DaaS

Data-as-a-Service (DaaS) is a cloud-based model that delivers data on demand over the internet. Instead of storing and managing data in-house, organizations access data from external providers who handle the storage, processing, and delivery. This model allows users to retrieve real-time or pre-processed data through APIs or dashboards without needing to manage the underlying infrastructure.
Also known as: On-demand data, cloud data delivery

Comparisons

• DaaS vs. SaaS (Software-as-a-Service): SaaS delivers software applications, while DaaS provides access to data sets and streams.
• DaaS vs. Traditional Data Warehousing: DaaS is scalable, faster to deploy, and doesn’t require on-premise hardware or maintenance.

Pros

• Scalable: Easily access large volumes of data without expanding infrastructure
• Cost-effective: Reduces overhead for data storage and management
• Real-time access: Many DaaS platforms provide up-to-date information streams

Cons

• Data privacy concerns: Sensitive data handled by third parties can pose security risks

• Vendor dependency: Reliance on providers for data quality, availability, and uptime

• Integration complexity: May require custom pipelines to connect with internal systems

Example

A fintech company uses a DaaS provider to access real-time market and trading data via API. This allows developers to build investment tools and dashboards without managing financial databases internally.