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Home/Magazine Archive/December 1987 (Vol. 30, No. 12)/Economies of scale in computing: Grosch's law revisited/Abstract

Economies of scale in computing: Grosch's law revisited

By Haim Mendelson
Communications of the ACM, December 1987, Vol. 30 No. 12, Pages 1066-1072
10.1145/33447.33452
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Does Grosch's law apply in the 1980s? A look at the price and performance of computer systems concludes that there are no economies of scale in computing. Computer technology is characterized by constant returns to scale, a fact that has important implications on future centralization/decentralization decisions.

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