The use of XaaS may also entail disadvantages, particularly in security and data protection. Data is transferred to third-party companies for the use of XaaS solutions, which can affect the security of this data. Depending on where the third-party service provider is based, they may not be subject to the same data protection laws as your company. This makes it necessary to closely examine the service providers in question. The likelihood of being hacked also increases when working with additional companies, as the sensitive data is then processed by several companies rather than just one.
Another disadvantage of using XaaS solutions is the risk of downtime of the respective service. In such cases, the clientele must rely on the anything as a service company and cannot work on fixing the problem themselves.
Users of XaaS services could also incur hidden costs. To avoid this, it is important to check the contracts concluded with XaaS companies for such cost traps.