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Consumption Economics: The New Rules Of Tech
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If you’re a tech company, the most dramatic effect of megatrends like cloud computing, managed services, and the rise of consumer technology won’t be felt in your company’s product line. The true disruption will be to your business model. Future customers won’t want to pay you high prices out of big “CapEx” budgets anymore. They will expect lower “cloud” prices paid from “OpEx” budgets only when and if they successfully consume the business value of your products.How your company reacts to this risk shift could either accelerate the commoditization of your products or lead you to a new stage of profitable growth. For the first time, the tools are on the table to truly eliminate barriers of cost and complexity created by the last generation of tech. Consumption Economics is the owner’s manual for tech company executives who want to drive their company successfully into the next one.

Hardcover: 232 pages

Publisher: Point B, Inc. (November 1, 2011)

Language: English

ISBN-10: 0984213031

ISBN-13: 978-0984213030

Product Dimensions: 6.4 x 0.8 x 9.2 inches

Shipping Weight: 1.2 pounds (View shipping rates and policies)

Average Customer Review: 4.4 out of 5 stars  See all reviews (76 customer reviews)

Best Sellers Rank: #121,546 in Books (See Top 100 in Books) #124 in Books > Business & Money > Industries > Computers & Technology #329 in Books > Computers & Technology > Programming > Software Design, Testing & Engineering > Software Development #755 in Books > Computers & Technology > Business Technology

As part of the research for my next book “Building Successful Partner Channels” I came across the book “Consumption Economics.” Although the book is not a literary masterpiece (is far too long with far too many repetitions and with illustrations that are confusing rather than illustrative (and unreadable in the Kindle version)) it is still worthwhile reading for its’ thorough analysis of the impact of the “________ as as service” format on an industry that have been dominated by the capital investment format. The software industry that has been blessed by the “pay first - consume later” principle is now transforming to a “pay as you consume” format and the “Consumption Economics” book is worth reading if you are affected by these changes.The transformation is driven by numerous interests and factors such as fast and inexpensive access to the Internet, the customers’ appreciation of the “pay as we consume” format, the end-users’ option of circumnavigating the CIO and his IT department for new applications, the opportunity of insurgents to disrupt established markets (salesforce.com, Netsuite, Workday, Basecamp, Atlassian, Zendesk, Dropbox, Skype etc.), the reduction in complexity for the user and the enormous economy of scale benefits of using large data centres. With so many drivers and benefits the challenges associated with integration, customisation, privacy, security, availability, survivability and performance will be solved enabling the “________ as as service” format to also deep-penetrate the enterprise markets. Wood, Hewlin & Lah predicts that the transformation will take place in most segments of the market within the next 5-10 years leaving only very small pockets resistant to the consumption format.

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