By Cloud Computing SpunjePublished: February 2, 2010Posted in: Business Intelligence, Cloud Intelligence, Cloud Services, Cloud Solutions, Cloud Technologies, Clouds, Opinions & ExplanationsTags: 
Let’s start by defining what I’m talking about when I say “exchange” here. The idea is that different hosted infrastructure providers would put their unused capacity onto a spot market and buyers would bid for it. Different pricing and auction mechanisms are possible but that’s not important for this discussion. The key points are: multiple suppliers, interchangeable product, and some sort of market for the capacity.
Spot markets are well-established in many other areas. Commodity exchanges are probably the best known. However, dynamic pricing based on inventory and demand is also widespread across the travel industry for example. Hotel rooms and airplane seats have a lot in common with compute cycles: they expire if they’re not used and the incremental cost of filling them is low.
http://news.cnet.com/8301-13556_3-10439681-61.html
As cloud computing in its various forms increasingly happens rather than just being talked about, I’m starting to hear the idea of a cloud-computing exchange floated. There are certainly things to like about the concept but I don’t see it playing out in pure form anytime soon for reasons that I’ll get into
Let’s start by defining what I’m talking about when I say “exchange” here. The idea is that different hosted infrastructure providers would put their unused capacity onto a spot market and buyers would bid for it. Different pricing and auction mechanisms are possible but that’s not important for this discussion. The key points are: multiple suppliers, interchangeable product, and some sort of market for the capacity.
Spot markets are well-established in many other areas. Commodity exchanges are probably the best known. However, dynamic pricing based on inventory and demand is also widespread across the travel industry for example. Hotel rooms and airplane seats have a lot in common with compute cycles: they expire if they’re not used and the incremental cost of filling them is low.
http://news.cnet.com/8301-13556_3-10439681-61.html
As cloud computing in its various forms increasingly happens rather than just being talked about, I’m starting to hear the idea of a cloud-computing exchange floated. There are certainly things to like about the concept but I don’t see it playing out in pure form anytime soon for reasons that I’ll get into
With thanks to our major sponsor!
This Spunje is brought to you in association with CloudIntegrations Ltd (www.cloudintegrations.com). The sponsorship agreement allows us to supply this Spunje for free to the readers and remain completely impartial. CloudIntegrations Ltd have no control over the content that is published. We would like to extend our thanks to CloudIntegrations Ltd for their continued financial support.