ENTERPRISE IT
gauge adoption trends of XaaS across industries – found that , while only 9 % of surveyed businesses have completed XaaS transformations up to this point , most ( 85 %) are at the progress stage , whether that is piloting or operating at scale .
The report found that more than half ( 54 %) of responding businesses said they are prepared to adopt XaaS , while the number of businesses that are not yet ready has fallen sharply – from 13 % in 2019 to just 2 %.
With the market maturing at such pace , businesses are increasingly migrating from basic subscriptions to consumption-based models and outcomes pricing . While 60 % of all organisations surveyed are currently using subscription models to charge for XaaS offerings , 52 % told EY they intend to shift to consumption models in the next three to five years .
“ Businesses are shifting toward consumption-based pricing because it offers agility , affordability and minimal capital commitment – which is , in turn , translating into scalable profitability ,” explains Michael Kanazawa , EY Global Innovation Realised Leader and EY Americas ’ Consulting Growth Strategy Leader .
“ The business models are evolving even further as companies combine their subscription services with consumptionbased pricing , helping customers to extend or enhance offerings as needed . These new blended models can require innovation to value propositions and product designs , as well as the need to transform commercialisation approaches and backend capabilities .
“ A main takeaway point from this year ’ s research is that these XaaS models are moving toward the mainstream , and as they scale , they are driving the need for transformational changes across the enterprise .”
technologymagazine . com 103