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Story: Utility computing still a hard sell

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One of the fundamental problems is that firms are still focused on pricing consumption and rather than establishing pricing models that are tied to the full business value that customers get from utility computing solutions. For example in the world of financial services, fees are often paid on the basis of assets under management. why is this a good model? Because, a higher asset base represents the opportunity to generate greater total business value and thus there is a direct connection between the price and the value. Customers can also easily figure what their costs are going to be under different scenarios and see that cost changes are directly tied to changes in the value of the solution. If utility computing solutions providers can adopt this perspective then the concept will take off.

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