XaaS: The present and future of technology consumption

Technology is increasingly being purchased via an as-a-service, subscription model. Anything and everything is being sold and delivered as a service. The global everything-as-a-service (XaaS) economy is huge — to the tune of $904B.¹ In fact, IDC surveyed more than 1,000 IT decision makers worldwide and found that 77% agree that shifting purchasing digital infrastructure as a service, including consumption models and remote support, is a critical element of their future strategy.² And with a 22% CAGR forecasted through 2027³, XaaS is growing faster than the tech market as a whole and won’t be losing momentum anytime soon.  

The as-a-service, digital economy has been on our minds and a focus of discussion at Arrow Electronics for the past several years. We know this is more than a trend and we’re eager to help you seize the opportunities that XaaS presents. 

XaaS offers infinite potential, but not without complexity 

The pay-as-you-go structure makes XaaS an attractive model for a few key reasons: 

• Monthly, recurring payments can increase margin and improve cash flow. 
• You can scale and flex to market demand while competitively differentiating your business. 
• Your customers will enjoy cost predictability and tax benefits of XaaS. Those who want to convert capital expenditure into running operational costs benefit from lease offers. 
• As a service also helps ensure your customers will always have the latest technology.

All signs point to rapid growth potential under this model, even in uncertain market conditions. But the mechanics of making the move can become complex quickly.  

Cloud governance, over subscription, and lack of support or technical skills are all challenges your customers are dealing with as they navigate the complexities of cloud and XaaS. As the trusted advisor that your customers turn to for cloud expertise, you must address these challenges, which are further compounded by other considerations, like billing reconciliation efforts, ERP integrations, complex ordering and provisioning, multiple workflows, multiple customer self-service tools, reporting and go-to-market effort. 

Make managing your XaaS business a frictionless experience 

We know that there is a growing appetite for the flexible consumption that XaaS provides. But as-a-service business requires more than simply clicking “buy” and waiting for the next renewal. It requires ongoing management of that subscription service. As the premiere distributor of everything as a service, we’re here to help you address pain points of switching models so you can seamlessly pivot and ultimately thrive. 

It starts with platform 

To truly excel in the as-a-service market, you need to get your arms around subscription management. We created ArrowSphere to help you do just that. As an industry-recognized digital distribution platform, ArrowSphere is one of the most comprehensive global cloud platforms for buying, selling and managing XaaS solutions and provides a superior experience to our channel partners as they juggle all of their customers’ subscriptions.  

It enables you to search, discover, buy and manage all your software and XaaS technology solutions. You can manage subscriptions throughout the entire life cycle of every product. Simply put: ArrowSphere lets you streamline your operations, increase efficiency and scale your business. We’ve seen so many customers grow their business with ArrowSphere — it’s one of our offerings that we’re most proud to bring you. And knowing that XaaS is the present and the future, we see a clear way for you to navigate the complexity and come out stronger.  

Reach out to your account representative or contact us to learn more about the infinite possibilities with ArrowSphere.