Open Stack

On 03/03/14 12:32, Joe Gordon wrote:
>> >- if you're reserving resources far before you'll need them, it'll be
>> >cheaper
> Why? How does this save a provider money?

If an operator has zero information about the level of future demand, 
they will have to spend a *lot* of money on excess capacity or risk 
running out. If an operator has perfect information about future demand, 
then they need spend no money on excess capacity. Everywhere in between, 
the amount of extra money they need to spend is a non-increasing 
function of the amount of information they have. QED.

cheers,
Zane.