The Economics of Cloud Computing and E-waste

Here is a thorough and well written explanation of some of the likely economic effects of the rapid expansion of on-demand cloud computing services. Most of the major players (Google, Amazon, Microsoft et al) are investing huge amounts in building up their server infrastructure to cope with the likely demand for cloud-based computing services. The article explores some of the positive externalities that might result from a move to the cloud and also possible effects on market structures as IT entry barriers for small to medium sized businesses are reduced. “One of the main obstacles to entry in new markets is represented by the high up-front costs of entry, often associated with physical and IT capital spending. Cloud computing allows potential entrants to save in the fixed costs associated with hardware and software adoption” More here For an alternative perspective, the Independent yesterday carried a feature on the externalities of e-waste - a good example to use of some of the external costs of the super-charged growth of IT services. “The United Nations Environment Programme (UNEP) estimated that, worldwide, between 20 and 50 million tonnes of electrical and electronic goods which had come to the end of their lives were being thrown away every year. The latest UNEP report now estimates the annual total at 40 billion tonnes, with America in the lead, producing 3m tonnes domestically every year, followed by China with 2.3m tonnes.” More here