A quick note about this blog.  Each article contains an intro image that's loosely related to the article's topic.  Mostly the photo's purpose is to provide a brief respite from the abstractions of the digital world.


 

 
 

Public Cloud Economics: Lessons for Enterprise IT (Part 2)

In Part 1, I illustrated how public clouds capture Moore’s Law and convert that into price decreases for customers.  In Part 2, let’s review how enterprise IT shops can capture Moore’s Law.

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Public Cloud Economics: Lessons for Enterprise IT (Part 1)

The basic economics of public cloud infrastructure services, like Amazon Web Services (AWS) or Google Cloud Platform (GCP), largely rests with effective capture of Moore’s Law, combined with efficient capacity management and sales growth.  Scale plays a role in cloud economics, but not in the manner often trumpeted in the marketplace.  In the case of infrastructure or platform services, capturing Moore’s Law is the actual coin of the realm, and Google essentially suggests as much in this NY Times article.  Here's an overview of how it works, the enormous amount of value it can create, and some lessons for enterprise IT shops.

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