- Even when you know
the definition of x as a service and the benefits,
it might still be difficult to conceptualize it,
unless you know how it works in practice.
Let me tell you about NewCo,
a fictional startup that decided to sell unique t-shirts
online by quickly getting the tools
it needed to operationally function
and provide services to customers.
NewCo doesn't manufacture anything themselves,
they provide specifications to a manufacturer,
which distributes t-shirts directly to the buyer.
They also don't require an office.
It's a small team
and it's distributed across the United States.
Each member simply requires a decent internet connection,
and a laptop with a selection of internet browsers.
As a team, their first step
in order to begin to work together
is to find an efficient way to communicate.
From email to voice support,
they'll use a small handful
of software as a service or SaaS solutions.
Lots of vendor options exist
that include big players such as Google and Microsoft.
They will likely use
desktop video conferencing such as Zoom,
and a collaboration platform such as Slack.
Their communication tools
are enabled and active immediately.
All the x as a service services such as SaaS
will be purchased with a credit card.
And since they are subscriber based,
payments are made each month
eliminating the need for any large upfront costs.
In fact, as needs dictate,
x as a service enables the startup to ramp up or ramp down
their needs as necessary
by simply adding or deleting services.
They're not burdened with any technology or excess capacity
that is not required.
That's a huge benefit for them,
since cash for a startup must be judiciously managed.
In some instances,
they will be able to use free versions of SaaS,
given their modest size and scale.
In time though,
they'll likely need to upgrade to paid versions.
NewCo has the choice to build their own e-commerce platform,
or use a SaaS based solution.
Each offers different advantages.
Their own system gives them the most flexibility,
but it's a more complex and expensive path.
SaaS provides most of what they need
and can be deployed quickly.
NewCo has decided to build their own capability
because they have the skills
and want to build a unique solution.
To do this, they procure both
infrastructure and platform as a service,
IaaS and PaaS respectively.
IaaS provides them with storage, web hosting,
and processing requirements.
PaaS enables their development needs
to build and run the e-commerce solution.
Their SaaS, IaaS and PaaS stack
will also enable payments processing,
integration with vendors, notifications, and workflow.
They'll likely incorporate other services
such as backup as a service, identity as a service,
and security as a service
to provide resilience and peace of mind.
While one part of this team
focuses on building the sales platform,
another group ramps up their operational needs.
Operations will need a problem management system
and a knowledge base.
SaaS solutions such as ServiceNow and Jira are available.
From reporting tools to project management and beyond,
the operations team will acquire SaaS tools
to meet all their needs.
NewCo is a native x as a service business.
It went from an idea to a functioning business
in a matter of days.
Their costs have been minimal,
and they have enormous flexibility.
Don't be distracted by NewCo being a startup.
The benefits they elicited from x as a service
are being scaled and implemented
in every type of organization.
After all, everything as a service
is the future of business.