for developers to interact with core tech offerings.
Mobility-as-a-Service
Mobility-as-a-Service is a revolutionary innovation to the
traditional models of mass transit. It involves the use of
“smart” technology and IoT technology to operate a fleet of
vehicles that can be temporarily leased on a pay-as-you-go
model or via a monthly subscription. There are several
advantages to the widespread adoption of MaaS. These
include both the environmental advantages, public
convenience, and cost.
MaaS is a new technology and offers various market

opportunities, such as its impact on suppliers and consumers.
Even though barriers to the widespread adoption of the
technology have not yet been fully enunciated — such as
insurance, widespread feasibility, and even consumer
involvement —, there is significant interest in the field.

Blockchain-as-a-Service
Blockchain-as-a-Service is a cloud computing service that
offers various blockchain-related solutions through various
third-party service providers. This helps in the integration of
blockchain solutions into existing business structures,
especially for businesses that lack the technical knowledge,
time, or financial resources to fully create and implement
these solutions on their own. These companies pay
third-party to design, implement and maintain various
blockchain technologies. Examples of such companies
include Azure, Corda, AWS, Alibaba, IBM, and Oracle.
IoT-as-a-Service (IoTaaS)
The introduction of IoT into the aaS model has long been
discussed. However, this will require significant restructuring
of the way the system currently operates. First of all, the shift
from a one-time transactional model to a long-term
commitment is a significant challenge. Also, the lack of
widespread interoperability amongst different brands may
pose a significant challenge as well. However, these are
offset by key advantages, such as lower upfront costs and an
improved cost-to-value ratio.

STEPS AND CLUES TO USE
AS-A-SERVICE BUSINESS
MODELS
Let’s take a look at some of the general steps and tips

involved in building an aaS business model.
3 General Stages of an aaS

Business Model
There are several general steps involved in building an aaS
business model. We’ll be using a SaaS business as an
example since it most completely embodies the core
principles of a SaaS business. Broadly, these steps can be
classified into three main stages.
The Early Stage

This starts from the earliest stage of the business
development, even before the first line of code is written or
the first piece of hardware is purchased. The initial steps that
any potential business should undertake should be a
potential need in the market that either has not been
addressed or a solution to a problem that they believe can be
improved upon. After developing smart solutions to these
issues, the next step is creating your minimum viable product
(MVP).

An MVP is a form of your aaS product that offers only the
most basic functions. The basic uses of your MVP include
creating a prototype product that can be displayed to early
investors, creating publicity for your brand and product,
obtaining continuous feedback by testing various iterations of
the product, and even discovering other potential
applications of the technology.
The Growth Stage

This is the stage of product release and massive upscaling.
This involves leveraging on the publicity hopefully created
through the MVP and the early advertising campaigns. It is
very important at this stage to upscale your resources rapidly
to ensure you are able to keep up with the demands of your
increasing user base. This includes increasing bandwidth,
human resources, data storage, and other key resources.
Failure to do this may damage your reputation, something
you cannot afford at this early stage.
Some companies may decide to enlist the help of startup

incubators or startup accelerators. These are firms that offer
services such as management training, funding, and even
office space to startups to help them navigate the early
stages of growth. They may also seek additional assistance
from venture capitalists or angel investors.
The Mature Stage

Growth at this stage is not as rapid as in the previous phase.
The mature stage involves mainly consolidating your loyal
customer base, ensuring that you provide the best services
through constant innovation, and maintaining a steady rate of
growth.
This is the time to discover the services which matter the

most to your customers and improve on them. It’s also an
opportunity to gather data from your user base and innovate

new solutions.
Critical Success Factors for

Servitization Success
Business Strategy
A solid business strategy is a bedrock upon which the entire
success of the project lies. However, for a good business
strategy to succeed it requires strong leadership, a dedicated
workforce, set targets, as well as constant room for
innovation.
There are three main types of innovation commonly used

during servitization: incremental innovation, niche innovation,
and disruptive innovation. Despite their differences, they are
geared towards building more customer-centric services — a
key goal of your business strategy.
Customer Journey Engineering

This is a unique form of product design that focuses on more
than just the look and feel of the product, but also on how it
works. It respects the innate ability of consumers to look
beyond the front-end of a service and appreciate the ease of
use, practicality, and efficiency of the entire design.
This can only be done by building a customer-centric

structure and using various service-design techniques to
deliver a powerful end-to-end experience. In the end, a
practical, efficient yet stylish user interface is meant to hide
the inner complexities of the service.
Enterprise IT Renovation
Innovation is the lifeline of any company. Any company which
fails to innovate will always stand the chance of being pushed
out of the market. Of course, innovation is built on the ability
of the design team — a group of different individuals with
different skills, tools, and functions, all uniting towards a
common goal.
There are five key areas to pay attention to when building a

good, strong design team.
● Team design: This means building an autonomous

team that collaborates well with other departments
such as the business department and technical team,
but is not crippled into inaction without constant
direction or supervision from other departments;
● Talent design: This involves producing maximum

productivity by ensuring that every member of the
design team is matched to a task that most suits their
unique talents. This also involves constantly
motivating, improving, and engaging with your team;
● Method design: This involves the use of a minimum

viable product to obtain constant user feedback
through various product iterations and improve the
design of your services. This is not only
customer-centric and faster in the long run, but it is
cost-effective as well;
● Engineering design: By using certain tenets as key

guidelines, your design team can greatly improve their
ability to innovate, adapt and increase efficiency.
These include continuous integration,
infrastructure-as-a-code, monitoring, continuous
deployment, and collaboration;
● Architecture design: The design architecture acts as a

bridge between the visible front end and the
complexity of the backend. A front end should be
focused on high-speed, customer-centric innovation.
On the other hand, the backend transition should be

more gradual to avoid destabilizing the trust built by
the familiarity between the users and the service.
Talent and Mindset

It’s important that every company understands that their
image is built upon the customer's opinion, built upon their
interaction with the service. Therefore, building a talented
team that can create a top-notch product is one of the critical
components of building a successful aaS service. This entails
talent transformation through training in technology,
problem-solving, soft skills, and full support from an
organizational standpoint.
Making the Pivot to

as-a-Service Experiences
Making the decision of transitioning into an as-a-Service
business model is not as easy as it sounds. It requires a
multi-year commitment and numerous challenges due to the
shift in cost structure, supply chains, support models, and
sales. That is why the process must be made as smooth as
possible. This involves several steps which include:
1. Fully embracing the needs, responsibilities, and

challenges expected from shifting from a more
traditional business model to an aaS model;
2. Creating a superior customer experience through the

ability to innovate, adapt, preempt, expand and
implement new services;
3. Building in a data-driven structure that assists to

measure future telemetry. This helps to capture data
that can assist to predict future product development;
4. Rethinking your strategy as the go-to-market and

route-to-market of an aaS business model is
lumberyard different from a traditional one;
5. Creating a purpose-built subscription-based

infrastructure to drive sales and monetization
strategies to create a more predictable revenue
stream and increase customer retention;
6. Understanding the responsibility of building a flexible,

adaptive, and agile structure to drive innovation;
7. Grasping the holistic concept of an aaS business

model, the components it entails, and how they
interact to create a finished product.

HOW TO DEVELOP AN AAS
BUSINESS MODEL?
Building a business plan requires a significant amount of

planning and insight due to the peculiarities of the business
model. Thankfully, there are certain tools that can be used to
build the basic framework for your aaS business model.
Develop Your Business Model

Canvas
The Business Model Canvas is a useful tool that can be used

to build a basic layout of how a business operates. It is a
unique visualization tool created by Professor Yves Pigneur

and Dr. Alexander Osterwalder, at the University of Lausanne
in Switzerland in 2005.
The standard chart is made up of nine core building blocks.

Generally, these areas can be divided into four categories:
Client-based areas (customer segments, customer
relationships, and distribution channels), offer-based areas
(value propositions), resource-based areas (key resources,
key partners, and key activities), and finance-based areas
(revenue streams and cost structure).
Filling in your Business Model

Canvas Template
Let’s take a closer look at each segment and what they mean
within the field of business development.
Value Propositions
The value propositions are a summary of the
products/services offered by your company. It’s also an
outline of why a potential customer should choose your
products/services over that of a competitor. For an aaS, this
can vary widely. However, the key advantages offered by
most aaS platforms include reduced costs, greater expertise,
increased scalability, and greater mobility.
Customer Segments
This refers to the particular demographic your
product/service targeted towards, e.g.
lower-income/higher-income households, families/singles,
and so on. The aaS model is more common among tech
companies, so this will determine your consumer segment to
a great extent.

Distribution Channels
How do you intend to communicate with your patients? This
can be through email, text messages, an official website,
social media platforms, and advertising. For example, an aaS
company can maintain a mailing list of all its regular users.
Customer Relationships
Customer relationships involve how a business and its client
interact within the context of the product/service delivery.
This may be through personal assistance, dedicated personal
assistance, self-service, communities, and so on. Customer
relationships also include how the business plans on
acquiring new clients, retaining old ones, and encouraging
clients to expand their existing services.
Revenue Streams
This refers to how a business plans to generate income from
the products/services they offer to its consumers. Typically,
aaS business models work using either a subscription-based
model, pay-per-use model, freemium model, per-user model,
or function as a pay-as-you-go service.
Also involved is the pricing mechanism that will be used by

the business. This may be volume-dependent (how much of
the service is used), customer segment-dependent (who is
using the service), product feature-dependent (what is the
quality of the service offered), or a fixed list pricing.
Key Activities
This refers to essential activities which must be carried out to
ensure the business functions properly, which may include
research and development, production, service delivery,
marketing, customer service, and so on.
Key Resources
Key resources are the inputs that are required for this
particular business model to work. This involves things such

as material resources, technological inputs, human resources,
intellectual property, financial resources, and so on.
Key Partners
Key partners are other businesses or entities which are
essential to the functioning of your business. They may offer
key services, maximize profits through economies of scale,
reduce risk, help in resource acquisition, and provide other
key services.
Cost Structure
This involves all costs that are linked to the operation of the
business and the delivery of services. This may include
employees’ salaries, facilities maintenance, acquisition of
equipment and software applications, and so on.
Your cost structure is generally divided into fixed costs,

ongoing costs, and one-off costs. Some other classes include
product development costs, customer acquisition costs, and
so on.
Knowing this will help you to calculate your burn (the amount
of money you spend monthly to run the business minus your
monthly revenue) and your runaway (how long you can
sustain the current business model before running out of
cash). It also allows you to calculate your growth rate as well.
Find a Niche
After creating your Business Model Canvas, you will be in a
strong position to highlight the strengths and weaknesses of
your business model. Consolidating these strengths is key to
the success of any aaS company. This involves finding a
niche within the market where consumer needs have not
been fully addressed or where you believe you can provide
better services.

Define Your Positioning,
Market, Competitors
After defining your niche, it’s important to build your brand
image around it. Positioning is a term that refers to consumer
perception about your brand and how it relates to
competitors. This involves discovering your key competitors
early on and creating a unique brand image for your aaS
business to distance it from the crowd. This requires a
complete understanding of the consumer’s needs, your
company’s capabilities, and what your competitors currently
offer as well.
Identify Tech Stack

This involves identifying the necessary resources, technology,
and tools required to make your business plan a success.
This can range from physical infrastructures — such as
servers, computers, office facilities, and so on — to
non-physical resources — such as software and applications.
Choose a Pricing Strategy

The wrong pricing strategy can render even the best
business idea useless. Your monetization model should be
built on a well-known pricing model, but still, be uniquely
structured to the type of services you offer. It can even
involve integration with third-party payment processing
services such as PayPal and Visa. It requires an
understanding of consumer behavior and preferences, your
position in the market, the pricing strategy used by your key
competitors, and the ability to be adaptable as any of these

factors may change rapidly.
Assemble a Development Team

As we mentioned before, your development team is quite
important when it comes to the success of the service. A
team with the relevant experience, skills, tools, and
motivation is necessary to convert your vision into a reality.
Release a Product
This involves a solid release strategy built around advertising,
publicity, great customer communication channels, and a
reliable schedule leading up to the release date.

METRICS FOR AN AAS
BUSINESS MODEL
Constant monitoring and evaluation of your business are very

important. It helps you to measure the rate of growth of your
company and allows you to compare this data with set
targets. However, due to the increased complexity of aaS
models and the fact that they are relatively new to the
business scene, measuring this growth can be somewhat
difficult. Luckily, there are several trusted metrics that can be
used to reliably measure the rate of business growth.
Customer Acquisition Cost

(CAC)
Your customer acquisition cost (CAC) refers to the total

resources utilized to acquire a new customer. It may be a

challenging metric to accurately measure, but it is certainly an
important one. To calculate this, you will need to know the
average number of customers acquired, the cost of customer
acquisition through marketing, and, of course, the number of
man-hours dedicated to this task as well.
A low CAC is a good indicator because it shows that your

company is relatively successful in attracting new customers
at a low cost. High CAC values are a red flag, especially when
your total CAC is higher than your Monthly Recurring
Revenue or Annual Recurring Revenue (more on these later).
It also allows you to determine if the cost of customer
acquisition is changing, which communication channels offer
the lowest CAC value, and when it is least expensive to
acquire customers. Your CAC is also an important variable
when calculating other important metrics such as the
LTV:CAC ratio.
Lifetime Value (LTV)
The lifetime value (LTV) is simply an estimate of the expected

gross revenue from a customer over the entirety of their time
using your product. Mathematically, it can be calculated as
your MRR/ARR X Customer Lifetime. It can also be expressed

as the average customer revenue multiplied by the gross
margin percentage divided by the customer churn rate.
Your LTV is a very important metric and when combined with

the CAC to calculate your LTV:CAC ratio it gives you a
simplified look at the sustainability of your current business
model. Generally, the LTV:CAC ratio should be at least 3. This
means that you make at least three times as much from a
customer than you spent to acquire them. It indicates a
healthy revenue stream and gives some leeway in the event
you experience a decline in LTV or an increase in your CAC.
Monthly Recurring Revenue

(MRR) and Annual Recurring
Revenue (ARR)
Just as their names suggest, your MRR and ARR refer to how
much revenue your service is expected to bring in any given
month versus how much revenue you may expect in a year. In
general terms, an increase in MRR or ARR is a strong sign of
growth. However, for the monetization models most
commonly used with aaS business models — such as

subscription-based models or pay-as-you-go services —, an
MRR value is more important.
Your MRR can also be used to calculate your average

revenue per account (ARPA). This is simply the total MRR
divided by the number of customers who use your services.
It’s important to remember that MMR/ARR is not an indicator
of profitability because your expenses are not factored in.
However, your MMR/ARR should include discounts, upgrades,
downgrades, and loss of recurring revenue.

Churn Rate
The churn rate refers to the number of customers or

subscribers who cancel their subscriptions over a given
period of time. It can also include the number of customers
who downgrade their subscriptions for whatever reason. This
can be measured monthly or annually. Obviously, a high
churn rate is a significant indicator of poor customer
retention, one of the leading causes of aaS startup failure.
This is one of the reasons why customer feedback is vital. It

allows you to discover certain shortcomings or complaints
that users may have with your service and allows you to
address these before they lead to catastrophic failure. These
adjustments may range anywhere from pricing, available
features, product design, efficiency, and even brand image.
The churn rate can be calculated as the number of

subscribers lost in a month divided by total subscribers at the
start of that month times 100. A great churn rate is a value
below 5%, however, this can vary widely depending on your
business model. Companies aimed toward small businesses
and large volume contracts can tolerate higher churn rates

than those who have a small, yet dedicated, large business
clientele base
Retention Rate
The retention rate is almost the polar opposite of your churn
rate. It is a measure of how long you can successfully
maintain a customer per your subscription model (usually
weekly, monthly, or annually). A healthy retention rate may
indicate strong growth, high-quality services, a great
marketing strategy, and a strong brand image.
There are two main types of retention rates: the customer

retention rate and the MMR retention rate.
● The customer retention rate focuses on how many

customers continued using your services during a
particular time period. If your customer retention rate is
going higher, your churn rate should be falling. To
calculate customer retention rate, simply divide the
number of active customers that are currently
continuing their subscriptions at the end of the
month/year by the total number of active users you
had at the beginning of that same time period;

● Your MMR retention rate is a measure of your MMR for
that given month against your MMR at the beginning of
the month. It is calculated by dividing the MRR of
renewed subscriptions by the total MRR of
subscriptions up for renewal.
It is important to calculate both forms of retention rates

because, even if your customer retention rate is high, if a
large number of users decide to downgrade their
subscription, this can lead to significant losses. Therefore, the
customer retention rate does not paint the entire picture
accurately when used alone.

VALUATION OF
MODELS
AaS business models have several significant differences

from traditional business models, however, they do share
certain similarities. This includes several metrics which are
used to measure the value of an aaS business. An aaS
business is valued as a multiple of:
● Revenues
● Seller's Discretionary Earnings
● EBITDA
Let’s explore each of these metrics separately and discover

which particular aspects of the company each takes into
consideration.
Revenue Multiples
Many aaS startups need significant upfront investment to get
off the ground. Therefore, according to industry standards,
they are running a negative balance sheet until they break
even and start to generate positive cash flow. SDE and
EBITDA work using net profits and therefore cannot be used
for the valuation of companies that are not yet maximized for
profit. This leaves the revenue multiple as the only viable
option.
This can be used only in startups with fast-growing revenue

and the potential to upscale rapidly. This is because a
startup's revenue estimates how long it will take a company
with a negative balance sheet due to break even and
generate positive cash flow by measuring its net sales or
gross revenue.
Mathematically, it can be expressed as traced in the formula

below:
Revenue multiple = The selling price of the company /

Annual revenue of the company
The first step is to calculate the revenue multiple, by

obtaining the selling prices of several comparative companies
and dividing them by their annual revenue. The average of
the values obtained is the median revenue multiple. Since
this value is now known and the annual revenue of the
company is known as well, these can be substituted into the
following formula to obtain:
The selling price of the company = Revenue multiple *

Annual revenue of the company
Seller's Discretionary
Earnings (SDE) Multiples
Seller’s Discretionary Earnings is a financial metric which is
used to measure the value of a business. SDE is mostly used
for small to midsize companies (typically with valuations
below $5 million), which are privately owned and have
achieved a steady rate of growth, stable income, and a low
intent towards reinvesting their earnings back into the
business.
According to the International Business Brokers Association

(IBBA), SDE is defined as:
"The earnings of a business prior to income taxes,

depreciation, amortization, interest,
non-operating income and expenses, nonrecurring
income and expenses, one owner's entire
compensation (including benefits and any
non-business or personal expenses paid by the
business)."
Mathematically, this can be expressed as traced in the
formula below:
SDE = Revenues – Costs of goods sold – Operating

expenses + Owner compensation
The main advantage of the SDE is that it helps to standardize

your income against that of similar companies within the
industry, creating a more accurate impression of your
company’s value. Owner compensation (also known as
add-backs) are expenses that are added back to the
calculated net profit in order to place the figures as close as
possible to the true earnings actually from the business.
These include the owner's salary, interest, depreciation,
amortization, loans, and so on.
EBITDA Multiples
EBITDA stands for Earnings Before Interest, Taxes,

Depreciation, and Amortization. It is generally used for larger
businesses (usually with valuations above $5 million) and is
used to estimate the cash flow generated by a company. The
first step is to find out the EBITDA of similar companies which
have been sold recently. Simply divide their sale value by
their EBITDA to obtain the median multiple.
After this, calculate the EBITDA of your company. The

mathematical formula for calculating EBITDA is expressed as
traced below:
EBITDA = Earnings + Interest + Taxes + Depreciation +

Amortization
When this has been deduced, simply multiply it by the

median multiple to obtain an approximation of your company
value. One issue with the EBITDA multiple however is that it
fails to take into consideration the non-cash flow factors
which are considered when valuing a business such as
market positioning, intellectual property, human resources,
and so on. Also, the EBITDA multiple does not account for
fixed asset expenditures or a number of accruals. Therefore,
the EBITDA should be used to obtain a rough estimate of
company value.
Other Factors to Consider

When Valuing a SaaS Business
Aside from cash flow and profits, there are many other factors
that must be considered when calculating the value of a
company. Many of these assets are intangible and therefore
hard to valuate. However, their importance cannot be
overemphasized and should be considered closely as well.

Customer Acquisition Channels
As we mentioned before, small and medium enterprises
(SMEs) sometimes have the issue of a high churn rate. That
means that a significant amount of their resources are spent
on recruiting new customers every month through their
various customer acquisition channels. Therefore, investors
are interested in aaS companies that have multiple customer
acquisition channels with a strong organic base and solid
conversion metrics.
Through the lens of potential investors, these channels can

be appraised using three key criteria: concentration, channel
competition, and conversion.
● Concentration refers to the diversity of customer

acquisition channels a company employs, including
both organic channels — such as content marketing —
and paid channels — such as affiliate marketing;
● Channel competition refers to the strength of each

customer acquisition channel when ranked against
close competitors. A low ranking of course will reduce
the value of the business;
● Conversion implies the conversion-to-trial ratio and

conversion-to-paid ratio, as well as the associated CAC
of the aaS company.
Product Lifecycle
Innovation is the backbone of any successful aaS business
model. It can be driven by a changing market environment,
increased competition, or simply spontaneous development.
However, even within these cycles of innovation, there are
periods within the product lifecycle where it strives for
stability and acceptance among its consumer base before
seeking to release a new iteration.
Most investors prefer to acquire a business during this stage

of maturity, as it gives them a stable background to integrate
themselves into the business structure and its inner workings
before a new product is released.
Technical Knowledge
Many investors within the aaS industry are not technically
inclined and therefore need the support of those with
expertise within the field. Therefore, most investors may be
discouraged if they suspect they may not be able to retain
members of the team who are essential to the success of the
business.
Due to their lack of technical knowledge, replacing these

mission-critical members may not only be expensive, but lead
to disastrous results as well. Therefore, investors prefer some
level of commitment from key team members or at least the
assurance that their skill sets can be easily replaced.
Competition
While competition drives innovation, it does so on the graves
of many startups and companies which failed to keep up with
changing trends. Investors are very interested in the
competitors of any potential business they wish to acquire
and the market positioning of the company against its
competition.
This is especially relevant in aaS businesses, which incur a

high degree of development costs and are typically backed
by well-funded venture capitalists. That means that smaller,
poorly funded startups have a much lower chance of
surviving in such a competitive market.
Age of the Company

The age of a startup is very important. Up to 93% of SaaS
startups fail within the first three years. That means that a
startup that has lasted for a significant amount of time has
demonstrated a strong sign of a sustainable business model.

Also, older companies have a wealth of data and experience
to draw from, which makes them more predictable when it
comes to estimating future revenue.
However, despite the high failure rate of young SaaS startups,

startups younger than two years are an ideal target for
smaller investors with a higher tolerance for risk. This is
because they are relatively cheap (most firms start receiving
premium multiples after three years in business), have rapid
initial growth phases, and therefore can produce larger
returns on investment.
Owner Involvement
There are many ways to successfully run a company as a
CEO, from a more laid-back executive with strong delegation
skills to a more hands-on approach that puts you right in the
middle of all the action. There exists a wide Spector between
both of these extremes, and most company CEOs find
themselves somewhere in between.
From an investor's standpoint, most potential buyers prefer a

well-built structure that can survive even if there is a change
in leadership. Having a chief executive who is very integral to
the success of the startup may present difficulties if they have
to be replaced during the purchase. This may either lead to
higher costs in finding a competent replacement or scare off
potential investors, both of which lower the value of the
company.
Growth Trends
In most cases, no investor is interested in purchasing a failing
company. Therefore, aaS companies that have consistently
demonstrated strong indications of growth, development, and
stability usually fetch a premium valuation from investors.
Of course, the easiest way for a potential buyer to measure

the strength of this growth is through various trusted growth

metrics, such as the CAC, MRR, LTV, churn rate, retention rate,
and so on. These form objective indices which can be used to
measure and prognosticate the success of a company.

CASES OF AS-A-SERVICE
BUSINESS MODELS
Here are some practical examples of how the aaS business

model can be applied.
Original Equipment
Manufacturer (OEM)
This involves a product manufacturer who leases their
technology to users, usually using a subscription-based or
pay-as-you-go monetization model. This is commonly used
among companies that operate IoT devices, which allows
them to receive information from their product remotely.
A good example is the Rolls-Royce jet turbine engine, which it

charges aerospace customers based on a fixed price
depending on the number of hours they fly. The Rolls-Royce
company handles the maintenance of the engines and
monitors their performance remotely using IoT sensors.
Rental or lease
Even though aaS is commonly associated with cloud-based
computing technology, it can also be applied to more
traditional products as well. A good example would be the
model employed by Zilok, which allows users to rent things

like strollers, cars, gaming consoles, and power tools, from
other people.
Business-to-business (B2B) or
Business-to-consumer (B2C)
Models
B2B companies cater directly to other businesses. AaS has
become a significant part of this industry, as this can clearly
be illustrated using Signify, a Dutch multinational lighting
corporation that offers its services to the Schiphol Airport.
The maintenance, optimization, and replacement of the
lighting fixtures are handled by the company.
B2C companies meanwhile direct their business efforts

primarily toward customers. For example, Lynn & Co, a
Chinese-Swedish automobile brand owned by Geely
Automobile Holdings offers aaS car services that allow users
to rent cars using a monthly subscription model which costs
€500/month. The customers however take care of the
maintenance, fueling, insurance, and road tax.

ADVANTAGES OF
MODELS
Let’s take a closer look at the key advantages of adopting an

aaS business model.
Recurring Revenue Stream

It offers a stable, reliable revenue stream due to the fact the
users are only temporarily renting your infrastructure using a
subscription-based model. This makes it easier for the
business to predict its monthly revenue and offers a more
reliable framework for growth. This system also makes it
much easier for the users to calculate their monthly costs
when using the service.
A Dedicated and Engaged Customer Base
One advantage of aaS services is that they encourage
longtime service use and promote customer loyalty. This is
likely because your aaS has become an integral part of their
business structure or personal lives, leading to increased
dependence and dedication to the brand.
Predictive Instead of Reactive System

One of the important features of aaS models is their ability to
drive innovation and preempt consumer needs. Instead of
merely reacting to changes in consumer sentiment, they
create solutions to issues that consumers did not even know
they had.

In-depth Customer Data Analytics
Due to the long-term relationship between both consumers
and aaS service providers, there is a wealth of data to draw
from, leading to deeper customer insights and better
services. This comes in the form of a continuous feedback
loop between the service providers and users through
various customer channels.
Lower Costs
AaS services are typically a cheaper alternative for most
users because they do not have to bear the burden of
purchasing, upgrading, and maintaining the infrastructure
itself. Therefore, premium services can be made accessible to
a wider customer base due to economies of scale.
Flexibility & Scalability

This is another key advantage of aaS services. It is due to the
fact that they do not have to purchase or update existing
infrastructure when upgrading their services. It simply
involves upgrading their subscription and accessing new
features from their service providers.
Free Upgrades
AaS service providers are constantly working at the backend
of their services to increase both efficiency and customer
satisfaction, usually without the user even knowing it. This
frees the user from the burden of constantly updating the
infrastructure, both in cost and manpower. It also makes
pivoting, support, and improvement much easier.
Mobility
A large number of aaS services allow remote work from
virtually any internet-capable terminal. This is becoming
increasingly important, as most users now consider this a
deal-breaker when considering service providers. This is also

because a lot of service providers are multi-platform and
work with a range of operating systems, which greatly widens
your options.
Installation Speed
Accessing these services is much quicker since the user
usually does not have to purchase any software or hardware.
By simply subscribing, they will have access to a wide range
of features.

DISADVANTAGES OF
MODELS
Despite all its benefits, there are some shortcomings that are
common to most aaS businesses.
Difficulty in Making the Shift to aaS

The transition from a traditional product-based business
model to an aaS service can be quite demanding. It requires
a significant amount of expertise, leadership, dedication, and
financial commitment. A well-built business plan and roadmap
are required, and many firms may not have the required
technical ability or financial support to successfully make this
transition.
Requires More User Engagement

Shifting to an aaS model requires a significant overhaul of
existing products and services. The aaS business model is
focused on more than just selling a product to a user through
a one-time transaction. It must also maintain this relationship
over a period of time, something which requires constant
engagement with the user and a significantly higher level of
commitment.
Increased Product Complexity

A true aaS company doesn’t just try to cater to as many users
as possible. They also aim to increase the utility of their
services by offering as many features as possible to ensure

that users obtain maximum satisfaction with their services.
However, this leads to increased complexity which may
manifest in numerous ways such as increased operating
costs, frequent product failures, and even an unfeasible
business model.
Security Requirements
One issue a significant number of users have with aaS
services is the security risk involved with storing or exposing
potentially sensitive information to a third-party service.
Therefore, it is important that aaS businesses ensure users of
top-notch data security and comply fully with all regulations
involving data handling.
Higher Operational Costs

Most aaS businesses require a significant amount of upfront
investment and have high operational costs. This is because
a large number of resources are invested in the purchase,
maintenance, and upgrading of the infrastructure used to run
the business. Therefore, it may take some startups some time
to reach break-even and eventually become profitable.

CONCLUSION
The rise of the aaS model has been driven by several key
industry factors, which include increased ecosystem
complexity, expanding partnerships, and changing customer
expectations. This pressure has pushed many businesses
towards implementing a scalable, flexible, and more
predictable business model which promotes steady recurring
income.
However, the transition from a traditional business to an aaS

business model is certainly difficult and requires a high
degree of technical knowledge and leadership. It involves
identifying the unique challenges your business will face
while implementing this system and the most feasible ways of
bridging these gaps.

REFERENCES
The following references were consulted to create this Super

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➔ https://zinnov.com/iot-as-a-service-a-game-changer
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➔ https://reasonstreet.co/infrastructure-as-a-service/
➔ https://reasonstreet.co/platform-as-a-service/
➔ https://www.beyondnow.com/en/insights/market-in
sights/how-to-adopt-a-digital-platform-business-mo
del/
➔ https://medium.com/caliber-data-labs/mobility-as-a-
service-business-model-6418b2e3b394
➔ https://kaohsiung.ecomobilityfestival.org/mobility-a
s-a-service-an-embodiment-of-shared-livable-and-i
ntelligent/
➔ https://www.investopedia.com/terms/b/blockchaina
saservice-baas.asp
➔ https://academy.moralis.io/blog/exploring-blockcha
in-as-a-service-baas
➔ https://www.firmhouse.com/blog/what-is-product-a
s-a-service-paas
➔ https://iot.telenor.com/iot-insights/from-product-to-
connected-product-as-a-service/
➔ https://www.futurebridge.com/blog/product-as-a-se
rvice-the-shifting-model-in-industrial-machinery/
➔ https://www.ericsson.com/en/blog/2018/11/iot-as-a-
service-a-new-business-model
➔ https://zinnov.com/iot-as-a-service-a-game-changer
/

➔ https://www.snowdropsolution.com/cloud-computi
ng/creating-xaas-business-anything-as-a-service-b
uilding-scalable-lead-to-cash-operations-for-industr
y-4-0-with-sales-and-back-office-capabilities/
➔ https://www.servicebell.com/post/saas-business-m
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➔ https://wiprodigital.com/2020/01/14/transforming-to
-as-a-service-business-models/
➔ https://www.accenture.com/us-en/insights/high-tec
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➔ https://www.accenture.com/_acnmedia/PDF-119/Ac
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➔ https://www.gartner.com/smarterwithgartner/how-t
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➔ https://www.mindk.com/blog/moving-to-saas-busin
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➔ https://jelvix.com/blog/saas-business-model
➔ https://www.forentrepreneurs.com/saas-metrics-2/
➔ https://www.trianz.com/insights/saas-business-mod
el-change-management-required-for-developing-s
aas-product
➔ https://visible.vc/blog/saas-business-model/
➔ https://ramkumarssite.com/2019/09/02/valuation-of
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➔ https://empireflippers.com/saas-company-valuation
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saas-business/
➔ https://empireflippers.com/saas-company-valuation
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he-business-model-of-the-future/
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plained/
➔ https://marker.medium.com/should-brands-conside
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aas-product
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service-cornerstone-of-the-digital-enterprise-1706.
html

aas-product
aas-product
aas-product
aas-product
➔ https://www.hpe.com/us/en/insights/articles/it-as-a-
service-cornerstone-of-the-digital-enterprise-1706.
html
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plained/
as-a-service-business-models
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06/27/why-the-as-a-service-model-works-so-well-f
or-digital-transformation/?sh=1ddcb18f6490
➔ https://blogs.oracle.com/scm/post/how-to-make-ne
w-service-oriented-business-models-profitable
➔ https://www.snowdropsolution.com/cloud-computi
ng/creating-xaas-business-anything-as-a-service-b
uilding-scalable-lead-to-cash-operations-for-industr

y-4-0-with-sales-and-back-office-capabilities/

ABOUT THE AUTHOR
Daniel Pereira is a Brazilian-Canadian entrepreneur that has

been designing and analyzing business models for over 15
years. You can read more about his journey as a Business
Model Analyst here.
E-mail Daniel if you have any questions

at: [email protected]
You can connect with Daniel at Linkedin:
https://www.linkedin.com/in/dpereirabr/


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As-a-Service

This PDF File was purchased by Punyapon - [email protected]

This PDF File was purchased by Punyapon - [email protected]

The Business Model Analyst is a website dedicated to

This PDF File was purchased by Punyapon - [email protected]

This PDF File was purchased by Punyapon - [email protected]

This PDF File was purchased by Punyapon - [email protected]

This PDF File was purchased by Punyapon - [email protected]

This PDF File was purchased by Punyapon - [email protected]

As-a Service refers to a form of service provision in which the

While many arguments over the origin of this model exist,

This shows that in a world where consumerism and the

This PDF File was purchased by Punyapon - [email protected]

In this article, we will take a deeper look at the aaS business

This PDF File was purchased by Punyapon - [email protected]

The as-a-Service business model is an emerging business

This represents a shift from the stereotypical

Another popular way of referring to this sort of business

● Software as a Service (SaaS);

● Communications as a Service (CaaS);

● Network as a Service (NaaS);

● Platform as a Service (PaaS);

This PDF File was purchased by Punyapon - [email protected]

● Infrastructure as a Service (IaaS);

● Storage as a Service (StaaS);

● Disaster Recovery as a Service (DRaaS);

There are several reasons why the popularity of XaaS has

● The increased convenience of a pay-as-you-go

● aaS models are more resistant to economic

● Increased scalability: AaS models are typically more

● Reduced consumer liability in terms of infrastructure

● Better suited for supporting a remote workforce:

This PDF File was purchased by Punyapon - [email protected]

● Cost-effective for businesses to optimize and sell:

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In the previous section, we discussed the aaS business

In a nutshell, this means that the user has access to all or a

This idea was built on similar earlier concepts such as the

Another significant milestone in the early iterations of cloud

In the early 2000s, Amazon rolled out a range of services that

This PDF File was purchased by Punyapon - [email protected]

The Deployment Models

These services are usually accessed over the public Internet

There are several merits and demerits to this deployment

This PDF File was purchased by Punyapon - [email protected]

There are several obvious advantages to this system. One of

One of the demerits of this system is that managing it

There are some other lesser-used cloud deployment models,

The Internet of Things (IoT)

In the consumer market, they are mostly seen in a range of

IoT Brings in the Newer ‘aaS,’ but it is Not for Everyone

This PDF File was purchased by Punyapon - [email protected]

The use of IoT now allows companies and users to accurately

Companies like Rolls-Royce, John Deere, and Michelin have

For example, Rolls-Royce has championed the use of IoT

What Do the Service Providers Require?

How an IoT as-a-Service Business Models May Work

This PDF File was purchased by Punyapon - [email protected]

This PDF File was purchased by Punyapon - [email protected]