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Web Storage Prices - Rip off?
QUESTION:It seems common to charge $10 per month for an extra 10 meg of web
storage.
If the price of an 80gig hard drive is around $500, then the cost to the
ISP of 10meg of storage space is around 6 cents.
$120 per year for 6cents of storage space is a nice profit.
One $500 hard drive could make $960,000 per year. or something like a
twenty thousand percent profit.
Have I missed something here in the maths? It seems crazy.
ANSWER: you probably haven't missed anything in the maths but the above is not an
accurate scenario
it's akin to me handing you some sand and a magnifying glass and saying
"now the cost of this is close to zero, look at the amazing proft apple
makes by selling you a `computer' made up of these parts"
have you ever tried to put a 80G hard drive in the middle of machine room
and see how much access you can sell to it ? there's a lot more to this
than just a hard drive.
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