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They're generating profits at a rate of $200 Million per day [sic]. It's fair to say they make enough to pay for the costs of almost anything, including this. Y

by redler 12y ago

They're generating profits at a rate of $200 Million per day [sic]. It's fair to say they make enough to pay for the costs of almost anything, including this. You've identified the one requirement they can in fact satisfy; the hard part is... everything else. Edit: Clarity

bobajeff 12y ago
You may be right. Assuming you're right about their profits, that's 18B per quarter. Operating cost have been said to be around 5B per quarter for Google and 1.25B per quarter for Bing.
- abalone 12y ago
  Source please? Bear in mind they're already running their own competitive map service for exactly the same reasons I say they want to run their own web search. And that's probably not cheap either.
  - Thimothy 12y ago
    They started running their map service because google was about to start charging for Google Maps. iMaps already had a rollout that felt improvised and pretty crappy, if the Apple people were suicidal enough to get in a huge business they have absolutely no idea about, such as Web Search, I wouldn't expect a barely usable product in years.
    - redler 12y ago
      I don't remember anything about a fee, but I do specifically recall something about Google withholding from the iOS version two greatly desired features that had already been deployed on Android: vector tiles and turn-by-turn directions. The lack of the latter, at least, was beginning to rise to the level of consumer awareness as an iOS weakness.
  - bobajeff 12y ago
    My source for the costs of Google: http://www.datacenterknowledge.com/archives/2014/07/23/from-112-servers-to-5b-spent-on-google-data-centers-per-quarter/ http://www.datacenterknowledge.com/archives/2014/07/23/from-... "Google data centers cost the company more than $5 billion in the second quarter of 2014" My source for the costs of Bing: http://www.businessinsider.com/microsoft-bing-losing-billions-2011-4 http://www.businessinsider.com/microsoft-bing-losing-billion... "Put differently, Bing is spending $5.5 billion a year to generate $3 billion of revenue." (I divided by four to get quarterly) GPS data is not really on the same level as Web Crawl data. How often is a street added or changed versus a web page?
    - abalone 12y ago
      1. $5B is super way off. First of all you are lumping one-time construction costs in with the incremental costs of running the data centers. The article clearly states the bucket in which data center operational costs are included is $2.82B. 2. Even that bucket is a grab bag of other costs as well such as amortization of acquired assets (not necessarily for data centers). Additionally while web search is major it is certainly not the only thing that Google data centers do; for example they run Gmail and an AWS competitor on it. So it's very hard to determine just what the operational cost of web search is, but it's certainly well under $2.82B. 3. The Bing article clearly states its major cost increases are "costs associated with the Yahoo! search agreement and increased traffic acquisition costs", i.e. promotional not operational costs. This is not applicable to Apple, who already gets paid for traffic. 4. As for maps it's not just GPS data, it's road and signage and building data including visual imagery. That's many orders of magnitude more expensive to gather than loading a web page (even loading it 1000 times). You have to roll trucks and fly planes. In fact there was just a story yesterday about Apple rolling trucks to start gathering competing "streetview" data.. all from scratch.
      - bobajeff 12y ago
        Oh, my mistake. You may be right about Maps data being more expensive, if so then it does make sense for apple to make a Web search engine.
      - 12y ago
FireBeyond 12y ago
Actually about half of that: "For the full fiscal year, Apple generated $182.8 billion in sales, a new record for the firm, with $38.5 billion in net income." $105MM, not $200MM.
- redler 12y ago
  You're right with those numbers, but it's only half if you take the year's average per day. I was referring to their current rate (as of the most recent quarter, during which they earned $18B). $18B gives the nice, round, shocking $200M/day, but even $100M per day isn't half bad.

by redler 12y ago

bobajeff 12y ago

You may be right. Assuming you're right about their profits, that's 18B per quarter. Operating cost have been said to be around 5B per quarter for Google and 1.25B per quarter for Bing.

abalone 12y ago
Source please? Bear in mind they're already running their own competitive map service for exactly the same reasons I say they want to run their own web search. And that's probably not cheap either.
- Thimothy 12y ago
  They started running their map service because google was about to start charging for Google Maps. iMaps already had a rollout that felt improvised and pretty crappy, if the Apple people were suicidal enough to get in a huge business they have absolutely no idea about, such as Web Search, I wouldn't expect a barely usable product in years.
  - redler 12y ago
    I don't remember anything about a fee, but I do specifically recall something about Google withholding from the iOS version two greatly desired features that had already been deployed on Android: vector tiles and turn-by-turn directions. The lack of the latter, at least, was beginning to rise to the level of consumer awareness as an iOS weakness.
- bobajeff 12y ago
  My source for the costs of Google: http://www.datacenterknowledge.com/archives/2014/07/23/from-112-servers-to-5b-spent-on-google-data-centers-per-quarter/ http://www.datacenterknowledge.com/archives/2014/07/23/from-... "Google data centers cost the company more than $5 billion in the second quarter of 2014" My source for the costs of Bing: http://www.businessinsider.com/microsoft-bing-losing-billions-2011-4 http://www.businessinsider.com/microsoft-bing-losing-billion... "Put differently, Bing is spending $5.5 billion a year to generate $3 billion of revenue." (I divided by four to get quarterly) GPS data is not really on the same level as Web Crawl data. How often is a street added or changed versus a web page?
  - abalone 12y ago
    1. $5B is super way off. First of all you are lumping one-time construction costs in with the incremental costs of running the data centers. The article clearly states the bucket in which data center operational costs are included is $2.82B. 2. Even that bucket is a grab bag of other costs as well such as amortization of acquired assets (not necessarily for data centers). Additionally while web search is major it is certainly not the only thing that Google data centers do; for example they run Gmail and an AWS competitor on it. So it's very hard to determine just what the operational cost of web search is, but it's certainly well under $2.82B. 3. The Bing article clearly states its major cost increases are "costs associated with the Yahoo! search agreement and increased traffic acquisition costs", i.e. promotional not operational costs. This is not applicable to Apple, who already gets paid for traffic. 4. As for maps it's not just GPS data, it's road and signage and building data including visual imagery. That's many orders of magnitude more expensive to gather than loading a web page (even loading it 1000 times). You have to roll trucks and fly planes. In fact there was just a story yesterday about Apple rolling trucks to start gathering competing "streetview" data.. all from scratch.
    - bobajeff 12y ago
      Oh, my mistake. You may be right about Maps data being more expensive, if so then it does make sense for apple to make a Web search engine.
    - 12y ago

FireBeyond 12y ago

Actually about half of that: "For the full fiscal year, Apple generated $182.8 billion in sales, a new record for the firm, with $38.5 billion in net income." $105MM, not $200MM.

redler 12y ago
You're right with those numbers, but it's only half if you take the year's average per day. I was referring to their current rate (as of the most recent quarter, during which they earned $18B). $18B gives the nice, round, shocking $200M/day, but even $100M per day isn't half bad.