The Technology Services Industry Association (TSIA), one of the tech industry’s largest trade associations, announced a new book based on its work with over 100 leading companies that are moving into new cloud and managed services. Titled Consumption Economics: The New Rules of Tech, authors J.B. Wood, CEO, TSIA; Todd Hewlin, managing director, TCG Advisors; and Thomas Lah, executive director, TSIA, assert that the true disruption of these big trends won’t be felt in a tech company’s product line — the true threat is to their business model.
As Consumption Economics reveals, future tech company revenue will come less from big pay-up-front contracts or long-term maintenance lock-in, and more from high volumes of low-priced transactions that are paid as the customer consumes the product capabilities. If customers fail to consume successfully and in high volumes, the tech company won’t just have satisfaction problems; they will miss their financial targets. How executives react to these new realities could either accelerate the commoditization of their products or lead to a new stage of competitive differentiation and profitable growth.
The book offers a new operating model for tech companies to profitably grow in the next big wave. For the first time ever, the tools are on the table for tech companies to play an active, real-time role in helping their customers realize business value and thus drive volume.
“We work with tech companies around the world and see patterns in their approach to the cloud and managed services. Some are patterns of success; others are patterns of failure,” said J.B. Wood, CEO of TSIA and co-author of Consumption Economics. “Making the right moves will determine which current market leaders retain and grow their positions in the cloud and which hold on too long to their current operating models. The latter will lose out to progressive competitors who adapt more quickly, and to aggressive start-ups who aren’t shackled by capital market expectations or entrenched bureaucracies.”
Consumption Economics will be released October 24; however, an abridged version is available now at www.tsia.com . Attendees at TSIA’s Technology Services World (TSW) Las Vegas conference October 24-26 will receive a complimentary copy of the book.
