...by Daniel Szego
"Simplicity is the ultimate sophistication."
Leonardo da Vinci

Thursday, February 23, 2017

Cloud technology and the network effect

I must admit, cloud technology has become clearly a winner because of the network effect. Surprisingly not just because of the economy of scale, economy of scope and cost factors but due to the network effect between the different technologies. As an example there is an efficient machine learning algorithm in the Azure cloud, the technology is used in analyzing security breaches of the basic infrastructure to improve security working with data sets from all around the world. The improved machine learning assisted security is used to improve the whole infrastructure of every services, even for the infrastructure of the machine learning part. That is a real network effect of technology integration.