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If you use a form of technology to run your business, then you’re probably aware of the term “disruptive technology.” It’s defined as any technology that can shift an entire industry, ultimately leaving other, related forms of technology obsolete in the wake of its adoption. Good examples of disruptive technology include: CDs replacing tape cassettes (and cassettes replacing record players), zip drives, USB ports, LEDs and many others.
Ever since Software as a Service (SaaS) became a business model, it hasn’t really experienced much disruption. The typically acquisition of software companies by bigger ones continues (case in point: Magento being purchased by Adobe in a recent, landmark transaction).
Since the inception of SaaS, new entrants have included XaaS, or Everything as a Service,and now, turning the point once again, is the newest model: Value as a Service (VaaS).
What is Value as a Service (VaaS)?
Value as a Service is a unique sector of the SaaS industry that’s built around a value-delivered and value-received model. For example, a repricing software for Amazon sellers that automates repricing across their online store to keep them in the “Buy Box” delivers an immediate and strong return on investment. It can be considered a VaaSmodel because it automatically adds value to any business using it. This, of course, is just one small example of qualifying services that fit into this model.
Common Identifiers of VaaS
To better understand how VaaS works here are some common identifiers that you can use to determine whether a software solution returns investment and delivers immediate value.
- Product delivers an immediate impact on value, like a repricing software service would.
- Has case studies that back the immediate short term return on investment and long term model.
- Benefits the user and augments or enhances the value of the product or service they deliver to customers.
- Reduces the cost of doing business and helps the business owner improve return on investment.
These are just a few examples of how a VaaS model works and why it’s being embraced by business owners the world afar.
An Example of VaaS in Use
One of the better examples that can be offered of VaaS being put to use is Ready Cloud’s ecommerce CRM solution that connects multiple store channels online. Such a solution is centered on helping to improve the customer journey by giving the store owner a way to connect all the dots across their multiple sales channels. Built-in features help the owner immediately reduce cost while giving them the tools and automation they need to improve their customer service model, shipping and returns, all key components of running any successful online store.
How Online Businesses Benefit from VaaS
Technology and today’s SaaS systemsare designed to enhance and streamline our business efforts in the workplace. The VaaS model, however, veers from the traditional model. Where the SaaS model is centered on paying a monthly fee and getting to use the software to streamline processes or save money and reduce work hours to complete tasks, the VaaS model adds something more by giving the user an immediate return on their investment in the short and in the long term, while also providing a software solution that saves them time via automation.
Neither model is a bad choice for an ecommerce merchant. In most cases, though, they’ll find that a VaaS model helps them improve their bottom line while offering the convenience of automation that the world has grown to rely on with the SaaS model. It’s another exciting shift for software.