Moving to on-demand computing means a much greater pairing of capacity and demand, as companies will pay for what they need, as opposed to maintaining this steady amount of capacity that's some times underutilized, other times overutilized. Capacity can adjust to customer needs and they only pay for what they need.

One example of this «democratizing of the Web» he cited was a big computing job at The New York Times. The venerable newspaper had scanned all of its issues dating back to the mid-1800s in TIFF file format, which is very big.

Faced with converting 4TB of TIFF files to something more usable, an IT staffer at the Times rented time on a 100 virtual machines on Amazon EC2 to convert all the TIFF files to PDF, which is smaller, lighter and easier to transfer over the Internet. The job was done in 24 hours and cost $240. It was a lot cheaper than tying up Times Co. servers for hours or days on the conversion, assuming the company had the horsepower to spare.

«I don't think companies have realized what this is going to mean,» said Carr. «Not only what they can do quickly and cheaply without having to make a big investment, but the IT department won't be the bottleneck for big computing jobs within the company.»


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