Model: Cloud Computing benefits

July 26th, 2022

(compare with Model: AWS Cloud Value Framework)

(compare with Model: 4 benefits of cloud computing)


Cloud Computing Benefits

  1. variable expenses (vs upfront expenses)

  2. cost optimization (don't invest in maintaining data centers)

  3. capacity (peak use vs rest of year)

  4. economies of scale (AWS buys a lot, can get that cheaper)

  5. Speed and agility (time between wanting resources vs having resources)

  6. Global in minutes


(1) variable expenses

  • upfront expenses - invest before using

  • variable expenses - pay what you use


(2) cost optimization


  • run data centers

  • applications

  • customers

no need to invest in "run data centers"

very few businesses have a core business in running servers


(3) capacity

peak use

eg. retail at Christmas period

  • guess your peak use needs

  • scale in and out as needed


(4) economies of scale

AWS passes on savings to customers

if you buy 1 laptop, you pay the shop price

if you buy 10, you might get a special price

if you buy 1000, you will get a lower price

  • pay "normal" price based on only your usage

  • benefit (partially) from aggregated use (all AWS customers)



(5) Speed and agility

time between wanting and having resources

  • data centers: weeks

  • cloud: minutes


(6) Global in minutes

  • deploy worldwide

  • use AWS global infrastructure