Silicon Economics

The use of IT technologies to provide economies within business

Silicon economics is the use of new IT technologies, hence the term 'silicon', as a method of reducing business costs.

A solution that can deliver in this way is may be considered a disruptive technology as it may require change to operational processes or technolgy implementation to be effective.

For example, the use of server vitualization has enabled significant cost reduction in the operational costs associated with the providing IT services, such as electricity, floorspace, cooling and maintenance. However, a level of disruption is caused as virtualised servers require a different approach to their management, usage, support and approach to business continuity.

Other examples include Solid State Electronics and High Efficiency Servers as they enable high economies of scale to be achieved over traditional existing technology deployments.