The cost is low due to economies of scale. Running 1 large data center for 10,000 customers is cheaper due to power density and cooling considerations. Also you might be interested to know the cloud companies largely make their own computers and network gear, and Google writes all its own software so has no licensing costs for internal software. Additionally they are the largest consumer of almost everything compute related from network chips to ram to SFPs and get dedp bulk discounts from basically everyone. Plus tax incentives for their data centers because local politicians love to rub elbows with silicon valley, and you have an insurmountable barrier to entry. Pretty slick. Source is me I worked for Google for a long time and I still am doing penance for my sins.
The cost is low due to economies of scale. Running 1 large data center for 10,000 customers is cheaper due to power density and cooling considerations. Also you might be interested to know the cloud companies largely make their own computers and network gear, and Google writes all its own software so has no licensing costs for internal software. Additionally they are the largest consumer of almost everything compute related from network chips to ram to SFPs and get dedp bulk discounts from basically everyone. Plus tax incentives for their data centers because local politicians love to rub elbows with silicon valley, and you have an insurmountable barrier to entry. Pretty slick. Source is me I worked for Google for a long time and I still am doing penance for my sins.