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

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 prone, and the increase of patron expertise won’t be felt on your company’s product line. the genuine disruption may be on your enterprise version. destiny clients won’t are looking to pay you excessive costs out of massive “CapEx” budgets anymore. they'll anticipate decrease “cloud” costs paid from “OpEx” budgets merely whilst and in the event that they effectively eat the enterprise price of your products.How your organization reacts to this probability shift may both speed up the commoditization of your items or lead you to a brand new degree of ecocnomic development. For the 1st time, the instruments are at the desk to actually cast off obstacles of rate and complexity created via the final new release of tech. intake Economics is the owner’s handbook 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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3. The iPhone came out. Let’s start with the economy, because it threw gasoline on the fire of the other two. At TSIA we have a piece of nostalgia, we believe. It’s a copy of the McKinsey Quarterly from Q3 2008. That is exactly when the meltdown occurred. Exactly. Take a guess what amount of the editorial content in the Q3 2008 McKinsey Quarterly was devoted to the impending meltdown? Zero. AIG? Citicorp? The impending global meltdown of financial markets and credit? Zero. Every article was about the growing influence of China.

First and foremost, it is because the existence of huge, cloud-based infrastructure as a service (IaaS) providers are going to disintermediate a lot of core component providers from selling directly to end customers. If IT departments can buy secure storage over the Internet from industrial-strength, massive-scale, secure IaaS companies like IBM, Rackspace or Amazon, they won’t need to mess with 3Par, EMC, and Symantec. 6 Selling to Cloud Service Providers Why would customers deal with all that added complexity if they can simply contract with one cloud IaaS supplier?

Bezos does not fear plunging prices for storage and computing cycles; he wants to be the guy who leads it there! A second thing to keep in mind is that, even at these low prices, the simplicity of access means there is not much holding the customer to this supplier. If customers don’t like subscribing to computing power from Amazon, it is not much of a switch to move to another cloud-based computing and storage supplier. This low switching cost could take the threat of retail price wars and commoditization to tech sectors that have never experienced anything like it before.

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


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