Magnitude summary: storage ~85% / 7×; compute ~20×; bandwidth ~240×; plus the capex→opex structural shift
Created 2026-06-21
Summary
Magnitude summary across the infrastructure driver:
- Storage: $0.15 → ~$0.02/GB = ~85% cut, ~6–7× more data for the same dollar (S3 storage cost fell ~85% from launch — ~7× more data for the same dollar; independently corroborated); archival (Glacier Deep) ~150× cheaper than 2006 standard storage.
- Compute: $0.10 → $0.005/instance-hour entry = ~20× cheaper at the floor (EC2 entry price fell from $0.10 to ~$0.005/instance-hour by 2018 — ~20× cheaper at the floor (Jeff Barr, HashiConf)).
- Bandwidth: $1,200 → ~$5/Mbps (1998–2010) = ~240× on transit (Internet transit collapsed from $1,200/Mbps (1998) to ~$5/Mbps (2010) — ~240× per DrPeering/Norton series); ongoing decline since.
- Structural: capex (buy + $50–$1,400/mo + $55K–$96K sysadmin) → opex (single/double-digit dollars per month, administration included) — see The structural shift: capex (server + sysadmin) → opex (managed service, administration included).
Source: Synthesis of the magnitude entries.
Confidence: Verified for storage/compute; single-source for bandwidth.
Why this matters for Candid: The one-paragraph "how much did the floor fall" answer for client conversations and article ledes.
Related entries
Depends on
- reference S3 storage cost fell ~85% from launch — ~7× more data for the same dollar; independently corroborated
- reference EC2 entry price fell from $0.10 to ~$0.005/instance-hour by 2018 — ~20× cheaper at the floor (Jeff Barr, HashiConf)
- reference Internet transit collapsed from $1,200/Mbps (1998) to ~$5/Mbps (2010) — ~240× per DrPeering/Norton series
- reference The structural shift: capex (server + sysadmin) → opex (managed service, administration included)
Referenced by (3)
- reference Research brief: the falling cost floor of "real" web functionality for SMBs (June 2026) relates-to
- rule R1 — Anchor the falling-cost case on the decade 2004–2014 (infrastructure + parts + data); AI-assisted coding is NOT the spine depends-on
- reference The structural shift: capex (server + sysadmin) → opex (managed service, administration included) relates-to