By Michael Marr
Expert Author
Article Date: 2010-09-09
The price of Cloud Computing continues to fall as Amazon announced in their blog recently that they are once again reducing prices for their cloud services.
The trend of the decreasing cost for cloud services is a good thing, and is certainly apparent at Amazon over the last year (see blog posts about price drops in June and February). Applying general economics to this trend means a few realities are taking place. One, supply is beginning to catch up with and out pace demand. Not only are individual companies increasing their capacity to support more cloud computing services, but more companies are also getting into the fray. This increase in companies in the competitive market further increases supply. It is safe to assume that demand for cloud services is not constant, but rather continuing to increase. Therefore, this increase is supply has to be out pacing demand in order for these market wide decreases to exist.This downward trend will continue as long as the supply continues to out pace the increasing demand. As the price continues to drop, ideas such as utilizing cloud computing for smaller applications becomes more relevant and plausible. When the price of cloud computing reaches this level and is actively competing for smaller scale applications, the insertion of itself into these new markets will continue to drive demand for cloud computing.
At the current pace, it is conceivable that cloud computing will become the accepted norm for delivery of any web service, including simpler low-traffic websites. The benefits of cloud computing are even applicable to these smaller sites and applications, and thus if price is a non-factor cloud computing should be the choice over standard web hosting services. Things are certainly looking up for those involved with cloud computing.
