Are you sure about your first sentence? real estate - don't they explicitly look for cheap real estate and tax breaks? electricity - cloud providers save a lo

Are you sure about your first sentence? real estate - don't they explicitly look for cheap real estate and tax breaks? electricity - cloud providers save a lot on electricity by choosing carefully their locations. Facebook built a datacenter in the Arctic, I don't see your average enterprise doing that. - x86 hardware. They're spending a lot less by having their own custom hardware - engineering talent. They should be saving by using local talent from elsewhere, not Silicon Valley or NYC wages. IBM does that. http://www.slate.com/articles/technology/the_efficient_planet/2012/11/data_center_efficiency_why_google_technicians_wear_shorts_and_t_shirts.html http://www.slate.com/articles/technology/the_efficient_plane... http://www.businessweek.com/articles/2013-10-03/facebooks-new-data-center-in-sweden-puts-the-heat-on-hardware-makers http://www.businessweek.com/articles/2013-10-03/facebooks-ne...