Digital Directions: A Clear Forecast 
About the Cloud

Subscription-based-services delivery also will be most effective when deployed on cloud-based services, as publishers will be able to deploy subscription services more rapidly, with less financial risk.

Another factor supporting the migration to cloud-based services is the speed at which technology is changing. The technology cycle often is shorter than the amortization period required to pay off a capital investment. In other words, big software acquisitions may be obsolete or replaced by a much lower cost alternative before the capital investment is paid off. The result is a high chance of a negative return on investment (ROI).

The alternative is to have a cloud services provider take the economic risk, and for publishers to use cloud capabilities as a service—to pay as you go.

These economic factors make a cloud strategy an absolute requirement and may be the difference between profit and loss for digital media programs. BB

Andrew Brenneman is founder of Finitiv, a consulting and services organization that develops and executes transformative digital strategy for publishers and other content organizations.