What is Analytics as a Service (AaaS)?
Analytics as a Service (AaaS) refers to the delivery of analytics software and operations using web technologies. These types of solutions offer companies an alternative to developing in-house hardware setups just to perform business analytics.
To put analytics as a service in context, this type of service is part of a much broader range of services with similar names and ideas, including:
- Software as a service (SaaS)
- Platform as a service (PaaS)
- Infrastructure as a service (IaaS)
What they all have in common is that the service model replaces internal systems with web services. In the Analytics as a service example, a provider may offer access to a remote analytics platform for a monthly fee. This would allow a customer to use that particular analytics software for as long as needed and stop it and pay for it at a later time.
Analytics as a service is becoming a valuable option for businesses because setting up analytics processes can be a labor-intensive process. Organizations that need to do more analysis may need more servers and other types of hardware, and may need more IT staff to implement and maintain these programs. If the company can use analytics as a service instead, it can potentially bypass these new costs and new business process requirements.
Together with the attractiveness of the full outsourcing that analytics offers as a service, there is the option of choosing a hybrid system in which companies use their existing knowledge for analyzes and outsource other components via the Internet. All of this equips modern business with more choices and more precise solutions to meet business needs in markets that are largely based on the availability of big data.