22 May 2012

Diseconomies of Scale

Is the cloud a good idea, or a bad idea? The case for a bad idea, from the point of view of clients and providers, has been made here before, but just based on experience and logic. Now, I'm kind of a fan of Seeking Alpha, mostly for comic relief. Most posts there are either blatant pumps or dumps. Every now and again, I'll find one data based and rational. Here's one on AWS, but as the author points out, true for any cloud provider.

If the cloud were the greatest thing since sliced bread, IBM would still have, and be making tons of cash from, its Service Bureau.

No comments: