How long before bandwidth is less than $1/mbps

It is happening every day, my friend....every day.


--T

Would be better if it got much more expensive instead.

Cost of cpu power, storage, etc is going down though, so each year more and more bandwidth can be pushed from the same data center... now a days 1gbit can be pushed from a single server, wasn't long ago when you needed pretty decent server to do 100mbit, or no?

The japanese are doing incredible things with bandwidth and data transfer. It will drop to 0.10/mbps one day

Your Ciena rep already spilled the beans to us last week when they were trying to sell us on their dwdm gear ;-)

Yeah he is going to raise your personal taxes by 4 points, probably in 2011, and at some point they'll fuck with social security taxes also, but that's only going to affect your employees making over 200K, and I'm going to guess that you can count those employees on one hand....so the overall impact on your biz will be negligible IMHO.

Anyways, back on point, that's two years from now so I'm guessing you don't see bandwidth in the sub $1/mbit range before then?

Yes, you are correct that hardware costs are going down but as they go down the associated costs are going up. For example, in the same 2U of space we can now store more content and push more bandwidth than ever before. HOWEVER, the power supplies and CPUs are taking more power and producing more heat than ever before to achieve that goal. So now a DC needs bigger generators, bigger switch gear, bigger UPS, bigger HVAC, bigger everything. At the same time power costs themselves are going up. Just a few years ago I was paying $.04/kwh for power...now I pay almost $.09....power costs have more than doubled! In addition, Obama is proposing higher taxes on power consumption especially those power companies that mainly produce power from Coal so we are expecting those costs to go up dramatically by 2010.

--T

Hard to keep a secret in this biz, huh? ;)


--T

I hope you are right about the taxes...I have always felt that any tax increases that he was going to do will happen this year and next because after that he starts campaigning again.

As for your question, I dont see the prices going to LESS than $1 in the next two years....but I do see them getting there.


--T

Good point about the electricity tax earlier, I wouldn't have thought of that.

Although lucky for you, it looks like the cap and trade plan is DOA, he's gotta save his capital for health care.

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!

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

You and me both!