Consumption Economics: The New Rules of Tech

Purpose - This viewpoint aims to review the book Consumption Economics: The New Rules of Tech, by J.B. Wood, a volume supported by the technology service industry. Design/methodology/approach - The paper provides an overview of the book, key messages and implications for the future. Findings - The shift to the cloud will change the needs for enterprises to purchase and maintain expensive hardware/software changing the business model for companies that sell and service these systems. The book fails, though, to explore how the shift by their client, the users of these systems, will impact their relationship with their clients. Education is a good example. Practical implications - Front end capital costs will be amortized over the long term by the ability of former owners to pay incrementally, micro transactions, MT, which may yield similar revenues but shift the burden of capital onto the providers/service companies affecting revenues, commissions, fees and working relationships. Originality/value - Business models will change, new partnerships and uses of information will emerge and knowledge will more easily flow across geo/political and enterprise boundaries.