Bezos’ Law

The future of cloud computing is the availability of more computing power at a much lower cost; Moore’s law thus gives way to Bezos’ law:

Over the history of cloud, a unit of computing power price is reduced by 50% approximately every three years.

 
The cost of cloud computing should naturally track Moore’s law (as the cost of computing is related to the cost of hardware); however, the cost of utilities such as electricity clearly do not follow the same demand curve. Nevertheless, with Amazon Elastic Compute Cloud, Google Compute Engine and Microsoft Azure increasingly competitive on pricing, cloud, as opposed to building or maintaining a data centre, would appear to be a much better economic delivery approach for many companies.

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