The Big Switch

• To understand  and accept changes in technology, we need to date back in time and watch the progression of inventions and innovations.
• We first look at the Water Wheel, where Henry Burden took competitive advantage. He took the advantage through working power more efficiently than any of the other iron manufacturing plants. 

• If we jump in time to 70 years later, the same sight is seen rusted away (although it was still a successful company. 
• A change is occurring to the same innovation, where people are able to build off what people before them started, in order to enhance the work force and its efficiency. However, people watching the change saw this as a risk they worried would be useless. That risk is the beginning of new technology.
• We see this today with how the technology and the internet has progressed. 

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• Now with the advance cloud computing, we see a similar scare in information technology.
• The similarity of  business resources links information technology and electricity, both allowing people to take its platform and build off of it, through things like applications. 
• The idea behind cloud computing is to allow centralization to supply technology and allow it to be shared. Once this is done, companies can invest their capital in their assets or save extra money to spend on what they wish. 

• The largest inefficiency cost, is labor costs necessary to keep the company running.There is no competitive advantage in these routine labor jobs because there hasn't been any other way but for companies to run things themselves. 
• However Carr hopes that now there will be less of these manual jobs and more capital available for the company to invest in other projects, through relying on cloud computing.
• Cloud computing will allow for IT centralizing to be more efficient, reliable and secure.
• There has been a big increase in the acceptance for companies to use cloud computing (might always be because the definition has broadened) 

• Now there is movement from the world wide web computer, to using a computer where we can all log into and rely to get all our power. This idea is cloud computing! This takes the power that used to be brought from servers and hardware and changing it to a centralized computer we all rely on. 
 
  
• The cloud is a  replacement. This means you don't have to set up your data center and buy your own servers. This idea is more attractive to smaller business now. 
• The cloud is a democratizer. This means that there is more computing power to each individual and each person has their own data center.
• The cloud is a revolution. This is the idea that when lowering your costs and broadening the accessibility, you're providing models to be made and a new logic for people to think thorough.