[neelm]

The diagram of the Cost of a Petabyte is very interesting if it is true. It demonstrates the profitability of some SaaS models for selling what is a straight commodity.

However it seems in contradiction to the AWS, Rackspace model, which is a race to the bottom in that there are many competitors and they are selling a commodity (independent of the other high value services they are selling). There is some threshold of volume that is key in order to make money in that space.