{"id":8155,"date":"2018-03-16T07:00:41","date_gmt":"2018-03-16T15:00:41","guid":{"rendered":"http:\/\/formtek.com\/blog\/?p=8155"},"modified":"2018-03-21T06:42:17","modified_gmt":"2018-03-21T14:42:17","slug":"cloud-computing-bezos-law-isnt-working","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/cloud-computing-bezos-law-isnt-working\/","title":{"rendered":"Cloud Computing: Bezos’ Law isn’t Working?"},"content":{"rendered":"

First there was Moore’s law, the complexity and computing power of hardware doubles every two years.\u00a0 Then, in 2014, Greg O’Connor<\/a>, former CEO of AppZero, in a post on GigaOm proposed a similar law for Cloud Computing and called it Bezos law:<\/a>\u00a0 “over the history of the cloud, a unit of computing power price is reduced by 50 percent approximately every three years.”<\/p>\n

So cloud computing prices should be dropping dramatically, but\u00a0a study<\/a> by Erik Lu<\/a> at Kapwing<\/a> found that wasn’t the case.\u00a0 Lu compared cloud computing and storage prices from Google and Digital Ocean and found that prices have been steady over the last three to four years. Lu comments that AWS prices were last changed in November 2016 and saw no price reductions throughout 2017. Lu writes that “the idea that new companies will emerge as a result of dropping cloud costs isn\u2019t supported by the data.”<\/p>\n

Interesting.\u00a0 But Bill Supernor<\/a>, CTO at KoolSpan,\u00a0rebuts the case<\/a> presented by Lu and looks at historic numbers on AWS pricing.\u00a0 He in fact does find a fairly dramatic drop in Amazon compute pricing which averaged 58% every three years.\u00a0 Supernor comments that “for the full view of cloud compute cost trends, we need to look at both the cost of specific instance types, and the continually evolving generations of that instance type. When we do this, we can see that the cost of cloud computing is, in fact, dropping dramatically\u2026at least on AWS.”<\/p>\n

Maybe this explains why Google’s cloud effort is struggling.<\/p>\n

 <\/p>\n

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First there was Moore’s law, the complexity and computing power of hardware doubles every two years.\u00a0 Then, in 2014, Greg O’Connor, former CEO of AppZero, in a post on GigaOm proposed a similar law for Cloud Computing and called it…<\/span><\/p>\n

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