Friday, January 9, 2009

Computers Don't Matter

Machines don't matter! The time when each computer was important is now over and the sooner you accept that the easier your life will become. All that matters is that we can access our important information and keep our business functioning. Once you move to the Cloud Paradigm you will free yourself to work from anywhere.

The Old Computing Paradigm
The paradigm we are all used to puts a computer on every desk and shackles each employee to that machine. If the computer fails, the employee's productivity drops to zero. But it wasn't always like that...

The first digital computer is the abacus, and all computers (including yours) work based on similar rules. Nowadays, instead of sliding beads on a string, modern computers simply power transistors on or off to perform calculations. In 1946, the ENIAC using 20,000 vacuum tubes was unveiled as the first programmable, general purpose computer. The invention of the transistor and integrated circuits during the 1960's ushered in the era of big expensive mainframe computers that only large businesses could afford. In 1970 Intel's 4004 microprocessor heralded the beginning of the personal computer era. Because microprocessors were cheaper than their forebearers, it would soon become possible for everyone to own a computer. By the 1980's computers became small enough (and cheap enough) to be fitted into many household appliances, such as washing machines. The 1980's also saw the start of the major market penetration of the personal computer. During the Internet expansion of the 1990's the personal computer became nearly as common as television and the telephone.

The Price Argument
In 1996, the average price of a new computer was $1,647. Two years later, that price fell to $1,317. Today you can buy a Dell Vostro 220 for under $500 or an Asus Eee PC for $170. It doesn't take a math genius to map the trend of declining computer prices. As computer components become cheaper because of new innovations in manufacturing, the base price of a new computer system will continue to decline. That means within a few short years we can logically expect the price of a new computer to be cheaper than a good cell phone.

When it doesn't hurt your pocketbook to buy a new computer, it then becomes cheaper to buy a new computer than to repair the old one. Computers will become disposable commodities. And all of this is happening because the computer doesn't matter. Innovation will continue to drive down component prices as companies vie for larger chunks of market share by producing cheaper and cheaper computers. While there will always be a market for high-end computers (e.g. the Alienware gaming machines), the typical business will embrace the Cloud Paradigm and start storing their data online.

Because very few companies are moving onto the cloud, you could gain a substantial advantage against your competition by embracing the Cloud Paradigm. Start reaping the cost benefits of cloud computing today.

For more information on how to eliminate costs with cloud computing, register for my FREE e-Course at You'll be glad you did.

Louis Rosas-Guyon's FREE 5-week e-Course for Eliminating Tech Costs
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