The Cloud in the Supply Chain, the Supply Chain in the Cloud

I’ve written in the past about how the cloud is changing the way that supply chain organizations work.  (see here and here).  It’s also interesting to consider how the traditional supply chain issues affect the way that the cloud itself is organized.  A recent post on the Amazon Web Services blog implicitly discusses, for instance, the classic trade-off between distribution center centralization and lead times (the time it takes for a product to be delivered):

“Developers in Japan have (said) that latency [basically, travel-time] and in-country data storage are of great importance to them,” Amazon Web Services said on [its] blog. “Long story short, we’ve just opened up an AWS Region in Japan, Tokyo to be precise.” [brackets mine; quote pulled from this discussion at NetworkWorld]

Specifically, the article is about the movement of data storage capacity to sites closer to customers.  That shouldn’t be surprising but it might remind casual observers (and hoity-toity theoreticians) about the relevance of old operational logistics paradigms to the new cloud.

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