Study: Blockchain Technology Could Leverage the XaaS Business Model
According to a report published by Spend Matters on November 26, 2018, blockchain technology could be successfully leveraged in the emerging Xaas (Everything-as-a-Service) business models and find its use across a number of industries, including food, supply chain, and medicine, among others.
Usage Beyond Cryptocurrencies
The majority of the people seem to use the terms blockchain and Bitcoin interchangeably. However, blockchain technology is to bitcoin what electricity is to the internet. Sure, the internet has revolutionized the world in the past decade or so, but it wouldn’t be possible without the energy to run it.
Similarly, blockchain technology undergirds practically all the cryptocurrencies that exist today. But the utility of DLT extends far beyond the realm of digital currencies. It is seen to have the potential to change the paradigm of practically every industry on the face of the earth, including the nascent XaaS business models.
A study conducted by the Hackett Group opines that the application of blockchain technology could prove to be the missing link that would bridge the gap between businesses and vendors.
This becomes all the more vital in the XaaS business model, as it follows the pay-by-the-use method of charging for the services used, thus mitigating the cost of buying, storing, and maintaining hardware and software on the part of the business. Thus, business would only require paying for the services it uses, not for the setup and installation of the whole infrastructure on site.
The study further states that the XaaS business model could lead to the inception of new, cost-effective business models. It adds:
“For IT, procurement and finance functions working with vendors of software and platform as a service, blockchain will make it more practical and effective to pay for services on a usage basis.”
Per the study, blockchain technology provides an “unimpeachable audit trail,” which could effectively address businesses’ concerns regarding data integrity and manipulation.
Need for Data Integrity
Today, data integrity is one of the top problems being faced by almost every industry.
Be it finance, food, supply chain, law, real estate, or criminology, manipulation of data records can have serious repercussions for the victim party.
However, blockchain technology’s immutability offers a perfect antidote for this virus, as it would ensure that data once fed cannot be altered. Results have already started showing with regard to the technology’s use in tracking goods and materials from the point of origin to its destination.