Cloud Computing Economies of Scale

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High-scale cloud services provide economies of scale of five to ten times over small-scale deployments, and are becoming a large part of both enterprise information processing and consumer services. This talk details the costs, and cost advantages, of high-scale, cloud services. We begin with an inventory of the infrastructure costs, tracking power distribution and losses from 115kV at the property line through all conversions into the data center to final delivery at semiconductor voltage levels. We then look at the mechanical systems responsible for transporting heat from the servers through to heat dissipation outside of the data center. We conclude with a detailed discussion of cloud computing cost advantages.

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