Editor’s note: Investor and entrepreneur Bill Bing sees the economy shifting from “the idea of asset ownership to a virtual, on-demand model” as he writes in a blog post at ExitEvent.
DURHAM, N.C. - Over the last ~20 years, we have seen a huge wave of innovation that has transitioned just about everything from analog to digital. Music, newspapers, furniture, pets, relationships, businesses and more now exist in digital format, and are marketed and sold online. I believe the majority of this shift has already occurred and we are currently in the midst of the next macro phase—a transition from the idea of asset ownership to a virtual, on-demand model.
Why buy extra servers when you may only need them for a few hours a week?
Why buy albums, or even individual songs, when you can subscribe to a service that provides every song ever recorded?
With an on-demand model of goods, having access to a car is a realistic and more affordable alternative to actually owning one. Just as analog to digital before it, virtualization is being applied to many markets, radically impacting business fundamentals and pricing by reducing costs.
Need a place to stay? Airbnb can connect you with a virtual inventory of locations without having to bear the cost of property ownership or management.
Need a ride? Uber will send a car from its virtual fleet to pick you up and take you where you need to go.
The entire post can be read online.
