Everything You Need to Know About DaaS (Data as a Service)
We are familiar with SaaS, Software as a Service. It refers to subscription-based, centrally managed platforms and services that allow you to automate all of the tiresome manual tasks that, if left to your own devices, may take all day. But what is DaaS and how does it work?
The Economist magazine notably asserted in one of its earlier issues, “Data is the new oil”. A modern-day company can't go anywhere without data, just as a car can't go anywhere without gasoline.
The data market is continuously expanding, with the newest methods of obtaining data in its many forms through growing connectivity tools such as mobile phones, IoT sensors, and so on. All of these technologies provide new types of data and innovative methods to analyze them.
In this article, we will try to break down a relatively recent concept, known as DaaS. Along with explaining DaaS, you’ll get to know about the benefits of using DaaS in B2B and its promising future.
Table of Contents
- What Is DaaS?
- Data as a Product (DaaP) Model Vs Data as a Service (DaaS) Model
- Application of Data as a Service (DaaS)
- The Key Elements of Data as a Service (DaaS)
- Benefits Of Using DaaS For B2B Businesses
- Challenges of Data as a Service (DaaS)
- The Future Of Data as a Service (DaaS)
- Final Word
- Data as a Service (DaaS) is a data management strategy aimed at using data as a corporate asset to improve company agility.
- DaaS is a part of the "as a service" products that have grown in popularity since the internet's development in the 1990s, which started with the launch of Software as a Service (SaaS).
- The Data As A Product (DaaP) model is the simplest model which means to have required data from the data team. On the other hand Data as a Service (DaaS) works more like a strategic decision partner.
- Whether it’s your sales team or marketing team, DaaS is used by multiple business teams and departments to optimize the business and has a wide range of applications.
- Daas identifies the best and cleanest methodology and timing for gathering data and collecting insights.
- It aggregates the process of compiling data points for a specific purpose which are again analyzed and summarized in the form of actionable insights.
- For B2B, DaaS works as a framework for monetizing big data and can help you to stand out from the competition and boost your ROI.
- With DaaS, you can have high-quality data without costing a fortune. Your innovations will never fail because every step you take is backed by big data.
- Data Privacy concern is one of the major issues when it comes to DaaS.
- One of the factors contributing to the success of DaaS it is the growing demand in industries to gain actionable insights.
What Is DaaS?
Data as a service (DaaS) is a data management strategy that uses the cloud to provide storage, integration, processing, and/or analytics services over a network connection.
If we compare DaaS to SaaS, it works almost similarly. The way SaaS eliminates the necessity of software installation on devices and gives users access to digital solutions over the network, DaaS also transfers most of the storage, integration, and processing operations to the cloud.
Data as a Service manages the stream of information and makes it accessible to all departments, anytime and anywhere. DaaS providers, like everything else in the “as a service” family, deliver data-centric insights via the cloud in a safe and cost-effective manner.
DaaS isn't a set-it-and-forget-it service that you can check in anytime you have a spare moment and immediately get a list of data-driven insights. Decentralizing datasets in a comprehensible and actionable manner takes a lot of strategies, research, and structuring.
Data as a Product (DaaP) Model Vs Data as a Service (DaaS) Model
If your company already has tons of datasets from the data team and brands itself as a data-driven company, you might wonder, what exactly is the big deal about DaaS.
Before we go any further, let’s first understand the difference between the DaaP and DaaS models.
In Data as a Product model, the data team's work is to deliver the data that the company requires for any reason, whether it's making decisions, creating personalized products, or identifying fraud. It is as simple as that.
The company’s data is treated as a product in the DaaP model and the flow of data is unidirectional, from the data team to the company.
This model is not new at all and big companies have been practicing it for a long. But they have been chasing the trade-off and gotten wise over the years. A new model started emerging in consonance with DaaP, which is DaaS.
The data team collaborates with stakeholder groups to solve particular issues utilizing data under the Data as a Service model.
Data team members have greater functional knowledge, may assist particular stakeholder groups (for example, a Product Analyst and a Marketing Analyst), and are responsible for providing insight rather than rows and columns.
In a DaaS model, the focus of the data team is on answering questions rather than offering tools for others to solve their own issues. The main difference is, one is a service-oriented partnership and the other is a product-oriented SLA.
Application of Data as a Service (DaaS)
Here are three examples of where DaaS can come in handy.
A litmus test of your company’s growth
DaaS is a useful tool for comparing your company's performance to that of competitors. You may access worldwide data and quickly assess aspects like financial performance, turnover, and other metrics with percentile breakdowns using Data as a Service.
Internal users will benefit from DaaS since it streamlines metrics, integrates data sources, and automates analytics. Data scientists may undertake dynamic transformations and integrations using real-time data and then utilize the insights obtained for better decision-making.
Another application of DaaS is data markets. Users may purchase and sell data on these sites all in one place. Data markets allow various types of data to be exchanged, including demographic data from business intelligence platforms and consumer data from customer relationship management (CRM) systems. For data scientists, the ability to instantly buy and sell all of this data is a valuable asset.
Till now, it seems one of the most committed applications of DaaS. In the coming years, the global data as a service (DaaS) market is anticipated to develop gradually, reaching a turnover of 10.7 billion dollars in 2023.
The Key Elements of Data as a Service (DaaS)
Providers of DaaS are entrusted with handling large data volumes and subjecting them to rigorous analytical scrutiny. The key elements of Data-as-a-service include Data collection, segmentation, correlation, visualization, and analytics.
1. Data Collection
In this process, structured and unstructured data are collected by identifying the best and optimized methodology. Once the quality and pattern of the obtained data are tapped down, they are ready to transform into the analysis.
2. Data Segmentation
Data segmentation is the method of splitting and grouping similar data based on predetermined parameters so that it may be used more effectively in marketing and operations. The importance of data segmentation is not limited to your sales and marketing teams only. Data segmentation is critical to helping your company attain its full capability, regardless of the size and nature of your business.
3. Data correlation
The method of using statistical analysis to identify a significant link between two or more data points is known as data correlation. Its goal is to figure out how the data is linked and mapped. A high correlation indicates that two data points have a strong link, which improves data analysis and decision-making.
4. Data Visualization
The process of putting massive data sets and metrics into charts, graphs, dashboards, and other graphics is known as data visualization. The visual depiction of data makes it simpler to spot and communicate real-time patterns, outliers, and new insights about the data.
5. Data Analytics
Data analytics is a broad concept that refers to a variety of data analysis techniques. Data analytics techniques may be used to any sort of data to get insights that can be utilized to improve things. Trends and metrics that might otherwise be lost in a sea of data can be discovered using data analytics techniques. This data may then be utilized to improve a company's or system's overall efficiency by optimizing operations.
Benefits Of Using DaaS For B2B Businesses
Improved Customer Experience
According to Econsultancy and Adobe study, 65 percent of respondents said data analysis was critical to improving customer experiences for client-facing marketers, and 41 percent of B2B professionals concurred. In today’s world to improve customer experience personalization has no other competitor.
DaaS can assist businesses in creating personalized customer experiences by utilizing predictive analytics to better understand the customer and trends, serve them better, and increase loyalty.
DaaS is a framework for monetizing big data
As the volume of big data is increasing, one of the biggest challenges for companies we hear time and again is the lack of concrete plans for turning difficult data into actual revenue.
Bringing data into your company is simply a tiny portion of what it takes to power your company's growth and increase cash flow.
You must have a plan in place to use the data you acquire from your consumers to generate better experiences with your brand in order to get a return on the thousands or millions of dollars you spent putting up these robust systems.
Data as a Service (DaaS) set your B2B Company apart from the competition and gets you closer to seeing king-sized sales charts.
Improved Data Quality is one of the most inherent benefits. This is because to the fact that the majority of data access is regulated by the data service itself. This provides an additional degree of protection as well as enhanced data quality.
Providers in the DaaS market, like any other Cloud-based service, may quickly install their data-delivery apps, removing many of the expenses involved with storing and hosting these complex data sets in-house.
For example, providers may help companies in saving money through the display layer of their interfaces and apps. They can design them in a way that makes it simple to switch between location-based and organizational assets on the go.
All you need is access to the internet. The DaaS model allows you to use a cloud provider's services without having to invest in expensive hardware such as PCs and servers.
Your innovation will not go to waste
You can introduce more innovations with less risk if your approach is based on a big amount of high-quality data. Ideas based on this data are more likely to be implemented effectively.
Most importantly, the speed with which this is implemented improves dramatically, owing to data access, which serves as a source of knowledge for new projects and stimulates growth.
Set strategies with full compliance and support
Finally, working with a DaaS provider relieves you of the burden of data management in your company. So you don't have to, your provider will ensure that the data they deliver complies with GDPR and any other applicable regulations.
Furthermore, the finest DaaS providers offer outstanding customer support teams that can assist you with any solution you'll ever need.
Challenges of Data as a Service (DaaS)
Lack of Infrastructure
As you can see from the above survey, a lack of infrastructure is enough to keep more than half of the companies from conducting efficient operations. If a company is not built around the ability to process data, it will not have the necessary tools to properly collect, store and clean data to ensure you are extracting the most accurate insights.
Lack of access to available data
It isn't enough to have the infrastructure. You must also be aware of where data is available and how to get it. According to the report above, 37% of companies don't know where to start collecting data, while a recent survey of Accenture revealed that 80% of enterprises had unorganized and inaccessible data.
Pictures, videos, social media feeds, internet material, handwritten feedback, and other related features are examples of unstructured data. Does this sound like your company?
That lack of data access might be costly since you'll be sitting on huge and expensive data sets that aren't actively contributing to growth prospects if you don't know where or how to seek insights.
Data management issues
Any linked datasets should, in principle, benefit from the nature of DaaS clouds. To achieve high levels of Data Management, however, Data management can't just rely on the nature of a Cloud platform.
Data integrity in the DaaS environment must be validated and double-checked to verify that it is consistent with other data. This degree of verification can be difficult to execute, but it's an important part of ensuring that your company's data quality requirements are met.
Personal data privacy issues
According to Accenture, an increasing number of customers are turning off personal data taps, making it increasingly difficult for businesses to get the information needed to improve customer experiences.
Around 44 percent of US consumers are dissatisfied with companies' lack of customized service. Despite this, 49% of customers expressed concern about personal data protection, prompting them to refuse personal data tapping.
This implies that, in order to keep user data to drive personal experience and increase sales, businesses have to find innovative ways to collect data. Simultaneously, they need to master the art of using the obtained data for catering to individual needs.
The Future Of Data as a Service (DaaS)
Your eyes will pop out of your heads when you will read this stat: a 10% improvement in data accessibility will result in more than $65 million in increased net profits for a typical Fortune 1000 business. Those are genuine figures on which you can make beds and can stake your reputation.
The global Big Data as a Service (BDaaS) market is expected to develop at a 30.5 percent compound annual growth rate (CAGR) from USD 11.3 billion in 2019 to USD 42.7 billion by2024, according to MarketsandMarkets.
The popular IT research firm Gartner has also affirmed that the Data-as-a-Service model is expected to serve as a launching pad for the Business Intelligence (BI) and Big Data analytics markets.
Currently, the business intelligence market is dominated by what Gartner refers to as a "build-driven" business model. Enterprise businesses, on the other hand, just license software so that they may build analytics on top of it.
Companies will be able to subscribe to data services that include BI and analytics apps in the software license, thanks to the DaaS. Does the future of DaaS look promising yet?
DaaS is set and uniquely suited to deliver the features that today's data-driven businesses desire, demand, or, even if they aren't aware of it, undeniably require.
Despite the fact that DaaS is a relatively new solution, getting started with it is easier than you think. DaaS solutions are simple (and DaaS providers give technical assistance), you can get your DaaS system up and operate without needing to hire professionals.
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