Percentage/ratio cost differences are not *exactly* what drive cost-based
decisions. To illustrate why, consider these two hypothetical scenarios:

1. A 1 TB hard disk costs $100 and a 1 TB SSD costs $1000.
2. A 1 TB hard disk costs $1 and a 1 TB SSD costs $10.

In both cases the SSD is 10 times more expensive -- 1000%. But in Case #2
*both* are more affordable -- both experience 99% price drops -- and both
more easily fit within more budgets. SSD only has to get "affordable
enough" to take over more use cases from hard disks. Said another way,
absolute prices matter. Said yet another way, the zero lower bound matters.

A lot of people overlook this reality, but it's a frequent phenomenon in
many markets.

--------------------------------------------------------------------------------------------------------
Timothy Sipples
IT Architect Executive, zEnterprise Industry Solutions, AP/GCG/MEA
--------------------------------------------------------------------------------------------------------

E-Mail: [email protected]
----------------------------------------------------------------------
For IBM-MAIN subscribe / signoff / archive access instructions,
send email to [email protected] with the message: INFO IBM-MAIN

Reply via email to