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I like the SUV analogy and I appreciate the overall analysis. I agree price is not the only dynamic to consider. Two additional factors: 1. Elasticity Think seasonality of demand, scaling up and down, rightsizing and so on. This impacts price but also impacts monitoring, alerting, and repairing because of the law of large numbers. 2. Time to market Data centers right in your backyard take time to build. Data centers across the globe take much longer. One concept that has stuck with me from Chris Anderson's The Long Tail: "it is easier to move bits than atoms."
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Mar 7, 2015