Is 2021 Seeing an Increase in DaaS Projects?

Updated on :June 20, 2024
By :Aayush Gupta

The pandemic has accelerated the need to improve digital workspaces for businesses to survive its after-effects and uncertainties. To ensure that the workforce is productive and resilient in the long run, companies have to adopt digital workspace solutions.

A recent study shows that more and more C-level execs express involvement in the digital workplace since COVID-19. Using meeting solutions and implementing the virtual desktop infrastructure software to integrate the enterprise chat platforms and desktop-as-a-service, the pandemic rapidly elevated many digital workplace technologies from nice-to-have to must-have technologies.

The advancements in these digital workspace solutions are being powered by the need to replace in-person activities.

 One such digital workspace solution is Desktop as a service (DaaS).

Desktop as a Service

DaaS can be defined as the on-demand, virtual desktop experience delivered to the end-users over the internet from a remotely hosted location. The provider hosts the network, infrastructure, and cloud storage for their clients and streams the virtual desktops to the end-users. It works on the subscription model to buy subscriptions for as many users as they want.

DaaS is quite similar to VDI (virtual desktop infrastructure) but has the advantage of being completely remote. VDI utilizes local servers to provide desktop environments. Companies can mix the two digital workspace technologies using DaaS to offer a complete desktop user experience and VDI to run individual applications. However, this practice is quite rare.

Desktop as a service (DaaS) simplifies data management, increases flexibility, and reduces costs. Still, according to IT leaders, the overall cost of ownership runs high as it gradually becomes an operational expense from a capital one.

We will discuss the costs of DaaS and what leaders and organizations can do for its successful implementation a little later in this post.

DaaS also eliminates the need for physical workstations as the workforce’s desktop environment is hosted on the cloud. This means that your employees can access business apps and data regardless of their location and the device they’re using. Another critical advantage that accompanies the adoption of DaaS is the elimination of security concerns around VPNs and RDP servers.

Other Advantages of DaaS Adoption

  • DaaS enables companies to provide IT support faster and in a reliable fashion, reducing the overall downtime.
  • DaaS requires less computing power than the traditional models, which eventually saves cost and requires less power.
  • Since everything is on the cloud, the data security concerns are lower. Even if the laptop or mobile phone gets stolen, there will be no data loss or threat.
  • It shortens the desktop upgradation and configuration processes because of the centralized approach.
  • Since a DaaS client’s deployment is cost-effective and quick, companies can expand their hiring geographies and tap into the global talent pool.
  • DaaS provides a better overview of the financial side with a pay-as-you-go model, simplifying and forecasting budgets.

The Revival of Desktop as a Service Due to COVID-19

Technology has been around for a decade now. The idea of providing desktop environments dates back to the 1980s that eventually came back in fashion and made a splash in the market as thin-client. But recent events have accelerated its growth, leading to its expansion in the market.

The need to provide remote desktops to the employees, as most of the world shifts to remote culture because of the pandemic, will be the driving force for the upcoming surge in DaaS adoption.

DaaS offers an inexpensive option for all those organizations that are relatively supporting all remote employees and their specific requirements. For instance, remote teams need to access enterprise applications from multiple devices and different locations securely.  This is mentioned in one of the Gartner research notes.  

The powerful and versatile features of DaaS as scalable deployment, multi-desktop management are getting highlighted by the pandemic-induced acceleration in remote work culture. Moreover, companies are in dire need of cost-effective solutions that will enable them to secure remote working spaces to their workforce.

DaaS is proving to be a cost-effective, secure and scalable solution. It can enhance the business’ continuity strength. Since the on-premise option is no longer viable, DaaS enables enterprises to rapidly and stably support and expand their remote workforce.

Gartner reported that Desktop as a Service (DaaS) would see 150% growth in its user base between 2020 and 2023. According to them, DaaS is the fastest-growing segment in cloud ecosystems.

Relatively, the cost of implementation and the total ownership cost of DaaS is high. For its successful implementation, the leaders will have to:

  • Identify the appropriate use cases of desktop virtualization based on their workforce’s job function and location.
  • Minimize the risk of cyber attacks for which they will have to manage the highly distributed endpoints optimally.
  • More importantly, focus on its use cases beyond business continuity. DaaS can be the delivery architecture even when the employees return to the offices. 
  • On the other hand, DaaS will enable companies to have flexible budgeting, lower the need to employ onsite IT engineers, and reduce physical desktops’ maintenance requirements.

What the Future Holds for DaaS

After all, is said and done, such optimistic predictions of DaaS market growth are not new. The previous predictions didn’t materialize for this industry, but maybe they will this time.

Currently, DaaS is optimal for a growing startup with an employee strength of less than 30. But enterprises, who already spend so much on cloud service, adopting DaaS infrastructure won’t be very simple. DaaS still requires the workforce to have physical workstations. Even if the employees agree to DaaS client installation on their personal computers, the security and logistics will be a matter of concern.

The server virtualization might work for enterprises with enhanced client support and employees equipped with the proper hardware. But the IT leaders will still need to figure out innovative and secure ways of onboarding new employees and supporting them without actually setting up in person.

DaaS is still the smallest sector in the global public cloud market. This market faces cut-throat competition from the SaaS (software as a service) market, enabling seamless remote collaboration between businesses and employees. The focus is still on collaboration, distance learning, security, and mobile device management.

That said, the DaaS market will see at least some growth in the coming years. The providers will have to tap into the smaller and medium-sized businesses that might not have committed to a particular data infrastructure yet. Migration for such companies would be easier, and hence, the providers will have a better shot at converting such leads. 

DaaS Growth in Various Industries

Healthcare

With the Government incentivizing technology adoption in the healthcare industry, healthcare IT can expand its horizons with virtual desktops. It enables users to securely log in from any device and allows effective collaboration among colleagues. Having such infrastructure makes it easier for healthcare officials to access necessary apps like billing, data management, etc.

 Retail

The retail industry has to keep up with the constantly changing demands of its consumers to stay relevant and have a competitive edge. While the consumers enjoy more personalized and interactive experiences when shopping online, the burden on retail companies is rapidly increasing. This is where cloud infrastructure can support the retail industry. It already enables the users to securely log in from multiple devices and still have a cohesive experience.

Finance/BFSI

DaaS solutions offer security, mobility, business continuity, data privacy, compliance support, and more; they are pretty popular in the financial industry. They also help preserve time and customer data which are the most critical factors for this industry. Moreover, the employees can access data securely from anywhere and on any device.

Apart from this, DaaS solutions are also experiencing growing adoption by auditing and accounting firms. Big banks and firms involved in financial analysis and stock are looking forward to the DaaS adoption. 

Final Note

2021 will be the year of uncertainties and will be the same for the DaaS industry. The industry has all the right drivers in place, including relatively lower costs, lesser complexity, faster deployment, and, most importantly, business continuity. As long as remote culture adoption is growing, the DaaS market size is bound to grow. The market experts might be skeptical about the predictions not coming to fruition; nevertheless, it will be an exciting market to watch.

VDI tools will also play a significant role in the remote working era and further. It can provide improved flexibility and bolstering security to all enterprise devices. Furthermore, it centralizes the company’s software solutions, offers faster disaster recovery, and enhances the overall user experience. 

If you are planning to bundle VDI software solutions along with DaaS technology, you can explore the various options such as VMware Horizon Cloud, Oracle VM VirtualBox, Ace Cloud Hosting VDI, and more, all available with free versions. 

You can even find more updated information on the best free and open source virtual desktop infrastructure software and implement the same to unleash the customizable features, free of cost. Plus, you can also use the detailed buyer’s guide to upgrade and boost your knowledge of VDI systems. 

Aayush Gupta
Aayush Gupta

Aayush is Sr. Manager, Brand & Marketing at Uplers. He likes to stay on his toes when it comes to marketing and doing things worth risk-taking. He loves traveling and exploring local cuisines. In his free time, reading books with coffee is all he wants.

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