Data Center Journal

VOLUME 44 | JUNE 2016

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By chrIs crosBy THE DATA CENTER JOURNAL | 7 www.datacenterjournal.com Although the economic elements of any data center decision are important, very often they are examined through lens of our remedial memories of Economics 101. In other words, after "supply and demand" we become increasingly unsure of what we're talking about, and if we're honest, it's been awhile since we gave much thought to the whole concept of "S and D" as well. Technically the term economy of scale is defined as the cost advantages that enterprises obtain owing to size, throughput or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

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