This link has been bookmarked by 38 people . It was first bookmarked on 09 Sep 2008, by Krishnan Subramanian.
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The ability to rapidly de-provision capacity means that companies don’t need to pay good money for non-productive assets. Forecasting is often wrong, especially for black swans, so the ability to react instantaneously means higher revenues, and lower costs.
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The ability to rapidly de-provision capacity means that companies don’t need to pay good money for non-productive assets. Forecasting is often wrong, especially for black swans, so the ability to react instantaneously means higher revenues, and lower costs.
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Aggregating demand from multiple customers tends to smooth out variation. Specifically, the “coefficient of variation” of a sum of random variables is always less than or equal to that of any of the individual variables. Therefore, clouds get higher utilization, enabling better economics.
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Aggregating demand from multiple customers tends to smooth out variation. Specifically, the “coefficient of variation” of a sum of random variables is always less than or equal to that of any of the individual variables. Therefore, clouds get higher utilization, enabling better economics.
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While large enterprises benefit from economies of scale, larger cloud service providers can benefit from even greater economies of scale, such as volume purchasing, network bandwidth, operations, administration and maintenance tooling.
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While large enterprises benefit from economies of scale, larger cloud service providers can benefit from even greater economies of scale, such as volume purchasing, network bandwidth, operations, administration and maintenance tooling.
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While theoretically, any company can site data centers in globally optimal locations that are located on a core network backbone with cheap access to power, cooling and acreage, few do.
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10 Jul 09
Mark MastersonBrilliant. I've been struggling to articulate several of these points, like 4 and 9, but not as cleanly as this. Must read.
cloudcomputing architecture cloudonomics economy saas scalability business economics infrastructure hosting strategy it
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Public utility cloud services differ from traditional data center environments — and private enterprise clouds — in three fundamental ways. First, they provide true on-demand services, by multiplexing demand from numerous enterprises into a common pool of dynamically allocated resources. Second, large cloud providers operate at a scale much greater than even the largest private enterprises. Third, while enterprise data centers are naturally driven to reduce cost via consolidation and concentration, clouds — whether content, application or infrastructure — benefit from dispersion.
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David Feld"If your enterprise has access to the same things — virtualization, automation, performance management, ITIL, skilled IT resources, etc. — as cloud service providers, would clouds provide any real and sustainable benefit?"
it cloudcomputing technology computers business economics cloudonomics gigaom
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08 Sep 08
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Brent SordylThe reliability of a system with n redundant components, each with reliability r, is 1-(1-r)n. So if the reliability of a single data center is 99 percent, two data centers provide four nines (99.99 percent) and three data centers provide six nines (99.99
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