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Tag Archives: utility computing

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.

  1. Utility services cost less even though they cost more.
  2. On-demand trumps forecasting.
  3. The peak of the sum is never greater than the sum of the peaks.
  4. Aggregate demand is smoother than individual.
  5. Average unit costs are reduced by distributing fixed costs over more units of output.
  6. Superiority in numbers is the most important factor in the result of a combat (Clausewitz).
  7. Space-time is a continuum (Einstein/Minkowski).
  8. Dispersion is the inverse square of latency.
  9. Don’t put all your eggs in one basket.
  10. An object at rest tends to stay at rest (Newton).
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This blog is dedicated to quantitative analysis of the means by which cloud computing creates value. As an example, how do different strategies for node (data center) dispersion reduce end-to-end latency? I am Joe Weinman, and my simulation website is Complex Models.  My other blog, The Network Effect, is focused on network structure and dynamics.  I propose the “10 Laws of Cloudonomics” in BusinessWeek, courtesy of the GigaOM Network.