In the IT industry, the growth of “cloud computing”
(accessing computer resources provided through
networks rather than running software or
storing data on a local computer) exemplifies this
shift. Consumer acceptance of Web-based cloud
services for everything from e-mail to video is of
course becoming universal, and companies are
following suit. Software as a service (SaaS), which
enables organizations to access services such as
customer relationship management, is growing
at a 17 percent annual rate. The biotechnology
company Genentech, for example, uses Google
Apps for e-mail and to create documents and
spreadsheets, bypassing capital investments in
servers and software licenses. This development
has created a wave of computing capabilities
delivered as a service, including infrastructure,
platform, applications, and content. And vendors
are competing, with innovation and new business
models, to match the needs of different customers.
Beyond the IT industry, many urban consumers
are drawn to the idea of buying transportation
services by the hour rather than purchasing autos.
City CarShare and ZipCar were first movers in
this market, but established car rental companies,
spurred by annual growth rates of 25 percent, are
also entering it. Similarly, jet engine manufacturers
have made physical assets a platform for delivering
units of thrust billed as a service.
A number of companies are employing technology
to market salable services from business
capabilities they first developed for their own
purposes. That’s a trend we previously described
as “unbundled production.” More deals are
unfolding as companies move to disaggregate
and make money from corporate value chains.
In the IT industry, the growth of “cloud computing”
(accessing computer resources provided through
networks rather than running software or
storing data on a local computer) exemplifies this
shift. Consumer acceptance of Web-based cloud
services for everything from e-mail to video is of
course becoming universal, and companies are
following suit. Software as a service (SaaS), which
enables organizations to access services such as
customer relationship management, is growing
at a 17 percent annual rate. The biotechnology
company Genentech, for example, uses Google
Apps for e-mail and to create documents and
spreadsheets, bypassing capital investments in
servers and software licenses. This development
has created a wave of computing capabilities
delivered as a service, including infrastructure,
platform, applications, and content. And vendors
are competing, with innovation and new business
models, to match the needs of different customers.
Beyond the IT industry, many urban consumers
are drawn to the idea of buying transportation
services by the hour rather than purchasing autos.
City CarShare and ZipCar were first movers in
this market, but established car rental companies,
spurred by annual growth rates of 25 percent, are
also entering it. Similarly, jet engine manufacturers
have made physical assets a platform for delivering
units of thrust billed as a service.
A number of companies are employing technology
to market salable services from business
capabilities they first developed for their own
purposes. That’s a trend we previously described
as “unbundled production.” More deals are
unfolding as companies move to disaggregate
and make money from corporate value chains.
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