You may have already encountered such terms as SaaS, PaaS, IaaS, or DaaS but still wonder what they mean. These terms describe cloud services that comprise software delivery, data storage, server access, etc. 

They are externally located and accessible on-demand via the internet; thus, they are called ‘cloud’ services.

Cloud services are increasingly popular, and numerous businesses turn to them because of their multiple advantages. It is almost impossible to survive in a highly competitive market without using cloud services nowadays. 

Therefore, let’s take a look at one of the most common cloud services – DaaS. In this article, we will discuss what is DaaS, the challenges and benefits of DaaS, DaaS pricing, DaaS vendors, and many more.

What Is Daas?

DaaS or Data as a Service is a variety of cloud-based solutions used for working with data. These solutions are offered by DaaS vendors, which make business data readily available on-demand over the internet. 

DaaS is often described as a data management strategy that employs the cloud to deliver data storage, conduct monitoring, process data, and so forth. 

Similar to SaaS (Software as a Service), DaaS eliminates the need for downloading and managing software locally. This characteristic makes the cloud service popular among businesses that want to move their data storage from local servers to the cloud.

Benefits Of DaaS

Numerous benefits of DaaS that can significantly influence business performance attract large companies and small firms worldwide. 

• Increased accessibility – Businesses that adopt DaaS are not tied to local storage systems and servers since they store data remotely. Therefore, they can collaborate with global partners efficiently. Simultaneously, employees can access data without coming to the office while saving their time and energy.
• Better products – DaaS helps companies realize the weaknesses and strengths of their products. Based on this, they can minimize the weaknesses and build on the strengths leading to product improvements. 
• Cost-effectiveness – Those who perfectly understand what is DaaS emphasize that its most considerable advantage is cost-effectiveness. With DaaS, there is no need to invest financial resources in maintaining and managing data because everything is done by DaaS vendors.
• Little setup time – Companies can start to store and process data immediately while employing DaaS. In contrast, those businesses that keep data locally spend much more time on setup. 
• Enhanced user experience – Businesses that are aware of what is DaaS make data-informed decisions that boost customer experience. Therefore, they observe improvements in customer retention and customer lifetime value. 

Challenges

Despite all the benefits of DaaS, some challenges should be addressed.

• Security – Employing DaaS requires companies to move data from their local storage to the cloud. In this case, security risks concerning data in transit may arise. Therefore, businesses are advised to take DaaS vendors’ reliability into account and avoid viewing DaaS pricing as a primary factor in choosing a provider of the cloud service. 
• Privacy – It is vital to ensure the highest possible level of confidentiality of personal data while using DaaS. Otherwise, businesses may lose millions of customers and have their reputation tarnished. 
• Compliance – Companies need to learn everything about data privacy regulations established within their industries and in their countries before implementing DaaS solutions. It may take much time and energy, but this step should not be avoided.

Examples Of What Is DaaS

In order to get a better understanding of what is DaaS, let’s look at some examples of DaaS vendors. 

Snowflake. Snowflake is one of the most successful DaaS companies. It offers data lake, data engineering, data warehouse, data sharing, data applications, and data science. The clients of Snowflake are large international businesses that operate within different industries, ranging from finance to education. 

Oracle. Oracle DaaS provides MySQL and NoSQL databases, reduces internal management workloads, and simplifies database access. Businesses turn to Oracle DaaS due to its excellent performance, easy scalability, and wide availability.

Afflix. Affix is a good example of a DaaS vendor that operates within one industry – iGaming. It offers all the benefits of DaaS by providing its clients with extensive information on iGaming companies. With different DaaS pricing models, Affix enables iGaming affiliates to easily access its database, improve their content, attract more loyal clients, etc.

What Is DaaS Pricing Model

Companies may wonder what is DaaS pricing and how it works. Generally, two pricing models are employed by different enterprises, depending on their needs.

Volume-based model. This pricing model is the most common since it is more convenient for DaaS vendors to charge companies based on the volume of data they receive rather than its type. Multiple businesses that are familiar with what is DaaS turn to this model to enjoy the enormous benefits of DaaS. 

Data type-based model. There are different types of data, and many DaaS vendors charge based on the data types businesses choose. For example, one company may need financial information, and another will search for geographic data. A DaaS vendor that offers the data type-based model will charge them differently, even though the volume of the data required is the same. 

Who Uses DaaS?

All the companies that apply data-informed business models can benefit from DaaS. Since the role of data is becoming more significant, DaaS is relevant to every business.

Tracking, storing, analyzing, and implementing data insights help any enterprise advance its products or services, boost customer satisfaction, and improve performance. Therefore, businesses need to recognize what is DaaS and make the most of it. 

Here are several examples of how to use DaaS:

• Benchmarking. One of the greatest benefits of DaaS is that it makes comparing your performance against competitors incredibly convenient and efficient. Benchmarking done employing DaaS can lead to unprecedented business outcomes.
• Consumer Research. Consumer insights acquired while using DaaS are beneficial for companies since they can use this data to adjust their products and services, introduce new features, improve customer support, etc. 
• Business Intelligence. Companies consider DaaS vendors because the latter can assist them in boosting their business intelligence. DaaS improves the way businesses approach decision-making by turning their poor-informed decisions into well-informed conscious choices.

What To Consider While Choosing DaaS Vendors?

If you have already acknowledged many benefits of DaaS, you may want to find good DaaS vendors. Several factors determine which DaaS solutions are better than others. 

• Price – Companies are advised to search for DaaS vendors that offer fair prices. It is also crucial to pay attention only to those options that do not require you to exceed your financial capacity. 
• Reliability – Since security and privacy are the central challenges of what is DaaS, businesses need to work with trustworthy and experienced vendors.
• Scalability – Companies should take into account how scalable DaaS solutions are before investing in them to avoid future challenges.

Wrap Up What Is DaaS

DaaS is a cloud service widely adopted by enterprises of all sizes. It has multiple benefits, such as enhanced quality of products and services, cost-effectiveness, widespread availability, and many more. Companies from every industry utilize DaaS to make their decisions more sensible and reach better business outcomes. 

DaaS vendors continuously improve DaaS solutions, offering even more advantages. Those companies that ignore the importance of DaaS now risk losing their market share in the future. In contrast, those businesses that employ DaaS effectively win over competitors and enjoy constant growth.

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Tags: cloud services, DaaS, DaaS pricing, DaaS solutions, DaaS vendors, what is DaaS