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Friday, May 08, 2009

Cloud Computing and sand: Google vs Microsoft

Robin Harris: An independent study finds that on-site Microsoft apps cost 20x in capital dollars and 5x-6x more on a three-year TCO basis than Google Apps. How can Microsoft compete? Google will, of course, blow their huge cost advantage.

Model assumptions

Daily volume of new email: 100 MB

Local copy of email: None

Archiving: None

Cost per hour of downtime: $500

Cost per GB of data loss: $5,000

Network outage: Lose email access

Office apps assumptions:

Daily volume of new documents: 50 MB

Local copies of documents: None

Cost per hour of downtime: $250

Cost per GB of data loss: $30,000

Network outage: No application access more

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