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Cloud Surfing: A New Way to Think About Risk, Innovation, Scale, and Success by Tom Koulopoulos

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7

Commerce in the Cloud image

Every act of creation is first an act of destruction.

—Pablo Picasso

The potential upside value of a cloud-based business is much higher than that of a traditional business, which needs to invest heavily in infrastructure, people, marketing, and distribution before shipping out a single product. The reason is that a cloud-based business can ramp up all of its resources in real time as demand increases. This means that you are investing only if the business succeeds. What is also interesting about this economic model is that since the cloud encourages greater experimentation it also results in a larger number of failures ...

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