Financing a Services Business: The Valley of Death

It is a late afternoon ritual for me to read the Meritage Minute, a daily briefing on key news events published by my colleague Heidi Longaberger. If you would like to receive The Minute, email Heidi at: hlongaberger@meritagefunds.com. Yesterday’s briefing included an AlwaysOn piece titled “In Ten Years Will All Apps Be in the Cloud?” I’m not here to debate the merit of the piece; “all” is a strong word despite the fact that directionally, movement toward the cloud is inevitable. The article lists a series of challenges of moving into the cloud, most of which are the same FUD often touted by those that don’t quite understand.

Financing a Services Business: The Valley of Death

The future is in services

Last week, I attended GigaOm’s Structure ’09 Conference: Put Cloud Computing to Work. It was worthwhile to attend and I intend to return next year. It was exciting to see how the services business model is being rapidly adopted by the technology-delivery value-chain.

In a talk titled The Cloud in Context, Russ Daniels, VP and CTO of Cloud Services Strategy at HP put it most succinctly, describing HP’s vision as:
“Everything is a Service”.
Full video of Daniels’ talk here. While the “everything is a service” mantra is almost certainly overreaching, it drives home an undeniable point; the action is in services. To make it fully, I think you have to start with the view from the customer’s perspective.

The future is in services