Data Center 2.0: Amazon invests in its own IT infrastructure
Shares of the online store Amazon scrambled yesterday (April 16) to a new peak (over the last 58 weeks) and the reason for this growth was not only the company's message about the upcoming sales of the new bestseller Harry Pottera. At the same time, Deutsche Bank analyst Jeetil Patel changed his recommendation on Amazon shares from “hold” to “purchase” and explained it in a very curious way: In his opinion, the current multimillion-dollar Amazon investments in its own IT infrastructure will pay for themselves very soon. The analyst suggests that Amazon (ed: quietly) is trying to create a "new operating system for the Internet."
Such a very ambitious assumption is based on the fact that the company invests in its own infrastructure backbone - both within and between individual computing centers, whose components (Hardware, memory, software) in the form of a kind of Grid-Modell can be offered to interested customers. Payment will be made depending on the amount of service, says Patel. The analyst has calculated that the monthly fee for such web services will start at $ 3 per month, plus the cost of the used infrastructure capacity. Such a low price will make the service attractive to other companies. And this in turn will give a new impetus to the growth of Amazon shares.
By the way, Amazon is not the first and not the only company that moves in this direction. Google has long been using its own IT infrastructure as the basis for its services, and Microsoft is actively expanding its server fleets, including as part of its “Live” strategy. Yesterday the concern launched a new Data Center in Quincy, Washington: these are tens of thousands of computers occupying a territory of sizes in 7 football fields. Wikipedia reports on the planned 800.000 servers (in total).