Thu 7 Feb 2008
Low Percentage Mathematics
Posted at 12:08 +1100
Mathematics, the old "queen of sciences", kind of runs on accuracy. It's also eminently logical and not really that hard. So permit me to channel John Allen Paulos for a moment...
It was with a mix of horror and irony that I read David M Peterson's post on O'Reilly's XML blog today: "AWS Drops SQS Pricing By 10,000%?" (the irony comes in the first sentence of the post.)
Oh, dear. Let's see. Suppose the original cost was $1. So 10,000% of that is $100. So reducing the cost by 10,000% would mean that Amazon were now paying $99 for every $1 they were previously charging. Doesn't sounds like a particularly profitable business model. Probably not worth relying on that service to be around very long. Wait ... you mean, that's not what they're doing? Oh dear, it's Marketing Maths at work, again. :-(
So why not be accurate? They've reduced the price for 10,000 requests from USD 1 to USD 0.01. That's a 99% reduction. The new value is now 1% of the old value. Easy.
Ratios aren't symmetrical: reducing by half and then increasing by half leaves you with less than the original amount. That's mathematics. Trying to change it because you prefer symmetry gets you a choice of free admittance to the Flat Earth Society AGM or a poster about the geocentric model of the universe. What it doesn't get you is a passing grade.
Besides, the symmetry already exists here: we use the same starting point (the original quantity) always. If something increases from $1 to $2, you don't say it increased by 50%. Similarly, it's illogical to say that something decreasing from $1 to $0.50 has been reduced by 100%. However, this seems to be a common marketing blunder amongst people wanting to show how extreme something is.
Yeah, David M Peterson doesn't deserve this grief. He having a Zippy the Pinhead ("somebody pinch me!") moment and just made a quick note on a blog. I'll admit that I'm taking a slightly cheap shot just to have a rant. Still, it's the third time in the past day or so that I've seen this nonsense and this was the only case with a URL attached. And it's my blog. Just because your government uses this kind of arithmetic to create fiscal policy, doesn't mean you're allowed to use it in computer science.
Oh, and, in passing... Amazon Web Service's price change is a pretty sweet deal.
Topics: mathematics, venting
