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Consumption Economics

JB Wood: Complexity Avalanche

J.B. Wood

President and CEO, TSIA

Todd Hewlin

Managing Director, TCG Advisors

Thomas Lah

Executive Director, TSIA


If you're a tech company, the most dramatic effect of megatrends like cloud computing, managed services, and the rise of consumer technology won't be felt in your company's product line. The true disruption will be to your business model. Future customers won't want to pay you high prices out of big CapEx budgets anymore. They will expect lower cloud prices paid from OpEx budgets only when and if they successfully consume the business value of your products. How your company reacts to this risk shift could either accelerate the commoditization of your products or lead you to a new stage of profitable growth. For the first time, the tools are on the table to truly eliminate barriers of cost and complexity created by the last generation of tech. Consumption Economics is the owner's manual for tech company executives who want to drive their company successfully into the next one.

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Critical Praise for Consumption Economics

“The focus of Consumption Economics has huge implications for vendors, IT organizations inside the enterprise, and for the business itself in terms of leveraging IT, be that for differentiation, expansion or productivity.”


Geoffrey Moore
Author of Crossing the Chasm, Inside the Tornado,
Dealing with Darwin, and Escape Velocity


"The next wave of tech will be about truly energizing businesses of all sizes. Tech companies must work actively with IT departments to reduce capital and operating expenses and directly with business users to improve the agility of their organizations. Consumption Economics is the thinking person's guide on how to do just that."


Tod Nielsen
Co-President, VMware


"Tech companies take heed. While many see cloud computing as a new, incremental opportunity, Consumption Economics argues that the migration to the cloud could also drive commoditization, undermine captive relationships and pressure margins. Winners and losers will be shaped by organizational decisions made over the next two to four years, and Consumption Economics provides a step-by-step guidebook for driving the requisite organizational transformation. A must read for all technology executives."


A.M. (Toni) Sacconaghi, Jr.
Senior Research Analyst, Sanford C. Bernstein & Co.


"Cloud computing is fundamentally redefining how customers buy and adopt technology. Consumption Economics delivers powerful insights on the steps high tech companies must take to capitalize on this major market transition."


Bob Paul
Chief Executive Officer, Compuware


"Consumption Economics is a must read that calls out the powerful movement and tectonic shift that is transforming how all technology-based solutions will be sold."


Mike Smerklo
Chairman and CEO, ServiceSource