Tag Archives: Om Malik

Amazon S3 moves to volume pricing model

Under 50 terabytes? You’re a light user

Power companies charge by the kilowatt-hour; Amazon S3 charges by the GB-month.  Yet another parallel that points to the “utility”ization of storage in the cloud. 

The newest news at Amazon S3 is the addition of a modest volume discount for the really big storers. If you have less than 50 terabytes, you’re a light user and pay full price.  Go figure! 

Om Malik sees the pricing change as a boon for start ups.  He’s right, too, about their amazingly diverse customer base.

Another nugget from Amazon’s S3 post: 70,000 customer objects now stored at the site are touched (stored, retrieved or deleted) per second.  That may sound like a lot, but in any one day, 80% of the 29 billion objects lie undisturbed.  And chances are that the same objects get moved around repeatedly, while a core set (50% ?) rest in peace for long periods.

Amazon S3 may highlight their processing capabilities, but it’s the storage function that pays the bills.


SlotMusic reminiscent of BluRay

Electronic music distribution might make this format a tough sell

Om Malik‘s not sure there’s a spot available in the market for a physical replacement for CDs, as people want fewer thingies to collect and manage.  We’ll see.  Is the market in other geographic regions?

The music industry is irreversibly racing down a virtual path.  For the same reasons, the hype over BluRay vs. HD DVD was vastly overblown, because movies are moving to electronic distribution.

HP buying EDS – is it all about The Cloud?

EDS differentiates HP more than you might think

Could Om Malik be on to something?  Unlike other analysts looking at HP’s pending acquisition of EDS as a me-too consultancy move – similar to IBM acquiring Price Waterhouse Cooper a few years back – he sees HP shooting for the clouds. 

His rationale: EDS’ clear strengths in outsourcing, plus other recent HP acquisitions all pointing to building out a global data center infrastructure. 

This would be a great play for them to put their comprehensive server and storage system portfolio to work in-house. 

A third way for internet infrastructure

The future of the internet infrastructue is not pizza boxes or Big Iron

Om Malik poses a question: Will the inefficiency of “pizza box” servers push the internet infrastructure back to Big Iron? 

No way. 

What we’re seeing is the creation of a new market, with unique requirements.  What’s needed is Cheap Scale – thousands of servers, scalable at the drop of a hat.  And tons of storage.  

I had a great conversation with Stephen DiFranco at AMD on this exciting space just yesterday.  He sees a classic new market dynamic, where custom solutions have been developed in-house by web hosting firms.  Their technology is their ‘special sauce’, but as the industry matures and grows, the solutions mature and standardize as well.  

Vendor solutions are already going beyond the pizza box.  Verari Systems and Rackable Systems have been leaders here, but the solutions are just beginning to evolve.