Cloud service companies lock customers in while nickel-and-diming them

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It’s a company’s dream business model – the services are too difficult to switch, and small price increases are often overlooked

It’s a company’s dream business model – the services are too difficult to switch, and small price hikes are often overlookedThis price increase comes after another announced increase back in 2022 and this time actually ranges from 16% to 20% depending on the service. Why isdoing this? Because it can. Netflix is no dummy. It knows that almost all of its customers will stick with the service even though it’s costing a little more. And they’re right. I love Netflix, so I’m going to pay.

This is a business model unlike anything we’ve seen in the past and it’s awesome … for the software providers. But what about users? What about my small business? Because of the cloud, users get the most recent applications and software fixes in real time. They can easily access their information from anywhere and from just about any device. They can store their data with managed service providers who have more wherewithal and resources to secure and protect it. All of this is an improvement over having a server and a bunch of clunky Windows computers connected to it in your office that’s supported by some IT geek down the road.

 

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