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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
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