The Lighter Side Of The Cloud – Progress
The Lighter Side Of The Cloud – Cloud Training
The Lighter Side Of The Cloud – All Platforms

Looking Back at Joe Weinman’s 10 Laws of Cloudonomics

Looking Back at Joe Weinman’s 10 Laws of Cloudonomics

Back in September 2008, Joe Weinman, Strategic Solutions Sales VP for AT&T Global Business Services, came up with a new term “Cloudonomics” to describe the economic effects of cloud computing. At that time, cloud computing hadn’t entered the popular lexicon and his definition went a long way towards popularizing the technology.

During this time, Weinman also came up with what he called “The 10 Laws of Cloudonomics.” Now, two and a half years later when cloud computing has somewhat matured as a technology, it will be interesting to look back at these “laws” in the current context.

1. Utility services cost less even though they cost more.
When a company goes on to the cloud, it may pay more per unit of the service than if it owned the resources itself. But, with cloud computing’s on-demand revenue model, it doesn’t pay anything when those services are not required. This works out much cheaper in the long run.  (See: How Cloud Computing Can Save You Money)

2. On-demand trumps forecasting.
Services can be easily scaled up, and just as importantly, scaled down as per demand with cloud computing. However, forecasting demand is tricky at best and hence, servicing such demand with traditional IT infrastructure often results in waste of resources if overestimated, and not being able to meet requirements if underestimated. (See: Fighting Above Your Weight Class Through Cloud Computing)

3. The peak of the sum is never greater than the sum of the peaks.
Companies allocate resources to meet peak demands – April 15 for tax firms, Black Friday for retailers, etc. Hence, resources allocated add up to the sum of these individual peaks. However, with cloud computing’s flexibility, the same resources may be allocated across companies with different peak periods. Consequently, resources required are lower.

4. Aggregate demand is smoother than individual.
This is a derivative of the third law. Multiple users smooth out the demand curve, thereby ensuring maximum utilization of resources.

5. Average unit costs are reduced by distributing fixed costs over more units of output.
This is the application of an accepted theory of economics – economies of scale. Cloud computing service providers can utilize economies of scale which even the largest companies cannot with their internal IT infrastructures.

6. Superiority in numbers is the most important factor in the result of a combat (Clausewitz).
Quoting the expert war strategist, Weinman argues that large cloud providers are much better equipped to ward off distributed denial of service (DDoS) attacks than individual companies’ internal IT systems. See: (Cloud Computing Risks (And How to Deal With Them)

7. Space-time is a continuum (Einstein/Minkowski).
The success of a business often depends on the rapidity of its decision-making. Often, this process can be accelerated by processing several queries in parallel. With cloud computing allowing for parallel processing of the highest order, it can make businesses more successful. On a similar note, I had explored how smaller universities can access supercomputing power through cloud computing. (See: How Can Cloud Computing Help In Education?)

8. Dispersion is the inverse square of latency.
Latency is the delay between making a request and getting a response. Reduction in latency is directly proportional to square of the nodes servicing that request. With cloud computing, this is much easier to implement.

9. Don’t put all your eggs in one basket.
This law deals with redundancy, an idea I had mentioned several times in earlier articles. (See: Is Cloud Computing Secure? Yes, Another Perspective) To put this into perspective, consider that the reliability of a system with n redundant components, each with reliability r, is 1-(1-r) x n. So if the reliability of a single data center is 99%, two data centers provide 99.99% reliability and three data centers provide 99.9999% reliability. With multiple data centers, you can get almost close to 100% reliability.

10. An object at rest tends to stay at rest (Newton).
Once a traditional IT infrastructure setup is established, a company is locked into that location for a long period of time. Even if other locations prove more advantageous in the near future, relocation costs prevent migration. With cloud computing, there’s no such restriction.

By Sourya Biswas

sourya

Sourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a freelance journalist with several articles published online. After 6 years of work, he has decided to pursue further studies at the University of Notre Dame, where he has completed his MBA. He holds a Bachelors in Engineering from the Indian Institute of Information Technology. He is also a member of high-IQ organizations Mensa and Triple Nine Society and has been a prolific writer to CloudTweaks over the years... http://www.cloudtweaks.com/author/sourya/

Sorry, comments are closed for this post.

Popular Archives

Cloud Infographic – What Is The Internet of Things?

Cloud Infographic – What Is The Internet of Things?

What Is The Internet of Things? “We’re still in the first minutes of the first day of the Internet revolution.”  – Scott Cook The Internet of Things (IOT) and Smart Systems are based on the notions of Sensors, Connectivity, People and Processes. We are creating a new world to view and measure anything around us through…

Internet Of Things – Industrial Robots And Virtual Monitoring

Internet Of Things – Industrial Robots And Virtual Monitoring

Internet Of Things – Industrial Robots And Virtual Monitoring One of the hottest topics in Information and Communication Technology (ICT) is the Internet of Things (IOT). According to the report of International Telecommunication Union (2012), “the Internet of things can be perceived as a vision with technological and societal implications. It is considered as a…

Cloud-Based VOIP – 4 Alternatives To Skype

Cloud-Based VOIP – 4 Alternatives To Skype

Cloud-Based VOIP – 4 Alternatives To Skype Skype is the most popular cloud-based VOIP service. Since being bought out by Microsoft for $8.5 billion in 2011 the company has grown to more than 300 million users and now accounts for 34% of all international calls. Some people don’t want to use Skype though. Reports of…

Surprising Facts and Stats About The Big Data Industry

Surprising Facts and Stats About The Big Data Industry

Facts and Stats About The Big Data Industry If you start talking about big data to someone who is not in the industry, they immediately conjure up images of giant warehouses full of servers, staff poring over page after page of numbers and statistics, and some big brother-esque official sat in a huge government building…

Cloud Computing – A Requirement For Greater Innovation

Cloud Computing – A Requirement For Greater Innovation

Cloud computing – Greater Innovation! Sao Paulo, Brazil has had trouble with both energy and water supplies as of late. Despite it is the rainy period. Unfortunately Sao Paulo is very dependent on its rain as a majority of its power is generated from large dams. No water, no energy. Difficult situation for a city…

Recent

Is The Internet of Things A Perfect Storm?

Is The Internet of Things A Perfect Storm?

Is The Internet of Things A Perfect Storm? There has been a great deal of discussion surrounding the Internet of Things over the past couple of years as more companies are taking an active and aggressive interest. IBM for example has recently decided to invest $3 Billion over the next 4 years. “Our knowledge of…

Digital Transformation: Miracle and Wonder

Digital Transformation: Miracle and Wonder

Digital Transformation These are the days of miracle and wonder. I’ve been leading a small, global research team at the Tau Institute for the past few years to examine the dynamics of IT adoption in more than 100 countries throughout the world. We’ve developed several indices that show how well these nations are doing on a relative basis. We ranked the nations…

Cloud Security Hottest Issue At RSA

Cloud Security Hottest Issue At RSA

Cloud Security Hottest Issue The integral integration of cyber security and cloud technology seemed to be the hottest issue at the busy RSA 2015 Conference in San Francisco. Interested parties packed security and cloud service booths for the duration of the conference. Several prominent publications covered the increased importance of securing their private information that’s…

Contact Us

Sending

Technology Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100
Site 24x7 200px-KPMG

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

CloudTweaks Comic Library

Advertising