Business models that require expenditures that are considered 'high capex' in the customers eyes are very difficult to make successful and profitable.
Hence 'on-prem' solutions are a hard sell because require customers to pay large sums of money upfront in order to use the 'asset' in perpetuity. It is a 'high capex' model.
Enter the concept of 'anything as a service' - AAAS aka 'cloud'. SAAS, PAAS, IAAS - - it's all the same in terms of contracting and business models.
Pay as you go model. You pay for what you use monthly, quarterly or annually.
Procurement of tech is no longer 'capex'.
It is now an 'opex' model - which is much more attractive to customers.
Business models that require expenditures that are considered...
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