Economies of scale in computing: Grosch's law revisited

Authors:
Haim Mendelson
Affiliations:
Univ. of Rochester, Rochester, NY
Venue:
Communications of the ACM
Year:
1987

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Abstract

Does Grosch's law apply in the 1980s? A look at the price and performance of computer systems concludes that there are no economies of scale in computing. Computer technology is characterized by constant returns to scale, a fact that has important implications on future centralization/decentralization decisions.