Printed from http://www.electronista.com

Apple already pumping over $750 million into NC datacenter

updated 10:55 am EDT, Fri October 14, 2011

May create massive barrier to competition

Apple has already sunk at least $750 million into its North Carolina datacenter, Asymco's Horace Dediu observes. The information comes from Property, Plant and Equipment information in the company's quarterly statements. Roughly $1 billion was spent on that category between December 26th 2009 and December 25th 2010; the $750 million figure comes from deducting an estimated $250 million dedicated to the future "spaceship" campus.

Critically, the $750 million tally includes only the building itself, not any money spent on servers, workers, research, bandwidth or any other potentially massive expenditures. The original goal was to spend invest $1 billion in the facility over nine years, but Apple may already be well past that amount. The datacenter mainly exists to support iCloud, a set of iOS- and Lion-focused Internet services which only went live on October 12th. The building is also likely handling part of Siri, the iPhone 4S' voice command system, and various iTunes functions.

"What this level of spending implies is that iCloud (and Siri and iTunes) are expensive," comments Dediu. "They may seem ephemeral and even trivial as services, but they require a staggering commitment few can make. Apple made that commitment and they made it early on, before the first quarter billion users were even on the horizon. If platforms are moving from local to distributed and if value moves from selling things to 'getting to know you' and if that knowledge requires infrastructure control then the number of companies that can participate in the market shrinks dramatically. Not only in terms of who has the capabilities, but who could even afford to acquire them."



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

  1. bobolicious

    Dedicated MacNNer

    Joined: Aug 2002

    -2

    If only...

    cloud computing was a more sustainable concept, or at least used renewable energy...

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +4

    right...

    So they're estimating that Apple already has spent $250 million on a building they haven't even constructed, so the rest MUST be for the data center. What else could it be for, right? Certainly we know Apple has no other property in the world...

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Life n Soul BM211 Bluetooth speaker

Bluetooth speakers aren't only for listening to some music at the park or on a long bus ride, but can also be built with tablets in mi ...

Epson PowerLite Home Cinema 2030 projector

With high-definition televisions now the standard, 4K televisions becoming the next big thing, and plasma TVs going the way of the din ...

Life n Soul 8 Driver Bluetooth headphones

When it comes to music on the go, consumers generally have some options to consider when looking for the best experience. While Blueto ...

Sponsor

toggle

Most Commented

 
toggle

Popular News