Ronnie05's Blog

Cloud computing rides on spiralling Energy costs

Posted in The cloud and the open source by Manas Ganguly on August 26, 2009

A report by US researchers has shown the increasing cost of power and cooling in the data centre is a driver towards cloud computing. Rising power and cooling costs makes it more economically viable for companies to hold data in large centralised hubs. Half of the total cost of these facilities [data centres] is cooling and power distribution. This wasn’t true 10 or 15 years ago. The implication is the need to have larger centralised facilities to take this cost.

This gives the advantage to people doing cloud computing, making it more economically viable to do computation within the cloud instead of your own data centre.

There were three benefits associated with the cloud computing model.

  • The first being that cost per computation would be less as it would be spread over more users.
  • Secondly servers would be better utilised, or be able to handle more “diversity”. An example of the diversity effect is geographically load re-distribution/re-location.Companies would have peak demands at different times depending where they were based. This means the servers would be utilised throughout the day [and night] rather than all at the same time.
  • The final benefit is the end to arguing over the budget split between hardware and power within a company’s IT department as that decision was passed onto an external company.

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