Evolution or Transforming? Transforming Business Economics

New business practices are developing daily. Today, how is cloud transforming economics of IT.


How is the cloud transforming business economics?


Cost of ownership. Remember when buying infrastructure, software, almost anything in IT, also carried with it a stream of continual costs? Cost to support, cost to maintain, cost to re-license, etc. The initial acquisition was only the tip of the iceberg. With cloud, think of a car rental. Pick what I want to drive, for the duration, and I pay for what I use. No more tires, oil changes, car washes, engine repair and on and on … Want Office and Email? How about $20 per month?


Cost to administer. The care and feeding of IT has also been a sore spot for many traditionally. Adding or deleting users, updating software, installing on system, deleting off systems … all a headache. Cloud IT is built from the ground-up to be consumable. It has to be or it fails. Think of it as a technology smoothie. Want to manage all your users across the US for hosted PBX? Here is your browser. Can you click checkboxes?


Consumptive cost model. The beauty of cloud. Variable, consumptive costs. I pay for what I use. No upgrade costs. No licenses to track. Per user, per month. Predictable. Scalable up or down. Bueno.


So, how do you apply these cloud economics to business? Stay tuned …


[This series will be focusing on the question of, “Is cloud technology revolutionizing or transforming?”]