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
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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