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6.1. Economies of Scale.md

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Economies of Scale

  • Ability to do things more efficiently or at a lower-cost per unit when operating at a larger scale.
  • Cloud providers are large businesses leveraging the benefits of economies of scale.
    • Providers can then pass the savings on to their customers.
  • Cloud providers can also make deals with local governments and utilities to get tax savings
    • lowering the price of power, cooling, and high-speed network connectivity between sites.
  • Enables end users (customers) to acquire hardware at a lower cost than what you could achieve on your own.