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Co-Founder, CTO at Cloudscaling.  Since 1990, Randy has driven innovations in infrastructure, IT, operations, and 24×7 service delivery. He was the technical visionary at GoGrid and built the world’s first multi-cloud, multi-platform cloud management framework at CloudScale Networks. He led the open-licensing of GoGrid's API, which inspired Sun Microsystems, Rackspace Cloud, VMware and others to open-license their cloud APIs. Randy blogs @ Cloudscaling blog, is recognized by The Next Web as one of the 25 Most Influential People Tweeting About Cloud, is frequently interviewed and speaks at dozens of industry events annually.

2 responses to “Public Cloud Economies of (Web-)Scale Aren’t About Buying Power”

  1. What Do Optimus Prime and Cloud Have In Common? Transformative Power. Apprenda Marketwatch | Apprenda

    […] Public Cloud Economies of (Web-)Scale Aren’t About Buying Power“…we need to address the so-called “economies of scale” that large public cloud providers enjoy. Simply put, economies of scale are structural cost advantages that come from sufficient size, greater speed, enhanced productivity, or scale of operation. Unfortunately, many folks..fall into the trap of assuming that “economies of scale” == “buying power.” Buying power can be an element of achieving scale, but it is seldom a structural or sustainable advantage, certainly not against other large businesses who can command similar quantities of capital. No, the real economies of scale that are relevant here are the tremendous investments in R&D that have led to technological innovations that directly impact the cost structures of Amazon Web Services, Google Cloud Platform, and Microsoft Azure. Here are some examples of what I mean…” Via Randy Bias, Cloud Ave […]

  2. Eamon Walsh (@Eamon_Walsh1)

    >New datacenters and hardware won’t provide a true structural cost advantage. That can only come through investment in R&D and a proven track record of innovation in public cloud, neither of which IBM is clearly succeeding in.

    That’s an agreeable insight, Randy! IBM has fallen off the radar in that race for a while now. Even HP, with their innovative big data metrics tools like haven, and changing their stance as cloud SP ( are some yards ahead. Amazon is purely one of big boys by virtue of having started early and consistently re-inventing to strengthen it’s original foundation.