The World Runs on Computing Power: let’s make it more efficient

The world’s economy has long been fueled by trade among regions. Whether it’s iron, automobiles, or oil, it’s this act of exchange that keeps supply and demand balanced, and economies thriving. In this way, products can be purchased from neighboring countries they normally wouldn’t have access to, short of travelling around the globe.

With this concept in mind, we recently announced our participation in Deutsche Börse’s industry-first, marketplace platform for IaaS cloud computing resources as part of its Early Adopter Program.

Technology is revolutionizing the modern global economy. As more and more goods and services rely on computing power partly or wholly, we can increasingly think of computing resources as a fuel that drives the global economy, much like we think of oil. In fact, finding an extraction of oil itself relies very heavily on computing power nowadays.

Cloud computing represents a way to more efficiently deliver that fuel to the market. In other words, cloud computing has the ability to revolutionize the effective cost of computing through increased efficiencies both in terms of generation and distribution. It’s like saying you can deliver a barrel of oil to the refinery at half the cost of previous methods. The potential impact is just as profound. Just as a falling oil price is known to have a major positive impact on economic growth and activity, so an accelerated fall in the price of computing can have an equally positive impact.

A key resource for the global economy is in fact computing and this is a trend that is accelerating over time. On the one hand, the shift towards cloud as a delivery and management mechanism for that resource has massive implications for the efficiency and cost of that resource going forward. On the other hand, the emergence of markets to trade that resource more efficiently is hugely exciting in further driving forward the vision of computing as a utility that we have always been committed to since our founding. With a liquid market that allows participants to seamlessly trade storage (or compute), for example, capacity is easily bought for ad-hoc needs, while suppliers, including CloudSigma, can sell capacity directly, or trade it among themselves, thereby revealing new business opportunities. For example, if an AWS customer wanted capacity in a location where AWS doesn’t have a presence, such as Zurich, the company could easily purchase it from CloudSigma (who does have a location in Zurich) and vice versa. In this way, CloudSigma remains true to its core value proposition, that compute power should be shaped by the needs of the user, allowing for premiere cost efficiency, performance, transparency and availability.

The upshot of all this is better utilization management which supercharges the inherent potential of cloud computing as a superior delivery mechanism for computing resources. Increased efficiency at the supplier level feeds into more competitive prices for computing resources which spurs innovation and economic growth. It’s a virtual circle that we are committed to drive forward.

Our hope is that initiatives like Deutsche Börse’s Early Adopter Program for its cloud computing marketplace are a step in the right direction, encouraging other flexible public cloud providers to embrace the tradability of compute resources. With this, providers are granted new opportunities, while customers continue to reap all the benefits of the cloud they have come to love, no matter where they are located!

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