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Fun Fact: Google's Revenue is $17,066 Per Server

Mon, 19 Mar 2007 19:52:00 -0400

I read about this on Bert Amijo's blog. 3Tera CEO Vlad Miloushev did the math:

1. Google's infrastructure consists of 500,000 to 1 million servers.

2. Google's Q4, 2006 revenue was $3.2 billion. On an annualized basis, that's $12.8 billion.

If you divide #2 by #1, you'd get $12,800 to $25,600 of revenue per server. If you take the average and divide the amount by 12, you'd end up with $1,422/month in sales for each server. Google spends about 10% of its revenue on operations, which equals $142 per server.

As a point of reference, let's consider HostGator's announcement that it will expand its presence at The Planet. HostGator currently leases 1,700 servers, which are home to 500,000 websites. That's 294 sites per server. If HostGator collected as little as $4.84 from each site owner, it'd generate more revenue per server than Google!

HostGator's cheapest service plan costs $6.95/month, but it allows customers paying $9.95 or more to host multiple sites. Which most - including HostGator's 10,000 resellers - do. So Brent doesn't have Larry and Sergey beat. Yet. But while I was doing the calculations above, I remembered a conversation with Lenkov from SiteKreator. Thanks to some kind of caching magic (which ISP-Planet discusses in this article), Lenkov's software can support up to 30,000 simple websites on a two CPU machine.

Let's say Brent springs for a quad core Clovertown from The Planet, hosts only 15,000 websites, and charges each site owner $1/month. This would put him ahead of Google in terms of both revenue/hosting expense ratio, and sales per server.

ISP-Planet says SiteKreator can be licensed for an "unpublished fee". I'll have to ask Lenkov about that...

HostingCon - Be on My M&A Panel

Mon, 02 Jun 2008 12:10:00 -0500

I am moderating a panel at HostingCon entitled "Flip that Hosting Company" (Wed. July 30 - 4:15 PM). I want to have at least one panel member from our WHIR readers.

So be on my panel. If you think you are up to it, there are just a couple of hoops to jump through.

1 - Requirements: During the last 5 years you should have completed at least 3 acquisitions, your current position is either in senior management, or you are responsible for business development for an operating hosting firm.

2 - How to apply - send me an e-mail that includes:

A - Your Name/Company/Title/Phone and link to your website.

B - Write a couple of paragraphs on what you bring to the table. How you will add value for HostingCon attendees and a snippet of your background.

C - A paragraph regarding a specific point you look at (or reared its ugly head) during an acquisition, and why it was important to your decision making process.

Brevity and succinctness are virtues.

All applications are due on or before by Monday June 10th. BTW I reserve all kinds of rights including not to select anyone.

AND THE WINNER RECEIVES…a free pass to HostingCon.

I can't wait...Tom

More about Tom:

New Commerce Communications

E-Mail Tom Direct

Patent for content management is granted

Wed, 19 Apr 2006 17:28:26 EST
Software solution provider GraphOn have been granted a patent that cover 'Method and
apparatus for providing a dynamically-updating pay-for-service web site' by the USPTO.
From reading parts of the patent application it looks like this patent covers something
very similar to a commercial content management system (CMS).

PHP Tutorial: A PHP Introduction

Tue, 20 May 2008 12:35:42 +0000
A very basic introduction to PHP. It wouldn't be a beginner turorial with a Hello World, right?


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