Data as a Service

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What Does Data as a Service Mean?

Data as a service (DaaS) is a cloud strategy used to facilitate the accessibility of business-critical data in a well-timed, protected and affordable manner. DaaS depends on the principle that specified, useful data can be supplied to users on demand, irrespective of any organizational or geographical separation between consumers and providers.


DaaS eliminates redundancy and reduces associated expenditures by accommodating vital data in a single location, allowing data use and/or modification by multiple users via a single update point. Initially used in Web mashups, the DaaS strategy is often used by commercial organizations.

Techopedia Explains Data as a Service

You can think of the DaaS model as new methods for accessing data within existing data centers. It often provides new architecture designs, like private clouds inside a public cloud. Data is usually located in relational databases inside corporate data centers. Typical business applications include customer relationship management (CRM), enterprise resource planning (ERP), e-commerce and supply chain systems.

The DaaS approach delivers the following benefits:

  • Agility: Because data is easily accessible, customers can take immediate action and do not require in-depth understanding of actual data.
  • Affordability: Providers can construct a foundation and outsource the presentation layer, which helps build highly affordable user interfaces and allows more feasible presentation layer change requests.
  • Data quality: Data accessibility is controlled through data services, which improves data quality, as there is a single update point.

DaaS pricing models are classified into two main categories:

  • Volume based model with two approaches: Quantity-based pricing and pay-per-call (PPCall)
  • Data type based model

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Margaret Rouse
Senior Editor
Margaret Rouse
Senior Editor

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.