Pay-per-use billing supports customers’ growth plans
Energy Financial Solutions
XaaS
The “as-a-Service” (XaaS) model, such as Software-as-a-Service (SaaS), provides companies with plug-in, scalable, consumption-based services to deliver business outcomes and it has expanded to include other services such as storage-as-a-service, desktop-as-a-service, disaster recovery-as-a-service or healthcare-as-a-service.
The Market
The global XaaS markets are expected to grow at a CAGR of 38% reaching the total value of $380 billion in 2020. The shift from the capital expenditure (CAPEX) model to an operational expenditure (OPEX) model to gain cost efficiencies is the primary driver for the market. (Source: Gartner - February 2017)
Advantages
This transition from a passive ownership to efficient usage will liberate budgets of heavy capital investments1, and therefore create a more efficient working capital management environment. The key drivers for a rapid XaaS growth:
- No up-front capital investment
- No ownership for the client (no assets in the Balance Sheet -> improvement of the RoA)
- Pay-per-usage (all billing against actual consumption)
- Shift of the risk and resource requirements associated with operation, backups, updates, and infrastructure maintenance from the internal facility department to BESA manufacturing partners