Importance of Big Data is evident in every industry and in every scale of business. The need for greater storage capacity, faster data services, and agile solutions has increased substantially over the past couple of decades. These are the needs of the new-age enterprises to sustain and survive in a competitive market. These needs have inspired enterprises to go beyond an internal IT team and look for a holistic data solution, even if it required outsourcing. Data as a Service (DaaS) is a data management strategy where companies outsource data service. Be it—data storage, processing, analytics, or monetization, these services are offered via a cloud network where data is stored in servers and transmitted through the internet.

Traditionally cloud technology was only meant for hosting an app or basic data storage. Although, the recent innovation in computing power and internet speed has enabled cloud computing services to go beyond its legacy approach. This has enabled enterprises to strategize how they can use integrate data at all the points of sale and touchpoints to know and serve their customers better. Along with this, cloud computing is responsible for analytics which requires higher computing power, therefore, greater cost.

As managing cost is one of the biggest challenges in Data as a Service, it is clearer that monetizing data is even more essential. Therefore, businesses partner with data service enterprises that offer a holistic solution and flexible data services as per their business’s needs.

However, some DaaS firms limit the number of tools that a business can use, to offer services at a low cost. Users can work with only those tools that are hosted on or compatible with their DaaS platform, as opposed to using tools of their choice. Hence, business leaders must prioritize agility and flexibility while building their DaaS strategy.

Although, depending on the location and the region you are operating your business in, this strategy can change. As countries have different data and privacy regulations, it can affect your DaaS strategy. For instance, few countries may have privacy laws that require Data of a consumer in a specific country, be stored in local servers. As the data and privacy laws differ from one country to another dealing with different government compliances is one of the roadblocks in DaaS. This also may lead to an addition in latency and cost of accessing data globally.

In the times where companies focus on rapid and disruptive growth, an increased latency time is challenging for companies’ growth. Accessing data of a consumer in Sweden from the US can be difficult because of the transmitting time between servers in two different countries. As a result, companies store these data in multiple locations for faster delivery of data.

With growing consciousness about data privacy and security, the DaaS service must comply with all the regulations and be transparent with consumers. In the times where consumers are more aware of the usage of their data, focusing on building security features and trust is crucial. Encrypting data, building a firewall system, and a clear privacy policy helps build a trustworthy relationship between a brand and a consumer.

Be it flexibility, agility, security or latency, these challenges require a holistic solution that guarantees quality standards.