Google Inc.’s Virtual Hard Disk Drive (HDD)

[ACE]

Would you do it?

Google Inc.’s rumored plan to offer an online storage system has been called “the virtual Hard Disk Drive (HDD).” However, such a virtual HDD system could mean very real profits for Google, earning a much higher margin than the actual hard disks sold by Seagate Technology LLC and others, iSuppli Corp. believes.

Media reports indicate that Google is set to offer a service that allows users to store files from their hard drives on its servers. Not only could the service provide much-needed storage space for users whose HDDs are clogged with music, video and images, it could also allow subscribers access to their files from any PC, simply by entering their password on the Google site.

Reports indicate Google plans to provide some free storage, with additional space allotments available for a fee. While pricing isn't known, the Google storage service reportedly could be released within a few months.

While such a service would be useful for consumers, it could be very lucrative for Google. “Google’s plan has simple economics: It can make more money in the storage business than the companies that actually make HDDs,” said Krishna Chander, senior analyst, storage systems for iSuppli.

The concept of online virtual storage is not exactly new. Yahoo, Xdrive LLC and others have been offering similar services, typically 5Gbytes of free storage, with more space available for a fee. However, Google could one-up these competing services by offering as much as 50Gbytes of free storage, Chander estimated. Google could generate significant returns from this free service by placing advertisements on the storage-service website.

Chander estimated that about 4.2 million users eventually may employ Google online storage system. Assuming Google collects $50 per user per year in advertisement revenue collected from users of the free version of the system, the revenue potential is about $210 million annually.

On the expense side, Chander estimates that it would cost Google 25 cents per Gigabyte for those 50Gbytes of free storage. Google may have to install storage capacity of about 210,000Tbytes. This will require the purchase of about 210,000 1Tbyte-capacity HDDs, representing a gross expense of about $52.5 million.

“This would represent a good return for Google,” Chander said. “While a typical HDD supplier makes about an 18 percent gross margin for a desktop-PC-class hard drive, Google could command a gross margin of 75 percent. This would give Google more than four times the rate of return compared of the HDD suppliers.” Google’s profits could be significantly higher, depending on its fee structure for storage exceeding 50Tbytes.

Google could also pursue other avenues associated with this free storage capability. For example, users could rent ruggedized PCs with minimal storage at airports, coffee shops and malls—and then access all their personal files from the Google service. This would allow users to reduce the amount of lugging of laptops across cities and during travel.

Google could charge a rental fee of about 5 cents per minute for using the rental PC and accessing the Internet. Such a system could be feasible if Google buys out the telephone booths or kiosks that AT&T and other telcos abandon in 2008 due to lack of profitability.

Google faces some challenges in implementing such a service, including files that lack configuration control and privacy, password and security protection. However, Chander said Google should prove to be a quick learner and will resolve these challenges as time progresses.

[Source]

I think I would.....

[EndUnknown]

I want that.

[Gregory]

Nope, no way. Harddrives are cheap now, and Google wouldn't allow pirated content.

Ask yourself, how much HD space is in use on your harddrive now and minus all the pirated things.

[AquaToad]

i want it..........NOW

[EndUnknown]

Originally Posted by Gregory

Nope, no way. Harddrives are cheap now, and Google wouldn't allow pirated content.

Ask yourself, how much HD space is in use on your harddrive now and minus all the pirated things.

but if they let you put what ever you want on there and don't pull a "no copyrighted content" thing then I will DEFINITELY use this. never can have too many backups.

[Nurta]

Meh, no need for me to go and put my files on some random server I know nothing about when I already have my server set up with an upload script that does everything I need. I might use it some if they have a shell integration or something, but just for non-personal files.

It's not anything new at all, all it is is password based upload script with a good amount of file space. It's less new than that article makes it out to be.

[Gregory]

If they allowed copyrighted content, they would be sued.

Originally Posted by Dark Whole

but if they let you put what ever you want on there and don't pull a "no copyrighted content" thing then I will DEFINITELY use this. never can have too many backups.

[EndUnknown]

Originally Posted by Nurta

Meh, no need for me to go and put my files on some random server I know nothing about when I already have my server set up with an upload script that does everything I need. I might use it some if they have a shell integration or something, but just for non-personal files.

It's not anything new at all, all it is is password based upload script with a good amount of file space. It's less new than that article makes it out to be.

but its GOOGLE so therefore it is new and revolutionary, just like how, even though the iPhones features are not as good as other phones, its revolutionary.


oh, and greg, why would they get sued? the content is not shared, just stored. and google has enough ca$h to lawyer up the ultimate defense and make it allowed.

[Cerepol]

This is how it will probably go down, they will make you click a box for ToS which says no copyrighted material then they don't care

[Wootmasta]

there isn't a site in the world that openly advertisises you to host illegal content on their site.

but people do it anyway and they don't know and wont get rid of it unless it is reported
blame the internet prudes

[Gregory]

I know they are slow but:
http://www.warez-host.info/

[adgloride]

If thousands of people use this service, I can't see them being able to stop all the copyright content. Just look at youtube.

[Dizzy]

Is it anything like adrive? What they've got to offer seems pretty hard to beat.

http://adrive.com/

[Gregory]

That a-drive place dosen't seam to have files accessible by just anyone.... only yourself.

[Dizzy]

It does. I've already downloaded much off of there. ; )
You just need links, like always.

[Gregory]

Sweet.

[Gow616]

I predict quite a few pirates trying this out then getting burned when the RIAA and MPAA knock on the door after looking at the cache of records Google keeps on user access.