How To Do Business With The Cloud

The Cloud is going to be a different business model. We already know the technology is different and this post is not about that.

Fixed price models probably fit the Cloud better than T&M basis from a vendor/ISP's perspective. Why ?

Simply because Cloud based applications cannot offer much customizations. In other words the offerings are pretty static and well known. The only dark horse will be integrations. But there is a even more powerful reason why fixed price bids will be more appealing to vendors and buyers : IT-Fatigue.

IT and IT projects have reached the curve point where end users and buyers are tired of the gap between software technology and their own expectations. So its safer to purchase in incremental sizes and hence fixed price models with absolutely guaranteed functionality have begun to make sense. And thats how Cloud models have to be.