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Sun, 03 Jun 2007 04:29:32 +0000
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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ISP-Planet says SiteKreator can be licensed for an "unpublished fee".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...

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Web Hosting Mergers and Acquisitions - February 2008

Mon, 17 Mar 2008 11:51:00 -0400

Laguna Niguel, CA - Alentus Corporation acquired John Macleod’s AO Technologies’ Columbus Ohio Data Center. It is rumored that Alentus is picking up a company across the pond. AO provides high-end dedicated and streaming media services

Leeds, UK - Masternaut Three X, acquired FibreCity for GBP 6 million ($12 million USD). Deal added 25,000 sq/ft data center. The acquisition of FibreCity enables Masternaut Three X to provide more extended hosted back-office solutions.

Dallas, TX - Affiliated Computer Services, Inc. (NYSE: ACS)announced an agreement to acquire sds business services GmbH, a Germany-based provider of data center, infrastructure services, and application-related solutions from Waterland Private Equity Investments. ACS will pay approximately $67 million (euro 46 million), including the assumption of liabilities, to purchase sds. The acquisition is expected to close in March 2008 following regulatory approval.

Charlotte, NC - TITAN Technology Partners, a provider of hosted and managed industry solutions, acquired Singapore based ESP Consulting. ESP operations is and managed services provider focused on delivering SAP solutions.

Belfast, Ireland - IUTV Media plc today acquired of Tibus, a leading Ireland web development company from Anderson Spratt Group Holdings for GBP 5 million ($10 million USD).

Chevy Chase, MD - Opus8 Inc. affiliate, Clear Day Acquisition Corp., has acquired a controlling interest in Lore Internet Systems. Terms of the transaction were not disclosed. Lore services includes, managed datacenter hosting and co-location. The acquisition has approximately doubled Pro Net's size and it is now providing shared and dedicated hosting for over 100,000 domains.

Sao Paulo, Brazil - Universo Online S.A. (UOL) acquired the "clients" of web hosting company Digiweb UOL is now the third-largest provider of web-hosting services company in Brazil. See my March 6, 2008 blog for additional information and comment.

Rochester, NY - Layer 8 acquired the Web hosting and information technology support services branch of DigiNex. RACD

Obviously not all inclusive - but from the NCC files.

More about Tom:

New Commerce Communications

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