- Moore's law (CPU power doubles every 18 months)
- Gilder's law (Fiber bandwidth triples every 12 months)
- Storage capacity doubles every 12 months (is this called Storage law?)
Now consider some of the business dynamics based on network effects:
Open Source software + Cloud compute model helps with Economies of Scope (i.e breadth of activities you need to handle in a profitable way) in an unprecedented way: you just don't worry about IT needs in the traditional manner anymore.
Meanwhile HW innovation trends discussed above + Network effects + Cloud compute model can also help with Economies of Scale (e.g. pay as you go model with AWS) by letting you build on a business model with miniscule "conversion rates" off of a very large online customer base.