Startup Thoughts

Monday, December 26, 2005

The economics of online storage

Excellent article by Nik of omnidrive about the cost dynamics of providing any service which involves user's data storage.
Main costs are disk, incoming/outgoing bw.

However, depending on the service and context, these three costs can vary dramatically. Forget gmail. When you have public sharing along with rich media, the costs are very different.

To be sustainable , you must charge the users for extra storage.


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