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What Is Data as a Service (DaaS) & How It Helps

Data as a Service (DaaS)
Augustas Pelakauskas

Augustas Pelakauskas

2023-04-285 min read

Publicly available digital data is an essential asset for businesses in today's era, and looking forward. As data volumes grow exponentially, many organizations turn to cloud-based services to store, manage, and analyze their data. By outsourcing data services to cloud providers, businesses can access data and analytics tools that aren't available in-house while reducing resource expenditure.

What is Data as a Service (DaaS)?

Data as a Service (DaaS) is a model of providing digital data on demand to users as a subscription service. DaaS providers collect, manage, and deliver data to their clients, along with support on how to deal with the acquired data. The clients can access and use the data maintenance-free.

How does Data as a Service work?

DaaS is enabled by and closely associated with Infrastructure as a Service (IaaS) and Software as a Service (SaaS). Cloud computing – SaaS, DaaS, IaaS, and other digital services (aaS) – enables users to gather or receive ready-to-use data without investing in expensive hardware or software infrastructure.

DaaS providers offer a range of data services, including data storage, management, processing, analytics, and visualization. After subscribing to a paid service, customers get access to the data stream provided by the DaaS vendor. This way, big data is not physically stored in local storage, cutting the corresponding costs and making the business “lighter” and more flexible. Only the processed outcomes, the products of analyzed data, can then be stored locally, typically in a format of easy-to-read reports. Such actionable insights are ready to be applied in everyday business.

Benefits of Data as a Service

The key benefit of DaaS is that it allows organizations to focus on their core business while leaving data management, complex handling, and security issues to the experts. DaaS can provide access to high-quality data that might otherwise be difficult or too expensive to obtain.

DaaS cuts the demand for resources to run the company by lowering the usage of:

  • Finances

  • Software

  • Hardware

  • Personnel

  • Infrastructure

The challenges of using Data as a Service

While DaaS offers many benefits, there are some potential constraints to be aware of. The challenges of using DaaS could include the following:

  1. Data quality – the quality of data provided by DaaS platforms varies. It can be difficult to assess the accuracy and completeness of data. Users should carefully assess the data quality, sources, and ethical concerns before using it to make important decisions.

  2. Data security – storing sensitive data on third-party servers raises concerns about data security and privacy. DaaS providers must have robust security measures to protect their clients' data from cyber threats (data leaks) and ensure compliance with data privacy regulations. 

  3. Integration – integrating DaaS into existing systems can be tough, particularly when dealing with multiple data sources. Users may need to invest in additional tools or services to integrate DaaS with their existing systems. Alternatively, DaaS platforms with 24/7 technical support and hands-on guidance would be a wise choice if such concerns are to be addressed.

  4. Vendor lock-in – users who rely on DaaS providers may become locked into a specific vendor or platform, making it difficult to switch to another provider or integrate with other services.

  5. Cost – DaaS can be expensive, particularly for big data or specialized services. Some enterprise-level pricing plans could set off a hefty amount.

  6. Availability – DaaS may experience downtime or service disruptions, which can cut off access to data. DaaS providers should have backup and recovery procedures to minimize risks. When storing pivotal and time-sensitive data in a cloud, access to internet connectivity and electricity aren’t to be taken for granted.

Data as a Service use cases

DaaS is a catalyst for growth. The usage opportunities are vast – here are some of the common cases:

  • Business intelligence – DaaS provides customer, sales, financial, and other data for analysis to help make informed decisions.

  • Marketing – DaaS helps marketers to target and personalize marketing campaigns with access to demographic and behavior data to better understand their customers.

  • Risk management – DaaS provides real-time financial and market data access to identify and manage risks more effectively.

  • Fraud detection – DaaS grants real-time transaction and customer data to draw patterns of fraudulent activities.

  • Supply chain management – DaaS offers data on inventory levels and shipping schedules to optimize supply chain operations.

  • Healthcare – DaaS grants access to patient, clinical, and other medical data that can help healthcare providers improve patient satisfaction at reduced costs.

The list is endless. If certain big data has the potential to drive growth, it’s probably already being collected in large sets and offered as DaaS.

What is an example of Data as a Service?

Geographic data integration through an API is a common use of DaaS. Various apps benefit from maps for navigation and location showcase. DaaS provides developers access to its geographical data database, such as maps, satellite imagery, and traffic information, through a simple and well-documented API.

The service allows developers to integrate vendors' geographic data into their own applications, websites, or services without managing the data themselves. Most popular mapping APIs offer geocoding (converting addresses into geographic coordinates), routing (calculating the best path between two locations), and visualization (displaying maps and satellite imagery).

With a DaaS provider, developers can focus on creating their applications with enhanced functionality and better user experience while saving time and resources.

What is the difference between SaaS and DaaS?

The distinction between SaaS and DaaS, the two cloud computing-based service models, lies in the types of services provided as a subscription model:

  • DaaS provides access to data on demand

  • SaaS provides access to software applications

SaaS providers host and manage software applications and allow users to access them remotely through a web browser or an API. SaaS applications include a range of software products, such as customer relationship management (CRM), enterprise resource planning (ERP), and human resource management (HRM) systems.

On the other hand, DaaS providers collect, manage, and deliver raw data to their clients, who can access and use it for various purposes: data storage, management, processing, analytics, and visualization.

Why use Oxylabs Infrastructure as a Service?

Oxylabs is an IaaS platform that allows users to set up, customize, and scale data extraction processes maintenance-free using Oxylabs infrastructure with no hardware, software, or bandwidth limitations.

The difference from Daas is that with IaaS, users can collect tailored data hassle-free instead of using pre-arranged data sets. Users can easily integrate Oxylabs data extraction APIs into their projects and let us do the bulk of the processing.

Oxylabs Scraper APIs are AI-driven tools with a plethora of built-in features for general data extraction from any web page or specific targets, such as marketplaces, search engine results pages, and much more.

There is no need to develop and maintain a scraping infrastructure. Users can focus on the most important – the data – and leave all the technicalities to us. Make sure to try our scraping solutions for free with up to 5K results.

Final thoughts

With the rapid growth of cloud-based technologies, businesses increasingly embrace outsourced data services to improve their data management capabilities, gain insights into their operations, and make well-informed decisions to expedite growth.

DaaS is a great solution for companies that need to access big data quickly and efficiently. With DaaS, businesses can leverage a wide range of data sources to improve their decision-making processes.

DaaS is a transformative technology that has changed how businesses conduct daily operations. Companies considering the implementation of DaaS should carefully evaluate their needs and choose a vendor that can provide the right features, scalability, flexibility, security, and cost-effectiveness.

If you have questions about the topic or want to know more about our solutions, please contact us via the live chat on our homepage or email us at

Frequently asked questions

What does DaaS mean?

Data as a Service (DaaS) is a cloud and subscription-based data management and delivery model where service providers give data access to their clients.

What are the types of DaaS?

Data as a Service (DaaS) is designed to help organizations leverage their data more effectively by making it easier to access, integrate, analyze, and visualize. There are several types of DaaS, including:

  • Data Integration as a Service (DIaaS): integrating data from different sources into a single platform.

  • Data Warehousing as a Service (DWaaS): storing large amounts of data in a cloud-based warehouse.

  • Data Analytics as a Service (DAaaS): providing access to tools that can be used to perform data analysis.

  • Data Visualization as a Service (DVaaS): tools that can create visual representations of data, such as charts, graphs, and dashboards.

  • Data Quality as a Service (DQaaS): tools that ensure the data is accurate, complete, and consistent.

  • Master Data Management as a Service (MDMaaS): a centralized platform to manage master data, such as customer or product data.

About the author

Augustas Pelakauskas

Augustas Pelakauskas

Senior Copywriter

Augustas Pelakauskas is a Senior Copywriter at Oxylabs. Coming from an artistic background, he is deeply invested in various creative ventures - the most recent one being writing. After testing his abilities in the field of freelance journalism, he transitioned to tech content creation. When at ease, he enjoys sunny outdoors and active recreation. As it turns out, his bicycle is his fourth best friend.

All information on Oxylabs Blog is provided on an "as is" basis and for informational purposes only. We make no representation and disclaim all liability with respect to your use of any information contained on Oxylabs Blog or any third-party websites that may be linked therein. Before engaging in scraping activities of any kind you should consult your legal advisors and carefully read the particular website's terms of service or receive a scraping license.

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