Monday, June 12, 2006

The Economics (and Growth) of App Hosting

Where is the growth for ISPs? In hosting and managed services. The Biz Journal reports on a "San Francisco Internet service provider [that] expects to increase its $10 million revenue by as much as 60 percent this year. The company is leasing new space to house its ever-expanding fleet of servers in addition to boosting its workforce, which will likely swell to 55 from 45 by the end of the year. ... -- the company owns and powers 3,000 servers -- ServePath has much higher overhead than spends a "shocking" amount of money on its monthly electricity bill, roughly $52,000, or 30 percent more than the company spends on rent." Nice profile.

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