Over at ZDNet, Phil Wainewright writes that Cloud providers should focus on what customers want: software in combination with other non-software components that add up to a useful outcome.
Instead of thinking about software when designing a service, cloud providers would do better to think first about the business outcomes they aim to deliver. The cloud allows you to rethink entire business processes rather than simply replicating traditional technologies as SaaS. True innovators see software as just one part of the means to the end.
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