This chart looks at the long tend trends of wages and hardware. In the long run, administrator wages rise. How and why this is so is unimportant for our discussion. Likewise, in the long run, hardware prices fall. This trend is essentially informed by Moore’s Law.
It follows naturally that when a firm enters the hosting market, administrator wages will form a larger and larger fraction of their costs per customer, and hardware a smaller and smaller portion. So whatever can reduce administrative overhead will reduce costs, and in a competitive market, prices for hosting.
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2008-07-11 04:10
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http://clubtroppo.com.au/2008/07/10/shared-hosting-is-doomed-and-i-have-the-graphs-to-prove-it/
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