Announcing a New Age of Consumption Economics
A shift is beginning. In the growing worlds of cloud and managed services, the pattern of purchasing technology is changing. Risk is moving from the customer to the tech company. Find out everything you need to know about this new business model in the just-released book Consumption Economics, co-authored by Todd Hewlin from TCG Advisors and JB Wood and Thomas Lah from TSIA. Click the button below to get your copy and join the discussion on twitter by following @ToddHewlin and @NewRulesOfTech.
Synopsis
The true impact of the cloud and the consumerization of enterprise IT won't be about technology. It's their disruptive effect on existing business models that will cause the real upheaval to the industry status quo. These innovations could either cause commoditization or they could prevent it. On the one hand, they could trigger a rapid draining of the profit pool for big tech companies, accelerating product sameness and lowering prices. On the other hand, they might represent the best chance these companies have ever had for creating real value for customers, including many they could never reach before.
The new playing field for tech will be consumption. Future customers—even large corporate ones—won't pay up front. They will pay when, if, and based on how much they actually use. This shifting of investment risk from the customer to the tech company will change the game. The winners in this "new normal" will organize from the ground up to optimize end-user consumption of value. That's how start-ups and progressive incumbents will capture profitable growth, gain market share, and garner high valuations from capital markets. What's left will be a trail of former big-name tech brands that hung on too long to their old models that favor expensive complexity and leave consumption outcomes up to the customer.
Consumption Economics helps winning tech companies to reimagine how they could build, price, and sell products in the age of the cloud. It is certain to change everyone's notion of what serving a customer means. Even IT departments will reconsider their role in the value chain as employees start working directly with tech companies and take personal productivity into their own hands.
Together, these new forces become a vehicle for eliminating the barriers of cost and complexity stood up by the last generation of tech. Consumption Economics is the owner's manual for executives who want to drive their companies successfully into the next one.
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