What is cloud amortization?


Cloud amortization involves distributing the costs of cloud computing resources more efficiently over time. , CTO for Data at Microsoft, explains that this can be achieved by virtualizing everything from storage to compute. This means selling these resources in incremental blocks, allowing cost sharing among multiple users. By managing a large fleet of machines, cloud providers can intersperse different users' demands, thereby reducing overall costs.

Two main forms of amortization are highlighted:

  1. Infrastructure Sharing: By sharing idle machine resources among users, the costs of power, storage, and administration are reduced.
  2. Platform Development: Building platforms that abstract complex software stacks allows users to focus on their domain knowledge (like biology or business), which reduces the need for specialized training and lowers personnel costs.

These efforts ultimately reduce the total cost of ownership and enhance the efficiency and utilization of data resources 1.

Cloud Amortization

Raghu discusses the concept of amortization in cloud computing, highlighting the benefits of virtualization and the potential for lowering total costs. He also explores the importance of building platforms that simplify the software stack, enabling users to focus on their domain expertise and maximizing the use of data.

Data Skeptic

Big Data Tools and Trends