Special Reports

Bend more without breaking: The cloud business model challenge

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From the advent of the IT market’s boom in the mid-1980s, it was a seller’s market. The automation of manual business processes provided compelling proof points that IT investments would provide positive benefits, regardless of the specific vendor, solution, price or agreement. While some competition always existed, most providers in the traditional IT space sold bigger deals than customers needed and with more vendor-biased contract terms. Deals were made at higher prices and lacked the elements needed to enable the full business value of what vendors were selling. The phrase “buyer beware” fit well, as customers were forced to ensure their investment would yield the expected results, because a vendor’s success was mostly assured once the initial deal was signed.

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