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Cloud Computing Economics

5 September 2011 No Comment

After exploring the economic model that makes cloud computing so attractive, this video illustrates the economic consequences of shifting operations of IT services to the cloud from a user and a provider perspective.

One of the primary principles behind why the cloud computing model is disruptive in its economic potential is due to the economies of scale involved. The combination of massive, densely packed data centers running automatically managed, self-service provisioned, virtualized and standardized environments together with statistically smoothed out demand, aggregated over potentially millions of users, drops per user per annum costs low enough to even be potentially covered entirely by advertising revenue. In this talk, you will learn about the important concepts on the supplier side: pay-as-you-go, multi-tenancy, dev-ops automation; on the demand side: transfer of capital expenditure to operational expenditure, improved best practice uptake, easier partner collaboration; as well as on the market side: Freemium business models, some money and power arguments behind net neutrality, and the role of public policy e.g. governmental directives and data protection laws on the market.

Video Producer: Jazoon Conference

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