Economies of Scale

• Ability to do things more efficiently or at a lower-cost per unit when operating at a larger scale.
• Cloud providers are large businesses leveraging the benefits of economies of scale.
  • Providers can then pass the savings on to their customers.
• Cloud providers can also make deals with local governments and utilities to get tax savings
  • lowering the price of power, cooling, and high-speed network connectivity between sites.
• Enables end users (customers) to acquire hardware at a lower cost than what you could achieve on your own.