07 . Jun . 2023
Summary: The market for Space-as-a-service and coworking spaces will grow exponentially as these spaces offer flexibility, the ability to work efficiently, and practice creativity without spending too much.
Space-as-a-Service (SPaaS) is a concept known across different industry niches, like real estate, technology, and architecture. The goal is to ensure proper commercial space utilization, sustainability, and adaptability. You are renting out the space, and the amenities, thus providing a comprehensive experience. The most popular form of this business model is coworking spaces. Various businesses can share a office space, and utilize it accordingly. It is not only about sharing the area, but other amenities as well. This is to the more popular IT infrastructure model Software-as-a-Service or SaaS. It grew in popularity after the pandemic and has expanded its consumer base ever since. Companies with limited resources choose this option instead of traditional workspaces for various reasons. In this blog, we will see what market drivers are influencing the growth of this model.
Earlier, people used to purchase or rent traditional offices for their entrepreneurial ventures. These spaces are quite costly and not the best option for solopreneurs and small business owners. In addition to that, they would have to purchase furniture, equipment, and other tools. The space isn’t easily scalable even if they rent these buildings. So when they expand their business, they will be forced to relocate elsewhere, and the cycle repeats again.
In this context, a shared office space can be quite beneficial because it is cost-effective. These spaces include meeting rooms, cubicles, a reception area, a cafeteria, and other amenities. Business owners don’t have to use all these facilities at once, but they can. This method properly utilizes space, so there is no need to worry about additional costs. It can be scaled up or down according to a business’s requirements.
Technology has changed the way employees work; most use laptops or mobile phones instead of desktops. High-speed internet is crucial to delivering the tasks fast without any interruptions. Also, the extensive use of IoT-enabled devices, artificial intelligence, and cloud computing has quickly set the pace of today’s working environment. It has been possible for people to work from anywhere with advanced arrangements.
Residential internet connections are subject to more outages and a slower response time with no strict service level agreement. Should an outage of your home’s internet service happen, it could be days before the problem is resolved, leading you to find somewhere else with internet connectivity to get your work done and communications up.
The ISP prioritizes connection uptime from an office with a commercial internet provider. Coworking facilities typically have their own internal IT team, even if there are disruptions. So what do people get from all these services? A seamless and engaging user experience.
People do not want to stay confined to the boundaries of traditional work setups and instead choose a flexible office space. They want to work and perform other duties without any interference. They want to perform tasks pertaining to their professional and personal life at the same time. The best thing is that these places allow people to work from anywhere, anytime. A modern coworking space offers agility and opportunities for startups to increase their visibility and exposure. Business owners can work with other skilled professionals, ask for their expertise, and use those opportunities accordingly.
As different businesses will be working together, it fosters a learning environment. When people learn new skills, they will be satisfied. It can offer networking facilities as you will find people of varying calibers, exposing you to multiple opportunities. Also, they will use those skills to drive their productivity, thus driving the overall employee productivity of the organization.
This flexibility and advanced technologies can motivate people to work harder. Nowadays, people want to balance work and professional life, and these spaces can be helpful. People can eat healthy food at the cafeteria and play games to relieve stress. This holistic approach will lead to employee satisfaction and work efficiency.
You can do that now if you are a solopreneur and want to own a posh, furnished office space, And without spending a huge amount. And without spending a huge amount.
The main challenge of the SPaaS model is the lack of privacy among many occupants. Despite being flexible, there’s always scope for improving the space. You might find the conference room occupied, or the cafeteria filled with people. Also, there can be unwanted interruptions and exposure to sensitive business information.
Another challenge of this model is the need for more awareness in the market. So that this concept becomes familiar across all cities or nations. However, these challenges can be easily overcome upon further expansion.
Flexible office spaces are the rage among small business owners because this concept disrupts the traditional scene. Traditional office spaces are quite limited and cannot be scaled up and down according to business needs. But coworking operators offer that advantage, helping small businesses to work without worrying about problems. These areas are all-inclusive facilities, allowing people to work productively. As the number of startups grows, the market for SPaaS will also increase.
Unlike traditional spaces, shared office spaces offer a short lease, making them a more popular option among solopreneurs and startups. These people (and freelancers) comprise 90% of the market audience, but nowadays, corporate offices are also choosing this option. Some employees may consider this option for remote and women employees who might have problems commuting to the office. These companies want to support the mentality of the post-pandemic workforce.
SPaaS has been a popular concept across North America, South America, Europe, and Africa. However, it is seen that the Asia-Pacific region has the most potential in the current scenario. The reason is the working population present in this area and the high number of business enterprises. With time, this number will grow due to increasing governmental support, along with market opportunities for SPaaS.
In the current context, the concept of a startup office space has been redefined, all thanks to SPaaS or Space-as-a-service. Here, more focus is given to space utilization and supporting flexible working models. Coworking spaces are the best example of this business model; many corporate organizations are considering this option. Why? Because they come with high-speed internet connectivity, amenities like conference and meeting rooms, a cafeteria, and many other facilities. These places enable people to practice working flexibility and maintain work-life balance. Due to that, companies have seen a remarkable increase in employee productivity and motivation.
Compared to traditional offices, coworking spaces are cost-efficient, as you don’t have to invest in setting up an office or rent a high-price office building. The lease amount and duration for these working places are flexible, which drives small and medium businesses to choose this option. As the scope of working has changed with the introduction of remote and hybrid working, many large enterprises are also considering it.
With Zioks, you can make the most of our tech-enabled coworking space in Kolkata based on subscription as per your convenience. Our diverse suite of workspaces can fit right into your work-life preferences, and you will find everything you need to set up and work from a fully-functional business address. The plus point? Seamless customer experience and on-site tech support to cover all your connectivity needs while you focus on your work.