Does the "Cloud" run on physical servers in datacenters
Posted Jun 12, 2013 15:55 UTC (Wed) by giraffedata
In reply to: Does the "Cloud" run on physical servers in datacenters
Parent article: An introduction to OpenStack
You forgot to add "at the equilibrium conditions". Which doesn't happen because we (as a civilization) experience an economic growth. That in turn creates imbalances and this allows the profit to exceed the breakeven point.
That was included in "efficient." A (theoretical) efficient market reaches equilibrium instantly.
Coming back to analyzing whether it should be cheaper to rent from ServerBeach of own your own, if one believes that inefficiency/growth means we have to add in ServerBeach's profit, one should indicate what particular costs of the inefficiency that profit represents.
All I'm saying is that in making a comparison like this, if you add in one of the supplier's book profits, you'll be double counting. Just add up everyone's costs, not counting transfers from one to another, and compare the totals.
(I say should be cheaper above to distinguish from the alternative method of looking at actual price lists, in which case book profits are again irrelevant).
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