Its a small small world :)

Wow interesting times ahead

As a VOD software vendor I have my own matrix that calculates the cost of delivering an hour long SD movie. I calculates storage, bandwidth, service etc etc.

8 years ago when i got into this business 1GB of managed storage was $10/GB, today its less then 25 cents a GB and these days 1GB of managed bandwidth is around 10 cents (yes i know you can get 2c/GB but note the word 'managed')

The opportunity I see is that a lot of adult companies don't want to have their own IT departments, its just way too expensive these days and this allows hosting companies to sell advance services on top of their regular offering and become end to end providers.

Jay

Well said Jay!

This is exactly why WEBAIR has invested millions of dollars into our dark fiber ring infrastructure & into massive amounts of data center space. Our network is now connected to every pop in NYC and beyond (We currently have access to POPs that contain 300-400 providers). Data center space is becoming a commodity. Owning our own facility has given us a HUGE advantage over competitors, at least the ones that colo with other companies. The arrangements we have on power protect us from fluctuating costs. Additionally, we are very close to securing an additional 50K sq feet in the heart of NYC which is now offering HUGE INCENTIVES to tech companies who are 'power savvy'. Our NEW Long Island facility falls under "The Empire Zone" which offers discounted power and employee incentives for opening in designated areas. All variables that you should look into when choosing a host to partner with.

With regards to hardware costs we have spent well over 2 million in the past 2 years investing heavily into our New Managed Storage Hosting Solutions, which allows us to pass on large savings hardware wise to our clients. We have spent a great deal of time focusing on our energy efficiency by using servers that use less power, virtualization, cloud storage. The same thought process goes into how we operate the UPSes and HVACs in our data centers. Working closing with NYSERDA (New York State Energy Research and Development Authority) has helped us design and subsidize more efficient systems and the help lower the cost of building state of the art facilities.

As for $1 per mbps? Who knows for sure. The costs for bandwidth are already very low and the more you push the more you save! :2 cents:

AWESOME THREAD! It's great to see webmasters taking interest in the details!

:)

You and me both!

I am pretty sure that you really did not mean to say that, right Mike? There is no way that DC space is becoming a commodity. There are VAST differences in data centers and they are not going down in price so there is no way that they are becoming commoditized. Being a commodity assumes that they are all the same and that the only things separating one from the other is price....and that's just not the case. I assume that you just got so excited about all the cool things going on for you guys that it just came out wrong ;)

Good to hear about your growth!! Keep it up!!


--T

com·mod·i·ty (kə-mŏd'ĭ-tē)
n. pl. com·mod·i·ties

1. Something useful that can be turned to commercial or other advantage: "Left-handed, power-hitting third basemen are a rare commodity in the big leagues" (Steve Guiremand).
2. An article of trade or commerce, especially an agricultural or mining product that can be processed and resold.

It was used more as a figure of speech T. Apologies for any confusion i may have caused you...

Good to see that you read my posts with such care and attention to detail!! :winkwink:

Love ya man!

Hey I was just looking out for ya, Mike....with all those millions of dollars you keep spending I would hate for you to cheapen it by calling it a commodity. You really should be proud of what you have built, my friend!!!


--T

Perhaps Mike could set aside a percentage of those millions he's spending to take some "tactful ways to promote your company in hosting threads" lessons from Tony and Jim.

Of course, two big paragraphs with bold highlighted print and links to talk your company up, followed by a one line "shucks I dunno" answer to the question the thread asked might the way to go.

What do I know? I'm just a webmaster.

Now that's an interesting question.

we will see 50 cents per mbit soon :winkwink: