Sustainability Magazine May 2023 | Page 51

need to reduce our carbon footprint . But how ? For many consumer goods , the majority of emissions come not from manufacturing , but in their use phase : around 50 % for computers , closer to 50-80 % for conventional cars . The smarter use patterns of XaaS models promote a more sustainable use of natural resources and waste reduction , aiding our economies on the path to net zero .”
According to a report conducted by SYSTEMIQ , XaaS models can deliver both environmental benefits and economic value .
“ More and more companies are recognising the environmental impact of XaaS models – but they do not always leverage the full potential ,” said the report , which was conducted by SYSTEMIQ on behalf of the SUN Institute .
It then goes on to state : “ Whether as companies or consumers , we know we
XaaS model growth since COVID- 19 pandemic According to research by professional services firm EY , businesses ’ readiness to adopt XaaS models has risen dramatically since the onset of the COVID-19 pandemic , with the technology sector leading the way .
EY ’ s report , As-a-Service Business Operations & Transformation : When customers change the way they buy , should you change the way you sell ? – which surveyed 1,200 organisations to gauge adoption trends of XaaS across industries – found that , while only 9 % of surveyed businesses have completed XaaS transformations up to this point , most ( 85 %) are at the progress stage , whether that is piloting or operating at scale .
The report found that more than half ( 54 %) of responding businesses said they are prepared to adopt XaaS , while the number of businesses that are not yet ready has fallen sharply – from 13 % in 2019 to just 2 %.
With the market maturing at such pace , businesses are increasingly migrating from basic subscriptions to consumption-based models and outcomes pricing . While 60 % of all organisations surveyed are currently using subscription models to charge for XaaS offerings , 52 % told EY they intend to shift to consumption models in the next three to five years . sustainabilitymag . com 51