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by Mark Harrison.
Original Post: Economics of the Cloud
Feed Title: Mark Harrison
Feed URL: http://markharrison.co.uk/blog/xml.aspx
Feed Description: .NET Portals, Collaboration and eBiz
Analysis uncovers economies of scale for cloud that are much greater than commonly thought. Large clouds could one day deliver computing power at up to 80% lower cost than small clouds. This is due to the combined effects of three factors:
- supply-side economies of scale which allow large clouds to purchase and operate infrastructure cheaper
- demand-side economies of scale which allow large clouds to run that infrastructure more efficiently by pooling users
- multi-tenancy which allows users to share an application, splitting the cost of managing it
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