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thomas n. burg - on social media and its benefits for us, and sometimes gossip.

September 3rd, 2007

I’m doing a lot of research on the [tag-ice]online storage[/tag-ice] market recently. There is a lot going on here. Still no real reliable provider yet - I mean really reliable. What struck was this statement by one of the very successful consumer storage-providers. Box.net’s Aaron states.

If these were our costs for an average free account, we, or anyone who offered it, would be in business for no more than two months. Uncoupling storage from the application makes it impossible to have a practical business when you are paying for the bandwidth. All in all, this is why neither Amazon nor a web services API developer will be competing with Box.net (or google). (Box.net:”Are we competing with Amazon?“)

Strange, there are a lot of competitors that rely completely on Amazon S3, for instance Digitalbucket. If box.net gets it that there must be a lot of magic behind the Digitalbuckets, Elephantdrives and alike. On the other hand we did some internal calculations and S3’s [tag-ice]bandwidth[/tag-ice] is indeed very expensive especially if you head towards sharing features. But then there is S3’s usage of bit-torrent. Hmm an, however, interesting space to watch.

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