I’ve been thinking about characterizing the strategic advantages of cloud service providers — there must be a compelling value proposition vs. do-it-yourself, and not just for start-ups or small businesses, but for large enterprises as well. I will post specific analyses of each law here, but an overview of the 10 Laws of Cloudonomics can be found at BusinessWeek, or as originally posted on the GigaOM Network.
- Utility services cost less even though they cost more.
- On-demand trumps forecasting.
- The peak of the sum is never greater than the sum of the peaks.
- Aggregate demand is smoother than individual.
- Average unit costs are reduced by distributing fixed costs over more units of output.
- Superiority in numbers is the most important factor in the result of a combat (Clausewitz).
- Space-time is a continuum (Einstein/Minkowski).
- Dispersion is the inverse square of latency.
- Don’t put all your eggs in one basket.
- An object at rest tends to stay at rest (Newton).