“Consumption Economics: The New Rules of Tech”
UncategorizedIn their highly engaging and thought-provoking book, authors J.B. Wood, Todd Hewlin, and Thomas Lah make the case that information technology (IT) is migrating from a capital intensive model, where companies buy and maintain huge, complicated, and expensive data center, to a “utility”, where IT is delivered like electricity, and companies only pay for what they consume.
It is a compelling model for IT customers, and terrifying for IT vendors. The authors lay out “Three Big Things” that enabled the “new rules of tech” to come about; “Four New Thoughts” about IT (including that there is such a thing as “good enough” IT); and “Seven Big Shifts” that are happening.
If you are in the IT business – either as a vendor or a customer – this book is a very interesting read.
P.S. I have developed a module around this book for my Competitive Strategies course at Duke, and have also given talks on the topic to IT companies, all to very positive reviews.
[…] the model described in “Consumption Economics” (see earlier post) — cloud provider Box is moving from a straight monthly access fee to one based on actual […]