Going Non-Linear

Whilst there are great opportunities for established ISVs to enter the cloud, the biggest potential by far is for non-tech firms and new ventures to monetise know-how as highly-scalable revenue streams from new cloud apps. This is the monetising of know-how that extends beyond the limits of people time and local geographies.

Beyond Billable People Time

Knowledge-intensive firms typically generate revenues and profits from billable people time. This is Linear Revenues: to increase the top-line, the cost-line goes up in a straightline, resulting in an increase in risks, with all that goes with 'managing a bench'. By converting know-how into cloud apps, knowledge-intensive firms can monetise Non-Linear Revenues, where scaling sales does not result in a corresponding straightline increase in costs and people resourcing.