Yesterday’s blog post looked at MYOB’s journey into cloud computing, in some ways this is a good example of being careful what you wish for.
Like all box software suppliers, MYOB and Microsoft desperately wanted to move customers to a subscription model through the 1990s and early 2000s, the theory being a steady cashflow would be better than the ‘lumpy’ sales of box product every time a customer upgraded their system.
Eventually, the box software suppliers got their wish when cloud computing took off after many false starts.
Unfortunately for the box software suppliers,it turned out their products had to be completely redesigned to run as a cloud service.
Worse, the new business model also lowered the barriers for entry into their industries which meant the incumbents had to compete dozens of hungry new competitors who weren’t lumbered with legacy code and customers.
The box software companies got the subscription model they wished for, but turned out not to be the bonanza they hoped.
Wishing well image courtesy of Deboer through SXC.HU