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Mr. Andrew Baer, Mr. Kwangwon Lee, and James Tebrake

services; and a computer processing firm that provides cloud computing services such as processing services and storage services. In the traditional model, where firms internally provision their IT services, the accounting firm and wholesaler would purchase servers from the IT equipment manufacturer/wholesaler, hire staff to maintain their servers and use this capital and labor to supply IT services to the rest of the firm. Table 1 presents a stylized production and generation of income account under this traditional model. Table 1. Traditional Model