Are you being inundated with aaS (As A Service) offerings? Have you found a way to capitalize on aaS as part of your business toolbox? Most services and software in the information technology industry and beyond have moved to aaS. Let’s take a look at what aaS is and some of the pros and cons to leveraging aaS to meet your business goals.
What is aaS?
The letters aaS are short for As A Service, a licensing concept or business model in which a service, software or product is acquired through an ongoing subscription as opposed to a one-time purchase. For example, in the past, Microsoft Office could be licensed with a one-time software purchase. With today’s aaS model, businesses must purchase monthly or yearly subscriptions to access the Microsoft Office suite.
Does aaS apply only to software?
aaS models began with software technology and have now expanded to include a variety of products and services. Some of the most common examples of aaS include:
- SaaS (Software as a Service) – a method of purchasing software licenses on a subscription service, either monthly or annually;
- UCaaS (Unified Communications as a Services) – a cloud-based delivery model that offers a variety of communication and collaboration applications and services such as voice and telephone, messaging, video conferencing and document sharing;
- HaaS (Hardware as a Service) – a monthly model that enables businesses to acquire new laptops and other hardware on a scheduled basis without a major upfront capital expense;
- DRaaS (Disaster Recovery as a Service) – a service where a business’s IT operations can be switched to a remote system when their main system fails, limiting downtime and shortening recovery from system failures or cyber attacks;
- IaaS (Infrastructure as a Service) – a cloud computing model that provides virtual computing resources, such as servers, storage, and networking, over the internet on a pay-as-you-go basis.
Benefits of aaS models
- Staying up-to-date – In the midst of rapidly changing technology, businesses can access the most up-to-date software, hardware and other services on an ongoing basis. In the past, if a software or hardware (i.e., laptop) update was needed, businesses had to buy new versions, sometimes requiring large capital expenses. aaS automatically provides updates when available or according to a pre-established schedule, keeping software, services and hardware up-to-date.
- Better protection against cyber threats – Subscription services continually update software and hardware, providing the best protection against cyber threats. Patches needed for cybersecurity arrive immediately, offering a prompt layer of protection.
- Easier budgeting – aaS subscription models become an operational expense, making it easy to budget for IT spending on a monthly or yearly basis, reducing the likelihood of an emergency expense for cybersecurity-related concerns.
- Potential savings – Businesses taking advantage of HaaS no longer need to expend a large amount of money on laptops, servers and other hardware, only to see it depreciate and become obsolete in a year or matter of months. In addition, under a leasing model such as this, the business would not be responsible for paying taxes on the equipment they use.
Now, the cons
- Ongoing expense – Under the aaS model, “one and done” expenses no longer exist. The ongoing cost of accessing software, hardware and services has to be built into a business’s operational budget.
- Subscription overload – As more and more aaS models arise, this can lead to a business having to manage and pay for multiple subscriptions.
- Tax considerations – Businesses that spend large sums on capital expenses such as technology hardware can sometimes write off their depreciation as a tax deduction, something not available with HaaS. We are technologists not tax accountants though….so always check with them for tax advice!
As aaS services grow and become more varied, it’s difficult to know which solutions are the best options to meet a business’s IT needs within a limited budget. ATB Technologies is an award-winning managed service provider (MSP) that offers a variety of aaS solutions and can help businesses navigate which options best support their business strategy and goals. If you’re interested in learning how to maximize your aaS options, let us help you. Reach out today and schedule a free consultation at atb-tech.com/advisory-services.
We’re ready to help and provide IT support that never lets you down.