Just as cloud set us on the path to on-demand, as-a-service computing, there’s a movement afoot to deliver application services in a similar fashion, priced not only by consumption but also by value. Companies are cutting costs and increasing business value by shifting from time and materials to these more flexible as-a-service models.

What’s more important? The small-bore capacity and availability metrics of a specific manufacturing and distribution application? Or understanding how that application translates into more efficient order processing, faster shipments, and happier customers? The latter— higher-level focus—is the true benefit of an outcomes-based approach to service management.