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2.1.4. No investment risk

Especially for small companies the fact that no own IT  resources have to be bought is a huge strength. Business models can be tested  and quickly enter and exit the market. The IT resources can just be cancelled  and do not have to be sold if the concept fails.
Also there is no long-term capital tie-up because the  needed service and hardware are rented as needed. The client pays operating  expenses rather than capital expenses. This is an advantage because the  business is more flexible and they can measure profit on business outcomes, not  only costs (Georgescu, 2013).