The cloud will cost you, but you’ll be happy to pay


Originally posted on Gigaom:

What can coal teach us about the cloud?

Today, conventional wisdom suggests that cloud computing will bring increased efficiency to computing markets, which will then decrease costs. Cloud computing will allow organizations to cut IT spending and help relieve pressure on IT budgets. It’s a nice vision, but that’s not going to happen.

The good news is that you’re not going to mind that your cloud computing budget will be higher than what you’re paying now for IT, because you’ll be able to do more. And here’s why.

Coal and clouds, an unlikely pair.

The secret to this counterintuitive state of affairs was explained back in 1865 by a British economist named William Stanley Jevons who was investigating the use of coal within the British empire. Jevons wanted to understand the forces shaping the demand for coal and estimate the time to exhaustion for British coal mines.

William Stanley Jevons…

View original 753 more words

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Posted on June 10, 2012, in Uncategorized. Bookmark the permalink. Leave a comment.

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