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Monday, May 12, 2008

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Questions for web hosting talk

Fun Fact: Google's Revenue is $17,066 Per Server

Mon, 19 Mar 2007 19:52:00 -0400

I read about this on Bert Amijo's blog. 3Tera CEO Vlad Miloushev did the math:

1. Google's infrastructure consists of 500,000 to 1 million servers.



2. Google's Q4, 2006 revenue was $3.2 billion. On an annualized basis, that's $12.8 billion.



If you divide #2 by #1, you'd get $12,800 to $25,600 of revenue per server. If you take the average and divide the amount by 12, you'd end up with $1,422/month in sales for each server. Google spends about 10% of its revenue on operations, which equals $142 per server.



As a point of reference, let's consider HostGator's announcement that it will expand its presence at The Planet. HostGator currently leases 1,700 servers, which are home to 500,000 websites. That's 294 sites per server. If HostGator collected as little as $4.84 from each site owner, it'd generate more revenue per server than Google!



HostGator's cheapest service plan costs $6.95/month, but it allows customers paying $9.95 or more to host multiple sites. Which most - including HostGator's 10,000 resellers - do. So Brent doesn't have Larry and Sergey beat. Yet. But while I was doing the calculations above, I remembered a conversation with Lenkov from SiteKreator. Thanks to some kind of caching magic (which ISP-Planet discusses in this article), Lenkov's software can support up to 30,000 simple websites on a two CPU machine.



Let's say Brent springs for a quad core Clovertown from The Planet, hosts only 15,000 websites, and charges each site owner $1/month. This would put him ahead of Google in terms of both revenue/hosting expense ratio, and sales per server.



ISP-Planet says SiteKreator can be licensed for an "unpublished fee". I'll have to ask Lenkov about that...





Wouldn't It Be Great If There Were a ModernBill/StatCounter Mashup?

Mon, 19 Mar 2007 19:57:00 -0400

Over the past decade, I've bought and sold many millions worth of online ads. When I ran ISPcheck, I had no real answer for prospective advertisers who wanted to know what results my customers were able to achieve. And when I became responsible for RackShack/EV1's ad buys, I found that there was no easy way to measure ROI.



All I wanted to know at the time was how many visitors from TopHosts versus TheWHIR signed up. But as I've subsequently learned from Ted Smith at Peer 1, I should have been tracking customers throughout their lifecycle. If my cost per sale from Site A is 20% less than Site B, but the average account gets canceled 50% sooner, B would be a better long term investment.



A couple of weeks ago I convinced Ben Gabler at HostNine to install StatCounter, the better to look up new customers and find out where they came from, and which parts of HostNine's website they visited before deciding to sign up. (I've also used Clicktracks and Google Analytics, which provide aggregated data on visitor behavior, but don't allow you to drill down to each visitor's click path.) It just occur to me that it'd be very cool if this functionality were built into ModernBill.



Imagine being able to generate sales reports that tabulate order amounts against referring sources? Or pinpoint content on your site that's most-viewed by your most profitable new customers? Better yet, what if you could instantly compute the lifetime ROI from those $20 Google Adwords bids? Wouldn't you like to know if customers who clicked on your "cPanel hosting" ad stick around 3x longer than those who came through "cheap hosting"?



HostNine already gives all of its resellers free ModernBill licenses, and being able to automate signup/provisioning is awesome. But what if every $19.95 hosting plan came with a business intelligence system that delivers up-to-the-minute knowledge on what website copy and ad venues work? Wouldn't that be something?



AND, what if ModernBill could collect and publish aggregate, industry-wide data on how profitable TopHost-referred customers are, relative to those who came through TheWHIR? Having been on both sides of the table, I think that would really help both ad salespeople and media buyers.





For more information about The Planet, please visit: www.theplanet.com.

Trust Level Control: Showing Customers Some TLC

Mon, 03 Jan 2005 00:00:00 EST
The hard truth about Service Level Agreements is that many service providers offer them with little or no consideration of whether their provisions can be met. Companies serious about establishing customer trust need to deliver on their promises.




Today`s suggestion:




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