50% price reduction every three years — definitely an interesting idea to map against future computing needs for any business, and product planning requirements in datacenter and online service build outs
Originally posted on Gigaom:
Cloud providers Google(s GOOG), Amazon(s AMZN)Web Services (AWS) and Microsoft(s MSFT) are doing some spring-cleaning, and it’s out with the old, in with the new when it comes to pricing services. The latest cuts make it clear there’s a new business model driving cloud that is every bit as exponential in growth — with order of magnitude improvements to pricing — as Moore’s Law has been to computing.
If you need a refresher, Moore’s Law is “the observation that, over the history of computing hardware, the number of transistors on integrated circuits doubles approximately every two years.” I propose my own version, Bezos’s law. Named for Amazon CEO Jeff Bezos, I define it as the observation that, over the history of cloud, a unit of computing power price is reduced by 50 percent approximately every three years.
I’ll show the math below, but if Bezos’ law reflects reality, the only conclusion…
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