>Google and Amazon invested in them for their own businesses and are now productizing the 'remainders' and getting less and less for it.
Are the prices dropping faster than moore's law? The costs are dropping approximately with moore's law.
Edit: the interesting bit here is just how you lower your prices. In the VPS market, it is traditional to keep charging your customers the same, and to just give them more ram/cpu/disk/network. This is way easier on the bottom line, as your revenue doesn't fall (by much. Most people won't bother changing to a smaller plan, some will.) - in the "cloud" the tradition is a bit more consumer-friendly; the tradition is to just cut the price and hope the consumer will buy more.
Yes, the cost progression of storage is expressed by Kryder's law, and is actually faster than moore's law. (well, in terms of storage space, not storage speed.)
Of course, both are observations and not true laws; things will get interesting if/when the capital and power required per unit compute (or per unit ram or storage) stops dropping.
But, my point is that in the past, the costs involved in providing compute infrastructure has fallen dramatically over time, and most people expect this to continue, at least for a while.
> Yes, the cost progression of storage is expressed by Kryder's law, and is actually faster than moore's law. (well, in terms of storage space, not storage speed.)
In theory, not necessarily in practice. The Thai floods caused a multi-year pause in Kryder's law we're still recovering from. (I'm not sure how robust Kryder's law is - there's a lot less data and analysis of it than Moore's, since that's the famous one.)
Are the prices dropping faster than moore's law? The costs are dropping approximately with moore's law.
Edit: the interesting bit here is just how you lower your prices. In the VPS market, it is traditional to keep charging your customers the same, and to just give them more ram/cpu/disk/network. This is way easier on the bottom line, as your revenue doesn't fall (by much. Most people won't bother changing to a smaller plan, some will.) - in the "cloud" the tradition is a bit more consumer-friendly; the tradition is to just cut the price and hope the consumer will buy more.