Data is taking on a new role in global firms as external data becomes more important in business analytics. Data is no longer just an organisational asset; it’s also a distinct income potential through data-related services offered under the umbrella phrase “Data-as-a-Service” (DaaS). DaaS vendors are either replacing traditional data analytics services or gladly clustering with existing services to provide consumers with more value.
The primary competency of the DaaS provider is “curating, aggregating, and meshing” multi-source data to produce value-added intelligence or information. DaaS companies typically deliver “information” across a digital network, which is frequently cloud-based. As a DaaS service, corporations can “purchase, sell, or exchange” soft-copy data. IDC’s Data as a Service report provides an overview of DaaS demand and supply trends.
DaaS as an Emerging Market: Market Size Potential
Businesses of all shapes and sizes around the world have suddenly realised that DaaS offers not only new revenue streams but also a way to “reshape the business world through competitive intelligence.” As the cost of data storage falls, the need for more data in circulation grows. According to MarketWatch, the DaaS industry is predicted to increase at a CAGR of 10% between 2019 and 2024.
The efficiency of big data is now hampered by data silos with limited interconnectivity. DaaS provides an immediate solution for data exchange within and outside of an organisation. Three years ago, a Forbes article predicted the power of DaaS as an emerging economic opportunity. What Can Big Data as a Service Do for Your Business, according to Big Data as a Service: What Can It Do for Your Business? The BDaaS business “has the potential to grow to almost $2.55 billion, or 15% of the [total] Big Data market,” according to the report.
The Business Model for DaaS
Organizations that provide DaaS services have the infrastructure in place to supply value-added data services, including Data Science, engineering, AI, computer science, and training. Furthermore, the operating business model must ensure that income generated by DaaS services exceeds the initial investment and operating expenditures of the company. DaaS is often a subscription-based business, with customers paying for a set of services or specific services.
This business model has its own set of data piracy issues. It is difficult for a business operator to flourish in this industry without a comprehensive understanding of the licence status or usage agreements of sourced data. In general, all DaaS business operators create and employ a License Agreement to protect the intellectual property rights (IPR) of the data they sell, process, or analyse against copyright infringement, subscription-rule infringement, or usage infringement. In the end, like with other digital assets, the client retains the trust.
What Does the Future Hold for Big Data as a Service (BDaaS)?
The concept of Big Data as a Service is encapsulated in the post Big Data as a Service. The “virtualization” of data centre activities, which many firms cannot afford, is the most significant benefit of BDaaS, as mentioned in this piece. The most advanced analytics and BI solutions are now accessible for a monthly subscription, which includes the ease of huge data processing, backup data storage, and other back-end services, thanks to cloud service providers. In a nutshell, Big Data-as-a-Service (BDaaS) provides easy data access, cost-effective data storage and processing, and the convenience of a full-fledged data centre without the administrative and operational overhead.
The concept of BDaaS has dismantled the barriers that prevented data silos from being easily accessed. Hadoop won the first round of the democratisation of big data battle by making storage affordable; later, open-source analytics packages made big data analytics accessible to everyone. The “estimated value of the BDaaS market is $30 billion,” according to Forbes’ Bernard Marr. Many BDaaS companies include consultancy and advisory services as part of their packages.
In the next five years, according to a Mordor Intelligence report titled Big Data as a Service Market — Growth, Trends, and Forecast (2020-2025), the United States would most certainly dominate both the global and regional BDaaS markets. BDaaS adoption is currently gaining traction in the banking, professional services, and manufacturing sectors in the United States, as well as in federal organisations. Private cloud networks appear to prevail in the case of BDaaS, as all services are used within a dedicated infrastructure with strong security benefits.
Data Lake-as-a-Service is used as a single-point data repository by Cazena, Data Mart-as-a-Service is used to extend the capabilities of data warehouses by moving workloads or users to the cloud by Cazena, and Sandbox-as-a-Service is used to enable pilot-testing of new ideas and hypotheses by Cazena.
According to a Datafloq post, there are some interesting use cases for marketers in a variety of industries. To target new customers, CRM data is integrated with Hard-to-Find Data (HTFD) and real-time channels in a marketing use case.
The Difference Between Data Science-as-a-Service and DaaS
Packaged Data Science is gradually becoming a popular notion among firms with limited resources, as described by Data Science as a Service. Businesses that can’t afford their own data centre often turn to cloud service providers for packaged Data Science solutions. This solution essentially outsources existing Data Science skills (analytics and business intelligence). This type of service is referred to as “Data Science-as-a-Service,” as opposed to DaaS, which is a data-sharing platform that extends the capabilities of data services. Data-driven insights are packaged and sold as a commodity in DaaS. Due to advancements in AI, even these services may become largely or totally automated in the future, leaving less room for human narration.
Getting the Most Out of Your Organizational Data
Many firms have partnered with sales teams to gather, organise, store, and label data in a user-friendly manner in order to maximise income opportunities. Success stories of corporate data sharing and teamwork, data competitions to alter mindsets, and plug-and-play data-service solutions were among the topics presented at this conference.
Workday, for example, offers a DaaS service that allows tenants to share data across all applications while maintaining the integrity of individual tenant data. Workday’s billing and metering data sets have been housed on a DaaS platform since 2016. This data-sharing platform’s purpose is to keep each tenant’s usage data separate while allowing all Workday applications to interact with and share tenant configuration data as needed. Erol Guney, Principal Engineer and Data-as-a-Service Architect, is the face behind the Workday Cloud platform API.