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July 18, 2011

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  • Nima Badiey

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James

Sounds like a real problem for low-scale privately provisioned clouds - built using expensive proprietary components.

In the modern utility model of high scale services that would be like Salesforce putting up barriers to adopting a new customer, the national grid stressing about a new housing project being wired to the grid, or Facebook/G+ intervening in the sign-up of millions of new users.

Cloud has strong elements of dis-intermediation and scale. Suddenly suggesting that supply is limited is the characteristic of the pre-industrialised state.

George Gilder said “In every industrial revolution, some key factor of production is drastically reduced in cost. Relative to the previous cost to achieve that function, the new factor is virtually free… The whole economy had to reorganise itself to exploit it… You had to waste the power of the steam engine and its derivatives to prevail, whether in war or peace.”

Chris Anderson said “If the abundant resources are just one factor in a system otherwise constrained by scarcity, they may not challenge the economic orthodoxy. They are then like learning curves and minimised transaction costs – drivers of production efficiency but do not invalidate the laws of economics.”

So if you are saying your cloud resources are in fact scarce and a bottleneck then you have not challenged the economic orthodoxy - perhaps a tad more efficient - but that's all.

Chuck Hollis

James -- thoughtful stuff, so let me attempt to weigh in ...

Yes, my frame of reference was moderate-scale privately provisioned clouds. External, utility-based clouds -- your point is correct. That being said, power utilities *do* stress out about new housing projects :)

We don't have a lot of good societal experience around rapid transitions between scarcity and plenty. I suppose I could point to the correlation between agricultural productivity and obesity? Putting high-calorie fast food in front of people who've been evolutionarily trained to hoard calories -- well, the evidence is all around you :)

Just to be clear, my argument is not that "cloud resources are scarce". The skills and processes around them: funding, governance, intelligent consumption, etc. -- yep, those are scarce.

The argument in favor of some intelligent friction is to allow those skills and behaviors to develop. For example, I've trained my kids to stay away from fast food, even though it's a quick hunger fix -- as it leads to other problems down the road. As they get older, it'll be their choice, though.

I"m sure we'll be all through this in a few years -- people are starting to figure out the new dynamics.

-- Chuck

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Chuck Hollis


  • Chuck Hollis
    VP -- Global Marketing CTO
    EMC Corporation
    @chuckhollis

    Chuck has been with EMC for 17 years, most of them great.

    He enjoys speaking to customer and industry audiences about a variety of technology topics, and -- of course -- enjoys blogging.

    He lives in Holliston, MA with his wife, three kids and four dogs when he's not travelling. In his spare time, Chuck is working on his second career as an aging rock musician.

    Warning: do not buy him a drink when there is a piano nearby.

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