I see Virgin Media has increased its broadband pricing. This is almost certainly because people are using more and more data – especially seeing as the company has been giving its customers free bandwidth upgrades.  Although bandwidth costs come down with time these reductions are being outpaced by growth in usage. Even if people are give data bundles (or unlimited use even) ISPs will assume an average overall level of usage in their costings and if this average is on the up the prices have to rise.

It’s the same in the data centre space where demand currently outstrips supply. You would think that Moore’s Law would sort it out but the same rule applies here as for connectivity – after all if people are using more and more data then it is natural that the required server and  storage space grows in line with this.