Click here to close now.

Welcome!

BigDataExpo® Blog Authors: Lori MacVittie, Pat Romanski, Elizabeth White, Liz McMillan, Hovhannes Avoyan

Related Topics: CloudExpo® Blog, Microservices Expo, Microsoft Cloud, Containers Expo Blog, BigDataExpo® Blog, SDN Journal

CloudExpo® Blog: Article

Moore’s Law Gives Way to Bezos’s Law

The future of cloud computing is the availability of more computing power for much lower cost

Cloud providers Google, AWS and Microsoft are doing some spring-cleaning - out with the old, in with the new - when it comes to pricing services.

With the latest cuts, here's a news flash: There's a new business model driving cloud that is every bit as exponential in growth -- with order of magnitude improvements to pricing -- as Moore's Law has been to computing. Let's call it "Bezos' Law," and go straight to the math

Bezos' law is the observation that, over the history of clouda unit of computing power price is reduced by 50% approximately every 3 years

If Bezos' law reflects reality, most enterprises should dump their datacenters and move to the public cloud. Let's factor in recent events.

Google was first to announce "deep" cuts in on-demand instance pricing across the board.  GigaOm's Barb Darrow was quick to capture the excitement: And bam: Google cuts on-demand cloud prices by a third, demos live migration for its cloud

To make the point that cloud pricing has been long overdue, Google's Urs Hölzle showed just how much cloud pricing hasn't followed Moore's Law. Over the past five years, hardware costs decreased by 20-30 percent annually, but public cloud prices fell at just 8% annually.

Having watched AWS announce, by my count, 43 price cuts during the past eight years, the claim of merely a 6-8% drop for public cloud seems off.

A look at Wikipedia defines Moore's Law.

Moore's law is the observation that, over the history of computing hardware, the number of transistors on integrated circuits doubles approximately every two years

If you were to apply a Moore's Law approach to capture the rate of change for cloud, you could hold constant the compute unit, while the gains are expressed in terms of lower price.

Bezos' law is the observation that, over the history of clouda unit of computing power price is reduced by X% approximately every Y years.

Or

Bezos' law is the observation that, over the history of clouda unit of computing power is increased by X% approximately every Y years at a fixed price.

Either approach illustrates what is happening to computing power and cost over time.

A bit of digging on Amazon's Web Services blog shows how Amazon determined the percentage in computing power (X) and time period (Y) on May 29, 2008. The data from 2008 and the Amazon EC2 Spot Instances on April 1, 2014, shows that in six years, similar compute instance types have declined by 16 percent for medium instances and 20 percent for extra-large instances. Assuming a straight line, the pricing would have tracked as follows:

Year Price Reduction


20%
2008 $0.800 $0.640
2009 $0.640 $0.512
2010 $0.512 $0.410
2011 $0.410 $0.328
2012 $0.328 $0.262
2013 $0.262 $0.210
2014 $0.210
1-Apr-14 $0.210

 

Clearly, cloud, as opposed to building or maintaining a data center, is a much better economic delivery approach for most companies.

How can an enterprise datacenter possibly keep up with the hyper-competitive innovation from Amazon, IBM, Google and Microsoft? Enterprising tech pros know how this is going to play out. They're way ahead in asking: "Why should we continue to saddle our company with a huge cost anchor called a datacenter or private cloud?"

Opinions may differ, but the math doesn't lie. It's not question of if we're moving to the cloud but how - and when. If you are moving enterprise applications to the cloud, AppZero is the fastest, most flexible solution.  You can learn more here and watch an actual migration (video) here.

More Stories By Greg O'Connor

Greg O'Connor is President & CEO of AppZero. Pioneering the Virtual Application Appliance approach to simplifying application-lifecycle management, he is responsible for translating Appzero's vision into strategic business objectives and financial results.

O'Connor has over 25 years of management and technical experience in the computer industry. He was founder and president of Sonic Software, acquired in 2005 by Progress Software (PRGS). There he grew the company from concept to over $40 million in revenue.

At Sonic, he evangelized and created the Enterprise Service Bus (ESB) product category, which is generally accepted today as the foundation for Service Oriented Architecture (SOA). Follow him on Twitter @gregoryjoconnor.

@BigDataExpo Stories
The cloud is everywhere and growing, and with it SaaS has become an accepted means for software delivery. SaaS is more than just a technology, it is a thriving business model estimated to be worth around $53 billion dollars by 2015, according to IDC. The question is - how do you build and scale a profitable SaaS business model? In his session at 15th Cloud Expo, Jason Cumberland, Vice President, SaaS Solutions at Dimension Data, discussed the common mistakes businesses make when transitioning t...
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial C...
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization's assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In...
Storage administrators find themselves walking a line between meeting employees’ demands to use public cloud storage services, and their organizations’ need to store information on-premises for security, performance, cost and compliance reasons. However, as file sharing protocols like CIFS and NFS continue to lose their relevance, simply relying only on a NAS-based environment creates inefficiencies that hurt productivity and the bottom line. IT wants to implement cloud storage it can purchase a...
Are your Big Data initiatives resulting in Big Impact or Big Mess? In her session at Big Data Expo, Penelope Everall Gordon, Emerging Technology Strategist at 1Plug Corporation, shared her successes in improving Big Decision outcomes by building stories compelling to the target audience – and her failures when she lost sight of the plotline, distracted by the glitter of technology and the lure of buried insights. The cast of characters includes the agency head [city official? elected official?...
The emergence of cloud computing and Big Data warrants a greater role for the PMO to successfully manage enterprise transformation driven by these powerful trends. As the adoption of cloud-based services continues to grow, a governance model is needed to orchestrate enterprise cloud implementations and harness the power of Big Data analytics. In his session at Cloud Expo, Mahesh Singh, President of BigData, Inc., discussed how the Enterprise PMO takes center stage not only in developing the app...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. 8th International Big Data Expo, co-located with 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. As advanced data storage, access and analytics technologies aimed at handling high-volume and/or fast moving data all move center stage, aided by the cloud computing bo...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
You use an agile process; your goal is to make your organization more agile. But what about your data infrastructure? The truth is, today's databases are anything but agile - they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver new features and capabilities needed to make your organization competitive. As your application an...
Move from reactive to proactive cloud management in a heterogeneous cloud infrastructure. In his session at 16th Cloud Expo, Manoj Khabe, Innovative Solution-Focused Transformation Leader at Vicom Computer Services, Inc., will show how to replace a help desk-centric approach with an ITIL-based service model and service-centric CMDB that’s tightly integrated with an event and incident management platform. Learn how to expand the scope of operations management to service management. He will al...
Amazon and Google have built software-defined data centers (SDDCs) that deliver massively scalable services with great efficiency. Yet, building SDDCs has proven to be a near impossibility for companies without hyper-scale resources. In his session at 15th Cloud Expo, David Cauthron, CTO and Founder of NIMBOXX, highlighted how a mid-sized manufacturer of global industrial equipment bridged the gap from virtualization to software-defined services, streamlining operations and costs while connect...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will addresses this very serious issue o...
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enter...
SYS-CON Events announced today that DragonGlass, an enterprise search platform, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. After eleven years of designing and building custom applications, OpenCrowd has launched DragonGlass, a cloud-based platform that enables the development of search-based applications. These are a new breed of applications that utilize a search index as their backbone for data...
Amazon, Google and Facebook are household names in part because of their mastery of Big Data. But what about organizations without billions of dollars to spend on Big Data tools - how can they extract value from their data? In his session at 6th Big Data Expo®, Ali Ghodsi, Co-Founder and Head of Engineering at Databricks, discussed how the zero management cost and scalability of the cloud is addressing the challenges and pain points that data engineers face when working with Big Data. He also s...
While there are hundreds of public and private cloud hosting providers to choose from, not all clouds are created equal. If you’re seeking to host enterprise-level mission-critical applications, where Cloud Security is a primary concern, WHOA.com is setting new standards for cloud hosting, and has established itself as a major contender in the marketplace. We are constantly seeking ways to innovate and leverage state-of-the-art technologies. In his session at 16th Cloud Expo, Mike Rivera, Seni...