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Why Are Desktop as Service (DaaS) Profits So Elusive?

Why is making a profit with Desktop as a Service like catching a unicorn in a field of rainbows? It’s elusive but not impossible. 

The allure of DaaS is clear – who wouldn’t want to pay per user per month for a service that delivers a desktop with all the apps they need?  

For IT providers, the appeal is just as strong – DaaS represents a new, potentially very profitable revenue stream. But so far, that profitability has been very elusive. In this blog post, we’ll explore some of the reasons why DaaS profits are so hard to come by. 

Defining DaaS and its benefits 

DaaS, which stands for Desktop as a Service, is a revolutionary platform that provides users with access to cloud resources through a secure web interface. DaaS allows users to experience the benefits of virtual desktops without purchasing or maintaining hardware or software infrastructure. Thus, DaaS reduces capital and operational costs by eliminating the demands of purchasing physical desktops and continuing expensive maintenance updates for their deployed systems.  

DaaS makes it cost-effective and simple for people to scale up virtual desktop services quickly, as DaaS pricing can be tailored according to user needs. With DaaS, there is no need to worry about ever-changing technology because it is entirely scalable and adaptable to popular IT trends over time. 

Why have DaaS profits been so elusive? 

Despite the current rise in popularity of Desktop as a Service (DaaS), DaaS providers have yet to find a profitable business model. The pricing for businesses seeking DaaS services is typically higher than the on-premise equivalent, yet companies are still hesitant to switch due to security concerns. Unfortunately, what makes DaaS attractive – its cloud delivery system – also further erodes potential profitability since it incurs the cost of an additional third-party provider.  

To help alleviate those concerns and eventually unlock its full profits potential, DaaS providers should work to educate customers on the benefits and security of this technology. 

Obstructions for DaaS growth 

The Desktop as a service (DaaS) market is growing quickly but still faces many challenges in its path. One of the biggest obstructions to its growth is the pricing model. Traditional desktop services are known for being expensive, and while DaaS provides an attractive alternative with greater scalability, there is still much progress to be made in terms of affordability. Furthermore, this service can require a high level of technical expertise to manage, which often drives up the associated cost.  

Lastly, many organizations need more infrastructure to host desktop-as-a-service solutions, creating further limitations compared to on-premises technologies. With these roadblocks in place, potential customers may be discouraged by the costs and complexity associated with DaaS adoption. It will be critical for vendors and providers to balance competitive pricing with package customization to succeed in this increasingly competitive market. 

What needs to change for DaaS to become more profitable? 

Data as a Service (DaaS) has the potential to revolutionize how businesses operate, but there are still some roadway blocks to its success. A big challenge for DaaS providers is making their services financially viable and profitable.  

To maximize profitability, DaaS companies must carefully consider the complexities of their pricing models and the underlying technology used to access and analyze data. Finding the right balance between offering low prices for customers and deriving revenue from data analytics will be key to making DaaS more successful in the future.  

By getting creative with their pricing structure, based on ease of use and quality/quantity of data provided, DaaS providers can create a unique value proposition that will lead to both customer satisfaction and greater profits. 

The future of DaaS 

The future of DaaS (DaaS) looks incredibly promising. As more businesses switch to DaaS solutions, the DaaS market is projected to grow dramatically. DaaS offers an unbeatable combination of accessibility, scalability, cost-effectiveness, and customizability, making it one of the most powerful software development solutions available today. 

DaaS pricing makes it accessible to virtually any organization, no matter the size and complexity of their operations, while its open API (application programming interface) allows for a genuinely personalized DaaS environment. These features make DaaS one of the most effective ways for companies to streamline their technology investments across multiple channels and regions.  

What’s more? The continuing proliferation of DaaS technology also means greater availability of DaaS tools and services as well as increased competition which translates into lower DaaS pricing for consumers. 

Desktop as a Service (DaaS) has been gaining ground in the cloud market for years yet has not seemed to take off as profitably in a shorter period of time. Though there are many benefits of deploying DaaS for an organization, the lack of profitability has put many organizations off from investing in it.

This can be attributed to three main reasons: cost, the complexity of deploying and administering it, and lack of industry standards. 

To make progress at being more profitable, the cost needs to come down significantly, it needs to be simpler to deploy and administer, and firms should push towards creating industry standards. As we move forward into 2021 and beyond, companies need to keep up with changing technology trends in order to stay competitive – DaaS is no exception. If you’d like to explore adopting a DaaS solution into your IT infrastructure or just learn more about how it could benefit you now or in the future, get a demo or get in touch with one of our consultants today.