Tech Giant Amazon recently announced that it will pay writers only for the pages that are actually read rather that for the purchase of an entire book. This is probably the biggest change that the world of publishing has ever seen, right after the invention of the printing press maybe, that fundamentally changes how books are consumed. This exactly is the Consumption Cloud Economy!
The concept of offering services and solutions in a way where they are consumed to the best of capabilities, where end users pay only for what they use and where vendors and suppliers are paid only for what is actually consumed is the fundamental concept behind the Consumption Cloud. In other words you are now part of a system where as a consumer you can think about Paying ONLY for what you use. That’s fantastic. This helps end users save more than just a few bucks. Expanded to a multitude of services that can be offered in this form, you are now considering IT, Solutions, Services and what not. I spoke about this concept at the recent Cloud Expo in New York where I gave examples of car tires and shoes.
The consumption economy has some key aspects to it that need to be locked down before you end up rolling out your solutions and services on the model.