Economies of scale in computing: Grosch's law revisited

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.

REFERENCES

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INDEX TERMS

Primary Classification:
  C. Computer Systems Organization

Additional Classification:
  C. Computer Systems Organization
  C.5 COMPUTER SYSTEM IMPLEMENTATION

  K. Computing Milieux
  K.6 MANAGEMENT OF COMPUTING AND INFORMATION SYSTEMS

General Terms:
Economics, Management, Performance