Welcome to WebProNews Breaking eBusiness and Search News
Advertise | Newsletter | Sitemap | News Feeds News Feed 
 WebProNews Search Part of the iEntry network iEntry inc. 

Google Expansion To Include $250M Tech Upgrade

WebProNews
Staff Writer
Published: 2004-05-04

WebProNews RSS Feed


When filing for its IPO, search engine Google was required to disclose its financial information, by order of the SEC. This information contained Google's revenue history and its profit margin from the revenue they took in. The disclosure also revealed what Google intends to do with a portion of its profits.

Google has planned to use a large portion of its profits towards capital spending. According to BusinessWeek Online, Google capital spending could be in the neighborhood of $250 million, nearly 25% of its 2003 revenue. This raised the question of "should a company that's getting ready to be publicly traded be spending that much?"

"For a technology company, [the number] does seem awfully high," says Paul Bard, an IPO analyst at Renaissance Capital in Greenwich, Conn., who adds: "for a company like Google, I would expect it to be well under 10%."

The question is, what is Google going to spend all that money on? Google is said to be expanding its data centers, which are large clusters of servers that give Google the ability to work quickly from almost any location. With new data centers comes the need for more bandwidth.

Experts believe the reason for this large expansion is Google's email service, Gmail. BusinessWeek offers an explanation: "even if a Gmail account holder only has 500 megabytes of mail -- half the system's capacity -- Google will need to create enough storage space across its network to handle several times that amount in order to backup the account."

Other Google projects, like Orkut and Google's in-house projects, contribute to the need for expansion because they use large portions of resources as well.

Receive Our Daily Email of Breaking eBusiness News


About the Author:
WebProNews | Breaking eBusiness News Your source for investigative ebusiness reporting and breaking news.

WebProNews RSS Feed

More Articles

Contact WebProNews
Advertisement





TOP NEWS

Targeted Information for Business
WebProNews is part of the iEntry network

Internet Business: Marketing: Small Business:
WebProNews MarketingNewz SmallBusinessNewz
WebProWorld AdvertisingDay PromoteNews
EcommNewz SalesNewz EntrepreneurNewz

Software: Search Engines: Web Design:
WebMasterFree Jayde B2B DesignNewz
NetworkingFiles SearchZA FlashNewz
SecurityConfig SearchNewz WebSiteNotes

Developer: IT Management: Security:
DevWebPro ITManagement SecurityProNews
DevNewz SysAdminNews SecurityConfig
TheDevWeb NetworkingFiles NetworkNewz

The iEntry Network consists of over 100 web publications reaching millions of Internet Professionals. Contact us to advertise.
eBUSINESS RESOURCES






 Advertise | Contact Us | Corporate | Newsletter | Sitemap | Submit an Article | News Feeds
 WebProNews is an iEntry, Inc. ® publication - $line) { echo $line ; } ?> All Rights Reserved
About WebProNews
WebProNews is the number one source for eBusiness News. Over 5 million eBusiness professionals read WebProNews and other iEntry business and tech publications.

WebProNews provides real-time coverage of internet business.

Free Email Newsletters:
WebProNews SearchNewz
WebProWorld DevWebPro
Marketing SecurityNews
Plus over 100 other newsletters!

Send me relevant info on products and services.


WebProWorld
Ten most recent posts.

NetworkingFiles
Featured Software

WebProNews in the News
View all recent mentions of WebProNews from around the world!

Recent Articles On ...
Google eBusiness
Yahoo Ask Jeeves
MSN Blogs
Search Engines Blogging
Affiliate Programs Marketing
eCommerce Advertising
eBay Sun Microsystems
AOL Adsense
Microsoft Adwords
Oracle IBM
Amazon Apple
SEM Mac
SEO iPod
Adsense XBox
PR Adobe



iEntry.com WebProWorld RSS Feed WebProWorld Contact WebProNews Print Version Email a friend Bookmark us