Remove Fixed Costs Remove Government Remove Scaling
article thumbnail

The Cloud is Not a Railroad - An Argument Against the Vertical Separation of Cloud Providers

High Scalability

Would you really trust some committee or government agency to draw this line correctly? A Cloud Provider Absorbs Huge Fixed and Sunk Costs. Cloud providers incur huge fixed costs for creating and maintaining a network of datacenters spread throughout the word. Invent the future you want.

article thumbnail

Talent Strategy: ‘It’s About Being Intentional’

Chief Executive

Many companies were caught off guard by Covid, by the need to scale down and then back up quickly, and by the mass resignations during and after the pandemic’s peak. And the already significant fixed costs of adding staff are only getting steeper. The way she knows it’s working? “We Verizon seems to be in the minority.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Solving the Internet's Congestion Problem

Harvard Business Review

Congestion, rather than raw usage, is the key driver of this phenomenon; given that the Internet Service Provider network is largely a fixed-cost asset. Like any fixed-cost asset, such as the Interstate highway system in the U.S., it is cheap to operate and expensive to upgrade. I've heard arguments for all of the above.

article thumbnail

China’s Slowdown: The First Stage of the Bullwhip Effect

Harvard Business Review

During an economic crisis, the exaggerated decline in orders can be especially damaging to upstream suppliers that have high fixed costs tied to production assets. It reached a peak on June 12 and then proceeded to lose over 40% of its value by the end of August despite efforts by the Chinese government to prop up the market.

Sales 15
article thumbnail

Bringing the Power of Platforms to Health Care

Harvard Business Review

They’ve organized, scaled, and automated the myriad administrative details involved in such a way as to minimize the barrier to entry and limit the potential for error, miscommunication, or unwarranted variation. On any given day in America, 40% of hospital beds lie empty, their enormous fixed costs weighing heavily on the system.

article thumbnail

Solving the Internet's Congestion Problem

Harvard Business Review

Congestion, rather than raw usage, is the key driver of this phenomenon; given that the Internet Service Provider network is largely a fixed-cost asset. Like any fixed-cost asset, such as the Interstate highway system in the U.S., it is cheap to operate and expensive to upgrade. I've heard arguments for all of the above.

article thumbnail

4 Types of Activist Investors and How to Spot Them

Harvard Business Review

Activists look to see if opponents could be combined to form a more productive single entity, one that can capitalize on economies of scale and monopolize a given sector. However, free cash flow per share remained impressive at both companies, and fixed cost ratios remained somewhat intact.