Data as a Service or DaaS is structured, easy-to-understand data available on-demand to customers. A similar concept to Software as a Service, here data is offered as a product. A recent market study conducted by ResearchandMarkets.com states that IoT (Internet of Things) DaaS is growing nearly three times as fast as non-IoT DaaS as machine-sourced data is growing twice as fast as non-machine data. This is the result of the rapid growth and adoption of IoT applications and services.
Much like the quick popularity and acceptance gained by IoT, IoT DaaS is steadily becoming the preferred choice for customers. Big Data is vastly recognized as a vital part of business decision-making, and increasingly, corporates are depending on this information to develop smarter market strategies. However, raw data is complex, unstructured, and exists in large volumes that the majority of corporates are not equipped to manage. This has created a need for services such as DaaS, where data is being collected, processed, managed, and straightforwardly represented to keep this process simple for end-users.
These are the key reasons why companies are opting for IoT DaaS:
Collecting large volumes of data is simple however, what makes that data useful is how it is analyzed and presented. In the case of DaaS, as the data that is collected is processed and managed by the service provider, it takes the headache off the customer. Data Management being the expertise of the service provider ensures systems are in place to protect and store data, and data is processed through layers to filtering and analysis. Simply put, it’s like removing the husk from the rice. Here, the customer receives high quality, potent data via a simplified user interface ready for business application purposes.
Most large companies face the issue of data/information silos as there is a lack of communication and information sharing between different business verticals. There is a very high chance that valuable data collected by one vertical can be applied in improving the processes of another vertical. For instance, sales data can be used by supply-chain/operation teams, and operations data can be helpful for the finance team, and so on. This issue is addressed through DaaS, as all data is available to all users eliminating team/department barriers.
Data Integration & Implementation:
It is common in medium and large-sized companies to face roadblocks when attempting to integrate data. Most companies have complex processes and multiple functions that make integration a resource-intensive task. When cooked data is provided in comprehensible numerics and terminology, it becomes quicker and easier to integrate with existing systems and internal processes. Furthermore, implementing tactics to continuously improve business functions becomes more streamlined and growth-driven as decisions are backed by accurate data.
DaaS is a Cloud-based offering, which means companies can skip on having in-house data infrastructure or tech architecture that is needed to manage, store large amounts of data. Data can be conveniently accessed anytime and from any location. Besides, retrieving historical data from the cloud is as simple as viewing real-time data. This allows customers to have greater flexibility in terms of expanding or narrowing their data streams. DaaS offers companies to have agility as data is simply a click away.
Data collection and management when done in-house usually require huge investments and resources. Hiring skilled professionals, building IT infrastructure, developing data processing software and interface, results in escalated costs, lengthy timelines, and substantial resources. Companies can offset costs simply by partnering with a DaaS provider and integrating their processes with a ready-to-implement application. With a short pilot period and quick tweaks and trials, companies are powered with continuous streams of valuable data without having to lock-in large sums of money or intensive project commitments.
Looking at past and current trends, data will continue to rise in its significance. Its use and application are likely to spread wider and deeper within our ecosystems. According to research conducted by Cisco, 5 quintillion bytes of data produced every day, and by the end of the year 2020, the IoT will comprise more than 30 billion connected devices. This supports the trend that more companies will opt for providers that offer DaaS solutions to leverage the power of data.
Remember the time when computers entered the mainstream business world? Some companies fought the change and continued to depend on manual, paper-based processes. Eventually, it became impossible for businesses to survive and grow without adopting technology. We are already seeing the benefits gained by early adopters of Big Data and Data Mining. These businesses are evolving and expanding, making a strong case for others to join the bandwagon. Data is the latest game-changer of the business world and will continue to gain prominence.
Bain & Company predicts the combined markets of the Internet of Things will grow to about $520B in 2021, as IoT grows so will the data it creates and the need for data management solutions. Companies will increasingly opt for DaaS as it benefits supersede that of having an entire data set-up in-house. DaaS solutions support and improve business operations, efficiency, and smarter decision-making.
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