Friday, June 18, 2004

On the Economics of GMail

A commenter by the name Ian Montgomerie says some very insightful things on Brad DeLong's Webjournal:

On another note, though, don't underestimate the cheapness of Google's storage. It's obviously very cheap relative to the competition, but in absolute terms they still can't afford to give everyone a gigabyte of email storage now. They know darn well that most people will use maybe 10% of that any time soon, and mostly in text (they would be stupid not to be compressing that text in the background down to a level where the typical GMail user's 100 megs or less of email are 10 megs or less of actual hard disc space, so a typical modern hard disc could serve 10,000 users). EVENTUALLY people will accumulate enough email, especially with attachments, so that many are actually using the bulk of their space. But that will take years by which time hard discs will be much cheaper. Google can reliably bet that from this point onward, hard disc prices will probably drop at least as fast as email volume rises.
Indeed, the speed at which storage costs per GB continues to drop is truly astounding to behold: Hitachi and Seagate both already have 400GB (i.e, 0.4 Terabyte) hard drives for sale, and this is for the low-end consumer market.

8 Comments:

Anonymous Anonymous said...

Dear Sir,
Sometimes A Questions Arrives in my Mind about Free Email Servervice Provider Like as Gmail and yahoo! about Their Big email Space Offer.
I have confused about gmail, Yahoo and also another free email service, How possible to give 1GB or More email space for per user!! Is They are Use any Virtual Drive or any other Technology ? Otherwise Which Technology they are Using ? Really I Finding this questions for myself. If anybody give me clear concept about more email space system or technology
then I will very very Happy.

Can Anybody Give my Answer ???

Thanks
Salauddin Salim

October 23, 2005 at 8:13 AM  
Anonymous Anonymous said...

Dear Sir,
Sometimes A Questions Arrives in my Mind about Free Email Servervice Provider Like as Gmail and yahoo! about Their Big email Space Offer.
I have confused about gmail, Yahoo and also another free email service, How possible to give 1GB or More email space for per user!! Is They are Use any Virtual Drive or any other Technology ? Otherwise Which Technology they are Using ? Really I Finding this questions for myself. If anybody give me clear concept about more email space system or technology
then I will very very Happy.

Can Anybody Give my Answer ???

Thanks
Salauddin Salim
salauddinsalim@yahoo.com

October 23, 2005 at 8:15 AM  
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