What are the benefits of data center consolidation for cloud providers?
Cloud providers should consolidate data centers for optimization reasons. Optimizations can range from basic things, such as lower electricity costs, to the benefits of economies of scale. After all, in the absence of very specialized offerings, cloud providers must stay focused on reducing the cost of operations. Of course, consolidation should not be taken to the extreme by having only two data centers. Depending on their data center footprints, cloud providers must pay attention to latency of service to ensure a good experience for customers in all geographical areas they serve.
This was first published in February 2013