OK, so we all persume that because of advances in technology are going to push down the prices of such things as web hosting, servers and even desktop computers. However is this a reality?

Most probably not, energy prices are set to increase as the fuels are used. This will in fact increase the cost of web hosting and running servers dramatically. Even if they are more efficient.

Also although what you get for your money will infact increase, you will eventually start having to pay more for semi conducters because of the energy used to produce them.

Think about it for a while, and post back.

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-Rob Putt - Blog!
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Good point Rob. There are many things we need to take into consideration when trying to estimate the future cost of technology and technological services.

The cost of energy, energy developments (such as more fuel-efficient power plants), government policy, COMPETITION, and consumer demand are four major factors. But I would have to say that competition and consumer demand is at the top of the list.

If company-X were producing a product, and were the only company producing it with a high demand, company-X can pretty much put any price tag they wanted to on it. And I do mean, ANY price tag (the pharmaceutical industry is a good example of this).

However, say company-Y entered the market and began producing the same product, but at half the cost (with all things being equal). What do you suppose will happen to the sales of company-X? They would drop, because consumers can now purchase the same product from company-Y at half cost of company-X.

A very good example of where the technology economy has been largely is with Japan and China electronics imports. With this example, employment wage differences between two countries dramatically affect consumer prices, unless government gets involved and taxes imports to level out the playing field. Then the consumer will have to decide, not based upon price, but upon quality.

I had better stop here for now, as this topic can actually turn into a whole new web forum.

Good question, though, and I would like to see others' responses. Thanks.