Expanding Profit Margin Through Cloud and Inflation

There’s a neat affect with ad revenues and cloud computing. As long as the web remains competitive in ads and demand doesn’t weaken because of ads in apps instead of ads in web pages, then ads will get more expensive (generating more revenue for website owners) as inflation continues over the years. There will be more dollars chasing eyeballs.

At the same time cloud computing will decrease in price over the years like it has been decreasing in years prior. It’s the opposite cycle of running your own computers which make them more expensive to maintain every year when you figure in the comparative cost of internet access costs rising yearly through Time Warner and power costs generally rising every year (not to mention time and skill costs of basic network and server administration).

What brought this to my attention is every several months Azure (TapCollage.com’s cloud provider) increases basic hardware performance and reduces costs at the same time by 12% to 28% each price drop. The value provided by the cloud dramatically increases year over year without me as a website owner doing anything. The cloud is working for me.

It results in an expanding profit margin simply by choosing the cloud platform and letting two patterns that work for me grow year over year. Those patterns are decreasing costs of the cloud at the same time as inflation of ad revenue.

This also works for other revenue stream types as well, not just ads.

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