The Economics of Cloud Computing (Grid)

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. These three key differences in turn enable the sustainable strategic competitive advantage of clouds through what I’ll call the 10 Laws of Cloudonomics. Click here to read full article.