“Consumption Economics: The New Rules of Tech”

March 16, 2014 by Uncategorized

In 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.

Consumption Economics book cover

 

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.

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