

Google: The cost of hardware is falling faster than the price of cloud - prohor
http://www.networkworld.com/article/2466146/public-cloud/google-the-cost-of-hardware-is-falling-at-a-faster-rate-than-the-price-of-cloud.html

======
walterbell
> because of Moore’s Law, computing power is increasing as price decreases.

Is this referencing storage or compute? If Google Drive is using deduplication
for consumer data, that would also be reducing costs.

~~~
nostrademons
I think it's storage - the article doesn't say so, but I've heard Google make
similar statements before that were in terms of $/MB of disk. It's the price
of the raw hardware though; it doesn't take into account any software
optimizations like deduplication or compression.

Also, Amazon EC2 Spot Instances are priced on an auction system, so you can
get a rough idea of the market-clearing price from the spot price. (With some
distortion because Amazon controls the allocation of machines to spot vs. on-
demand services.) Currently it's about an order of magnitude lower than on-
demand prices, giving you some idea of how much farther prices could fall and
what Amazon's profit margins might be.

