To Get Cloud Economics Right, Think Small, Very, Very Small

A startup, who wishes to remain anonymous, is delivering an innovative new business service from an IaaS cloud and most of the time pays next to nothing to do this. This isn't a story about pennies per virtual server per hour - sure they take advantage of that- but more a nuance of cloud optimization any enterprise can follow: reverse capacity planning

Most of us are familiar with the black art of capacity planning. You take an application, simulate load against it, trying to approximate the amount of traffic it will face in production, then provision the resources to accommodate this load. With web applications we tend to capacity plan against expected peak, which is very hard to estimate - even if historical data exists. You capacity plan to peak because you don't want to be overloaded and cause the client to wait, error out, or go to your competition for your service.

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