Read e-book online Consumption Economics: The New Rules of Tech PDF

By J.B. Wood

ISBN-10: 0984213031

ISBN-13: 9780984213030

If you’re a tech corporation, the main dramatic impression of megatrends like cloud computing, controlled providers, and the increase of purchaser know-how won’t be felt on your company’s product line. the genuine disruption may be in your company version. destiny consumers won’t are looking to pay you excessive costs out of huge “CapEx” budgets anymore. they'll count on reduce “cloud” costs paid from “OpEx” budgets purely whilst and in the event that they effectively eat the enterprise worth of your products.How your organization reacts to this possibility shift might both speed up the commoditization of your items or lead you to a brand new level of ecocnomic development. For the 1st time, the instruments are at the desk to really do away with limitations of rate and complexity created via the final new release of tech. intake Economics is the owner’s guide for tech corporation executives who are looking to force their corporation effectively into the following one.

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Extra resources for Consumption Economics: The New Rules of Tech

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You can thank Steve Jobs for that. This does not mean that complexity goes away; it means that the new “cool” won’t be showing the customer all the inherent complexity, much less turning responsibility for it over to them. It will be showing the customer that your mastery of it has resulted in something truly impressive: simplicity. Like other aspects of the shift, this was waiting in the wings for years and is an expected dimension of the industry’s maturation. Electrical power was also a marvel of complexity in its early days.

There is no big fat circle called the product sale. 2. Even though your sales reps will push hard to get as many minimums, guarantees, and commitments as they can from the customer, at the end of the day, most all the revenue will be in the future. What are all those little dots? They are billable transactions—new users, added features, content downloads, more modules, extra computing capacity, more storage, more, more, more. And, if consumed by a user, you earn the right to bill for them. That is good.

And while no one knows the exact figure, billions of dollars in failed IT projects can also be laid at complexity’s doorstep. So while this is hardly new news, the combination of the tough economy and the promise of the cloud have accelerated this trend markedly. One major benefit embraced by cloud providers is marked reductions in entire layers of complexity. It is a well-timed offer, given the economic pressures on the CIO to reduce IT management costs and increase business results. The cost reduction aspect has many dimensions.

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Consumption Economics: The New Rules of Tech by J.B. Wood


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