Any business worth their salt is now using Data as a Service (DaaS) via a cloud computing platform. DaaS is just the latest in a long-line of services, including Software as a Service (SaaS) and Platform as a Service (PaaS), that utilize the cloud in order to provide value to businesses. So what benefits does DaaS provide to companies?
In today’s age, data drives all decisions. The era of business leaders making decisions based on instinct or intuition are long gone. Why take a risk when data can point you to the right solution? Instead of following a feeling, business choices are most often made by consumer behavior: how do they react to a particular A/B test? How do they navigate your website, and what do they pay attention to? What do they even use your product for?
Data can answer all of these questions and more, whether it’s through consumer research and market testing or using one of the numerous analytical tools out there that track your marketing campaigns, visitor behavior on your website, and more, all to ensure that each is tweaked and perfected to maximize success. In fact, data’s utility will only increase in coming years as the amount of data grows larger and wearables and the internet of things continue to grow in the marketplace. Experts believe that there will be 34 billion connected devices in the IoT by 2020, and all of these devices, whether they are health trackers or smart refrigerators will provide more consumer data than ever before for businesses to tap into to boost their margins. Furthermore, research points to the trend that businesses will continue to invest in this data as well. It’s estimated that the revenue of business analytics and big data will grow to more than $203 billion annually in 2020, up from $130 billion in 2016.
The benefits of this data are fairly apparent, but where does the cloud come in? After all, businesses could download analytics software and dive into the data they collect themselves. The issue then becomes one of time and resources. If a business wants to handle the data and analysis on its own, then they have to pay for data storage, management, and analysis, a significant upfront cost, and afterward, there will be the ongoing maintenance costs, including the employee salaries dedicated to running and handling that data. On the other hand, companies can rent all of these things from a cloud DaaS service that is a cheaper solution and effectively puts the problem out of mind.
Not only does using a DaaS service reduce the upfront cost, but these services possess efficiencies that no business could hope to match on their own, including high scalability, universal access, integration with other platforms, and as a specialized service, the upkeep costs will be smaller too. In short, the cloud serves as the bridge between these third party data firms and the companies that need data and/or data processing.
This movement towards cloud computing will impact $1 trillion in IT spending by 2020, according to research firm Gartner. The figure is surprisingly large, but keep in mind that the cloud is impacting almost every industry. Even manufacturing is evolving with cloud computing, and C# developers, professionals that don’t traditionally work with big data, are now involved with OpenAI through its partnership with Microsoft Azure. It seems that every sign is pointing towards a future defined by data in the cloud.
In the coming years, you can expect DaaS to continue to evolve with the marketplace in surprising ways. For example, Thomas Kurian, President of Product Development at Oracle, a software company that provides platform and cloud solutions, believes that the role of cloud applications will shift, and what will emerge is “a set of identity management services in the cloud that will enable users to mix and match data across multiple cloud applications depending on what permissions they have and their role inside an organization.”
What this means for DaaS is that the service won’t just target a business in the general sense, but it will be able to deliver data to specific individuals within the organization based on their access and job description. As DaaS evolves, it will inevitably get smarter and be able to target individuals and provide them with context-sensitive information. In other words, DaaS could become personalized in the next few years and bring important data right to your inbox, no supervisor or menu navigation necessary.