IAAS clouds as a commodity

IAAS clouds as a commodity

Nov 25 2011Petri Aukia

Commodity

Non-commodities

Commodity?

http://en.wikipedia.org/wiki/Commodity

• A commodity is a good for which there is demand, but which is supplied without qualitative differentiation across a market.

• … price is determined as a function of its market as a whole.

• goods that formerly carried premium margins for market participants have become commodities, … silicon chips.

Spot capacity

Why does Amazon sell a commodity?

High cost

Long term

Others try to get in the action

The guys in suits will take the money from the server -huggers

Thank you