Cloud will decrease costs, and increase usage of compute power

Great post on the changing economics of cloud computing.

Adoption of private clouds should (ignoring the benefits of using commodity hardware) provide a 5 x reduction in price per unit. Based upon historical precedents, you could expect this to lead to a 10-15x increase in consumption as we find the long tail of applications that companies desire becomes ever more feasible.

via blog.gardeviance.org

The thesis goes to the heart of what I believe. Cloud and virtualization will enable 10-100x increase in consumption of compute resources.

This will require a new management layer and new roles.