A history lesson on why cloud computing is going to revolutionize IT

1. On-Premise or the Cloud? A History Lesson Microsoft SMB Cloud Champions Club

3. converting from waterwheels & horses to the latest technology – the steam engine.

4. Advantages: didn’t require flowing water and plants did not have to be build beside a stream or river.

6. converting from steam engines and elaborate millwork to – the electric generator.

7. Advantages:

8. didn’t require cumbersome millwork to distribute power

9. Cleaner

10. Easier to control

11. Disadvantages:

12. Expensive to implement

13. Sacrifice previous investments in steam or water

14. Install a dynamo

15. Run wiring throughout the plant

17. General Electric & Westinghouse produced electrical systems and made them more affordable.

18. Factories continued to build their own on–premise power systems

19. Few factories bought electricity from small local central stations.

20. Would not entrust such a critical business function to an outsider.

21. A glitch in power supply would bring their operation to a halt

23. 1892 he became President of Chicago Edison Co. to realize his dream of utility supplied electricity – a true general purpose technology.

24. His biggest challenge: convince industrial businesses that should stop producing their own power and instead buy it’s service from central plants.

25. Factories producing their own power was deeply embedded in the heritage of manufacturing

27. Utilities superior economies of scale could produce electricity much more efficiently and cheaper than companies could achieve with their private dynamos.

28. He bought many small central stations operating in Chicago.

30. Set-up a downtown “electric-shop” to include industrial machines running with electric motors.

31. Advertised every major new industrial company he signed up.

32. Used his influence to plant raving articles in trade publications

34. He renamed it to Commonwealth Edison Co.

35. Some of his new customers previously ran some of the largest isolated plants in Chicago.

37. Reduced fixed costs

38. Freed up capital for more productive purposes

39. Reduced corporate staff

40. Eliminated technology updates & malfunctions

42. By 1920 – 70%

43. By 1930 – 80%

44. Soon thereafter over 90%

45. Thanks to Samuel Insull – the age of private power plants was overThe Big Switch – Rewiring the World, From Edison to Google – Nicholas Carr

48. One More Prediction