
Contents
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Defining the Cloud, Abstractly Defining the Cloud, Abstractly
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The Value of Common Resources The Value of Common Resources
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The Value of Pay per Use The Value of Pay per Use
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The Interplay of Cloud Pricing with Demand Variability The Interplay of Cloud Pricing with Demand Variability
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Hybrids Are Typically Best Hybrids Are Typically Best
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Complicating Factors Complicating Factors
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The Value of Pay per Use in Parallelism The Value of Pay per Use in Parallelism
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Implications Implications
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The Value of Location Independence The Value of Location Independence
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Implications Implications
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The Value of On Demand The Value of On Demand
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Implications Implications
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Use Cases for the Cloud Use Cases for the Cloud
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The Communications Pattern The Communications Pattern
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The Market Pattern The Market Pattern
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The Repository Pattern The Repository Pattern
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The Replication Pattern The Replication Pattern
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Behavioral Economic Factors Behavioral Economic Factors
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Summary Summary
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Notes Notes
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References References
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Cite
Abstract
Cloud computing is fascinating and disruptive as a technology and IT operations model, but this chapter covers the cloud in terms of its impact on business strategy and economics. Cloud computing can enable a variety of “digital disciplines” that can enable competitive advantage: information excellence, solution leadership, collective intimacy, and accelerated innovation. From an economic perspective, clouds generate value through statistical multiplexing, geographic dispersion, pay-per-use pricing, and reduced provisioning intervals, which may be rigorously quantified through statistics, calculus, trigonometry, and system dynamics analysis and also viewed through the lens behavioral economics. Such an analysis can inform policy.
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