CHARTS: Look How Astoundingly Cheap Cloud Computing Has Become

Jeff bezos podiumAP Photo/Reed SaxonAmazon CEO Jeff Bezos

Kleiner Perkins partner Mary Meeker just published her annual look at the “State of the Internet” and this set of charts really jumped out: the plummeting cost of computing power and storage thanks to the trend of cloud computing.

Cloud computing is when companies rent and share computers owned by a tech provider, accessing them over the internet. They do this instead of buying them and installing them in their own data center, which is the old way of doing things.

This shared model, pioneered by Amazon Web Services, coupled with what Amazon calls its “culture of frugality” where it constantly looks to save money and pass those savings to its customers, has radically changed the computing market.

This shift has caused some of the world’s biggest tech companies like IBM and HP into major changes including layoffs and shedding business units.

Meeker’s slides show what’s been happening in a nutshell.

It is vastly less expensive to rent cloud computing than the old way of doing things.

It is vastly less expensive to rent cloud storage than the old way of doing things.

It is less expensive to use a network to get to your computers and storage housed elsewhere than it used to be.

So, no surprise, people and companies are using the cloud more than ever before.

Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.

NOW WATCH: Tech Insider videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.