Reply to post: Simplifications in server hardware might beat cloud offerings

Michael Dell? More like Michael in-Dell-nial: No public cloud, no future

naive

Simplifications in server hardware might beat cloud offerings

On premises hardware still has significant cost cutting potential. Suppliers of cloud based services mainly realize lower prices by using simpler server hardware, instead of an over engineered 1U servers costing at least $ 2000,- in a basic config, they use non standard and simple blade like setups. Same goes with networking, instead of premium brand firewalls costing in the 5 digits range, they also use simpler designs. Maybe they also get reduced prices for Windows CAL's.

Once the main stream 1U Xeon box manufacturers like DELL come up with a concept for replacing the typical mid scale data center filled with 50-100 1U boxes requiring an initial investment of around $ 500,000.- with some blade like systems like the big cloud boys use, requiring half of this investment, they could perhaps compete better on price with cloud providers.

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