Moore's Law and it's impact on Google Cloud Pricing

I just got back from a Google Cloud event in San Francisco and I am pleasantly surprised to find out that I missed something.

I knew that for us to be successful we had to focus exclusively on what we know best; our industry and the creation of software for it. What we didn't know, and didn't and want to spend money on learning, was how to build and manage server farms with co-location points around the globe.

We knew that those who are experts at that type of infrastructure could do it better than us, and because of their expertise and economies of scale, they could also do it cheaper.

We also knew that if we took this route, and leveraged our digital signage expertise, we could create an application that was incredibly cost effective to operate, and we could make it available to everyone for free. No complicated sales agreements, expensive feet on the ground selling, nothing. 

And, because we were relying on the infrastructure experts behind Google App Engine we knew that opening the tap and making it free to everyone wouldn't take us down. We could scale globally to meet demand, when demand warranted it, and we would just pay our share of what we use. No commitment, just pay as we use. Awesome. Couldn't ask for more. Or so I thought.

So here is what I missed. The impact of Moore's Law on the cost of computing. My cost models assumed the expense of using Google App Engine would increase with the rate of inflation. What Google just told me is that no, that doesn't make sense. Moore's Law is lowering their costs on a constant basis, and therefore they have, and will continue to lower our costs. And it wasn't an academic discussion, they just chopped our expenses by as much as 85% in some cases. Thank you Moore! And Google!

So... what does this mean? It means that we made the right choice. Holy crap did we make the right choice. And it also means that we can now focus even more on what we do best, building software, and make even more of it available for free. I like where this is going