Renting Computers & Servers May Accelerate Development and Innovation

Many corporations, small and large alike are not buying hardware anymore; they are renting from established computer companies and entities operating vast networks of servers. You probably are familiar with Amazon, but did you know in addition to selling books, in March of 2006 they began renting basic data storage and since have gone into services like computing and databases. As of now Amazon charges 15 cents for a gigabyte of storage and 10 cents an hour for a shared server, services that customers believe to be 90% cheaper than rental alternatives from other computer/hosting companies.  Although it is not certain because Amazon divulges almost no information about its costs or margins in Web Services; assuming non stop usage, hardware lasting two years, and average electricity costs according to Forbes.com Amazon has a gross margin of 45% more revenue in Web Services than what it makes selling books.  So what kind of company are they really?  

As soon as you drive a new car off the lot, that new car’s value depreciates.  People that like having a new car every few years have always enjoyed leasing.  Now the truth is any car that goes and stops can take you from point A to point B, but that isn’t the same with technology.  Try running a Dot TV Channel Network and streaming video from a server plugged in and hidden under a desk; your customers will be disappointed.  U4H Core’s Dedicated Hosting Solutions have been engineered to “host Internet Television Channels.”  For today’s businesses to succeed they must utilize, but not necessarily “purchase” current technology.  Sony, Alienware, and Dell all have competitive leasing packages capable of assisting the smallest and largest of businesses. At the end of your lease, when your computer is tired and old (3 human years = 99 computer years) it can retire into the abyss.  If a hard drive crashes, or your computer malfunctions during the lease, you don’t have to worry about what to do; it will be repaired or replaced.

More than saving on hardware purchases, companies like relieving their technology staffs of maintenance time consuming chores. As you already know when you own and maintain computers and servers the warrantees run out just as components start to crash and fail; fixing computers and servers can become a costly, inefficient, and timely endeavor.  Additionally, even when under warrantee many computer companies require you to send your malfunctioning machine to them to diagnose and fix; if your corporation is hosts its website, network, or Dot TV on their own server, and the server fails—this downtime will cost your company time, money, and possibly result in a loss of business.  If your company is paying someone to host your site, and that company’s agreement says 99.8% uptime—something breaks it is their headache to remedy, and remedy immediately at no additional costs to you.

What about software?  Well, the death of the traditional computer and software as it is commonly understood is on the horizon.  Cell phones, hand-held devices, and even game systems such as Nintendo’s Wii are capable of searching the World Wide Web. To date when people and corporations purchase computers they want to know primarily “how fast is it” and “how much memory does it have?” These are important questions with good reason because they want their computer to perform and be capable of loading and download virtually anything.  As more and more web sites and Dot TV Channels become dynamic Content Management Systems (i.e. pieces of software) that are compatible across browsers (Internet Explorer, Firefox, etc.), compatible across technological devices (pc, Mac, mobile phone), and support multiple languages, any machine capable of accessing the Web will be considered a computer.  For sometime now Google has offered a suite of FREE online applications akin to Office; included in these applications are programs allowing you to create and share documents, organize and schedule events with a calendar, edit photos, and build 3D models.  Just as you can save a draft in your e-mail account and not on your computer, in the very near future people will regularly be saving to the “Internet.”  According to Forbes.com, Microsoft is expected to offer its own version of “cloud computing” aimed at big businesses and Yahoo is expected to move into this business later in the year; perhaps these moves will rival the cloud computing services of Google.

In this ever-changing technological age renting computers & servers may accelerate Development and Innovation.  For World Class Internet Products, services, and hosting solutions geared towards individuals and small businesses please explore U4H’s Registrar.  For corporate Global Web Presence and Dot TV Channel Development please explore Unity 4 Humanity’s Consulting Home specializing in Content Management Systems that support multiple languages and are compatible across technological devices and browsers as well as implementing language-like URL’s and The Lanagage of Domain Names.