Storage Effect

Amazon’s a bookstore, Google’s a library

April 28, 2008 · 2 Comments

There’s more than one way to seed the storage clouds for profit

Storagezilla doesn’t think Amazon’s got a winner with their cloud storage business. 

Label me a Cloud Believer.  The long-term money-making details may still be unclear for Amazon, but others are raking in the profits on cloud storage.  Take Google, for instance.

Google’s not a thriving cloud storage company?  Au contrair! 

Google has nailed the Cloud concept with a Library model.  I “check out” my data when I need directions to a hip restaurant or insight on the curative properties of a green-lipped mussel.  Meanwhile, Google’s bookshelves keep expanding. Very profitably, I might add.

Maybe that’s what happens when you start out by selling books…everything looks like a book store.

I’m sure Jeff Brazos and team will get there with time.  And they won’t be the only ones!

Who out there is paying someone to keep their information?  What do you like about your service?  What needs to be fixed?

Categories: Datacenter · Digital Home · Industry trends · Random
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2 responses so far ↓

  • Adam // April 30, 2008 at 12:55 am

    I’m not sure I understand the analogy fully.

    Google makes money of advertisements - that’s its profit model. So are you saying that because they can charge businesses for advertising that they will never have to charge customers of their cloud services? Maybe, but they will definitely be constrained in some shape or form in relation to other cloud offerings that are pay-per-usage. We can see that in the difference in flexibility and power between EC2/S3/SQS/etc… and AppEngine. Google’s growth is going to slow as the market becomes more competitive for online advertising, unless they can start tapping into new markets moving online or untapped online businesses. But if they don’t tap another revenue stream other than ads that turns a profit in the next couple years, the numbers are going to start looking less and less attractive.

  • Pete Steege // April 30, 2008 at 8:04 am

    I think Google’s successful ad model will subsidize their other businesses. They may choose to charge for a pure storage cloud offering, but they won’t have to get the return on what they charge that Amazon’s current model demands.

    Agreed - the ad thing won’t always be so profitable for them.

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