Customer Success, SaaS | 5 MIN READ

What Is Data as a Service (DaaS) – An Essential Guide

What is DaaS, data as a service? Read on this article to know more its definition, benefits as well as challenges.

Simran Mohanty
Oct 13, 2021

What Is Data as a Service

What Is Data as a Service

In order to modernize their work structure and infrastructure, companies are taking to the cloud. One such service, DaaS, or data as a service is booming the industry certainly. If you are looking for data integration, storage, data analytics or data management, one of the most seamless solutions for you is Data as a service. Additionally, by embracing DaaS, an organization can augment the agility of data workloads, reduce time-to-insight, and increase the reliability and integrity of their data. Today in this post, we will walk you through the ins and outs of DaaS and will tell you why that should be your go-to.

Table of Contents

  • What is Data as a service, DaaS?
  • Benefits of Data as a Service
  • Challenges of Data as a service

What is Data as a service, DaaS?

Data as a service is a data management strategy that hinges on the cloud to process data storage, integration, and analytics services via a network connection. In a way, it is similar to SaaS, and helps to deliver applications to the users over a network. It is more like a newer concept that is now beginning to see widespread application and adoption. Now that we have brushed upon the definition of data as a service, let us run over some of its best benefits.

Benefits of Data as a Service

  1. Financial Flexibility: It is DaaS that allows an organization to opt for a trade-off between investment and operating expenses. Not just that, DaaS helps to cut down the capacity on the source systems and the overall costs for licensing as well as for the hardware. Further, it also helps organizations save maintenance costs, as the end users don’t have to work on constant testing and maintenance since DaaS vendors keep their tools updated for end-users.
  2. Increased Speed: One of the greatest benefits of data as a service is its speed and agility. Further, it enhances the speed to use the requisite data by processing the data in a flexible but seamless way. Users can quickly take action without having the need for a comprehensive understanding of where the data is stored or how it is indexed. All of which eventually leads to enhanced agility.
  3. Automated Maintenance: With the help of DaaS provider, the tools and services used on a DaaS platform are maintained and managed automatically. Not just that, they are kept up to date by reducing or eliminating the need for the end users to manage the tool all by themselves. They can do so without really having the need to depend on any other entity.

Challenges of Data as a service

  1. Security Point of View: With the advent of newer technological schemes, it has become a lot easier to get duped with internet breaches. If DaaS vendor’s security measures are not sufficient enough to protect you from potential data theft or data loss, there is a good chance that you might lose out on millions of money. Not just that, you have a good chance of getting the company’s reputation tarnished as well. Before buying a DaaS vendor, make sure you do all you research before picking the best.
  2. More compliance steps: For some organizations, compliance challenges may also arise when sensitive data is moved into a cloud environment. This does not mean that data can’t be integrated or managed in the cloud, but simply that companies subject to special data compliance requirements must ensure that they meet those requirements with their DaaS solution. For example, they may need to host their DaaS on cloud servers located in a specific country in order to remain compliant.
  3. Data hygiene: Sometimes, when an organization deals with an unknown DaaS vendor, it could be possible that they might club in their internal data with the provider’s data set but vendors’ and the organization’s set of rules during data preparation might not match. Often times, this leads to dirty data which is not a great thing for the health and hygiene of your company. Organizations should ensure that the vendor understands how to cleanly sync with other data sets.
  4. Privacy: Make sure that the private information or data that a customer has shared with you, never goes leaked where the privacy is compromised. Data shared might include confidential/personal information. You as an organization need to make sure that DaaS companies are providing the requisite measures to ensure confidentiality of personal data.

Parting Thoughts

Data as a service is tending to become a thing of the future. Most of the companies are already leveraging DaaS to enhance and simplify the process. This might include obtaining insights from the given set of data, to achieve better data integration and ensure privacy and governance at all times. In turn, those companies are in a position to maintain an edge over competitors and streamline their internal operations through more effective data governance and improved data integrity.

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Originally Published October 13th, 2021, Updated October 13th, 2021

Simran Mohanty

Simran hails from the content marketing backdrop with extensive knowledge in blogs, articles, and technical whitepapers in the non-fictional domain. She uses her 'gift of the gab' to explore new possibilities on her way and to make an exquisite impact on her readers. In her spare time, she likes to read journals on artificial intelligence or play with her cute kittens.

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