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he long-term, margin-oriented economy

is coming to an end. Instead, it is being

replaced by flat-fee, shared, crowd-

based or on-demand service models that give

customers more agility, greater options and,

ultimately, better value for money. We are all

having to adapt to this new normal, and be-

come more flexible and agile than ever to react

quickly to constantly evolving requirements.

Players like Spotify, Netflix, car2go, AirBnB,

Amazon and Microsoft have already changed

the media, music, transportation and IT indus-

tries irrevocably. What all these companies have

in common is that they have embraced a new

selling model: they all now offer their products

on demand, as a service and bill their custom-

ers either only for what they use or they simply

charge them an incredibly low-cost flat fee. They

make profit by winning the long tail, reaching

the tipping point and spending money only on

resources while they use them.

Scalability and agility can only be achieved if

the tools and services businesses are using can

also adapt flexibly to their needs as well as those

of their customers. And this is where cloud com-

puting comes in. Cloud is just the first small step

in this huge digital transformation that started

a few years ago and is now developing rapidly.

Businesses of all sizes and types are adopting the

as-a-service paradigm, and soon we will all be

embracing it, because it fits better with the way

our society is heading and the way in which we

expect to use and pay for products and services.

The world as we know it is morphing into an

‘everything-as-a-service’ economy. Cloud-based

applications and infrastructures are becoming

the basic ingredients for creating the global, flex-

ible and scalable platforms that businesses world-

wide will come to rely on for everything they do.

We will use it to feed privately produced re-

newable energy into the grids, to orchestrate

distributed manufacturing using 3D printing,

to analyse massive amounts of data procured

from billions of sensors, and to support the

sharing and collaborative economy we are

heading towards. Software will become the life-

blood of everything we do.

I am deeply convinced that in just a few years,

every company and every individual will rely

on cloud-based services in the same way that

we have come to rely on electricity and the

internet today. Cloud computing will become

omnipresent to the point that we won’t even

notice it’s there.

Damianos Soumelidis is managing director at soft-

ware development and consulting firm Nagarro

The cloud

will disappear

Cloud computing is the backbone for on-demand service models, which

give customers more agility, flexibility and better value for money




“Cloud is just the first small

step in this huge digital

transformation that started a

few years ago”