Posts Tagged ‘Economics’

 

The Actual Truth About the Economics of Cloud Computing

Thursday, May 26th, 2011 by

Don’t let the media fool you. Which of these actually make cloud computing financially compelling?

  1. Super cheap power, such as hydro-electric
  2. Shipping container datacenters
  3. Massive datacenters
  4. Blade servers
  5. Datacenters with super-efficient cooling
  6. VMware virtualization licenses
  7. Pay-as-you-go pricing
  8. Automation
  9. Shared platforms
  10. Commodity hardware

The answer is NOT “all of the above”! If you said “pay-as-you-go pricing, automation, shared platforms, and commodity hardware” then you win. In fact, these four concepts are so powerful that I believe that they will shrink the entire IT economy. IT shrinking? How could that be possible? Yes, I think that the $3.3 trillion dollar global IT economy could be cut in half. When I’ve made this declaration before I’ve been likened to the commissioner of the US Patent Office who was rumored to have said:

“Everything that can be invented has been invented.”

Charles H. Duell, Commissioner, U.S. patent office, 1899 (attributed)

In truth he didn’t say this. http://en.wikipedia.org/wiki/Charles_H._Duell

But I’m still saying that I think we’re currently seeing the peak of complexity and cost in IT. IT is going to get easier and less expensive from this point forward. There. You have it in writing. (more…) «The Actual Truth About the Economics of Cloud Computing»