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October 22, 2005
 

Maybe not so Hard to Make a Buck When You Are Storing Everyone's Stuff for Free

I was reading Cringely's post "Energy Crisis: It's Hard to Make a Buck When You Are Storing Everyone's Stuff for Free" that discusses infrastructure requirements for storing 2GB of information for every U.S. internet user.

Using his numbers it would probably cost under $50 million a year to run such a facility(a bit of license with his numbers perhaps-- he quotes $5 million electricity costs, $25 million hard drive costs  -- I added $20 million of other "unspecified costs" without a lot of research of what they may be). Neither his or my estimate accounts for Kryder's Law. The hard drive costs should be one time but for ease of discussion assume the cost is every year.

If you imagine that the users could easily generate $1 of advertising revenue a year, that would generate $202 million revenue (using Cringely's 202 million U.S. internet user figures). You would make a very tidy profit.

Even if the "unspecified cost" estimate is 50% of what it should be and the $1 advertising revenue per user is twice what could be realized there is still potentially substantial profit to be had.

So maybe it is not to hard to make a buck (or 10's of millions).

6:28:28 PM        comment []   

radio.weblogs.com safe?

At the time of the weblogs.com sale, I wondered what effect it would have on Radio Userland weblogs as they are housed at radio.weblogs.com.

The question was asked and answered in the Radio Userland support discussion forums. I wonder why I find the answer somewhat unsatisfying?

At this time (my emphasis), there's no impact to Radio users due to the transfer of the domain name.

Why do I get the feeling that there is another shoe to drop in this situation? I guess Robert's comment and move to wordpress.com should have been a clue.

10:42:38 AM        comment []   


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