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Subject:  Google G-mail
Author:   Alex Chudnovsky:   view profile | all posts by this author | add to favourites
Date:   07:14:01 5 April 2004
 
On 20:31:33 4 April 2004 Dan Zambonini wrote:
>The calculation doesn't take into account that most email
>(plain text) can probably be compressed, for storage
>purposes, to about 1/10th of it's original size.

Indeed it does not take that into account. I however also did not take into account other factors that there will be 300 mln accounts rather than 30 mln, which would negate any compression gains. While there might be T&Cs regarding binary data I find it hard to believe that Google would taint its brand using tactics more known to usual suspects who would quote "unlimited internet access" but actually limit it to 100 hours a month.

On 09:30:24 4 April 2004 M. Johansson wrote:
>Hmm.
>£26,590,000 per year distributed on 30m accounts.
>That's a cost of £0.88 per user. If we assume an
>average adwords worth of 0.1£ (it's probably higher)
>that means that each user would have to click adsense ads
>0.75 times per month to make the service profitable. Hmm.

Hmmm indeed - I essentially skipped running costs which is why costs per user per year APPEAR to be that low. If we look at HoTMaiL we will see that they give away only 1Mb of space per user, thus decreasing their storage costs by factor of 1,000 so their costs per user should be dirt cheap, and if that was the case they should have been making fortune even with their annoying banners and popups. And if we look at subscriptions - £15 or so per year, then their margins per user should have been totally fantastic. Great in theory but in reality (AFAIK) they are struggling to make money, perhaps they broke even but they are certainly not a cash cow.

This means that actual running costs for just 1Mb account are much much higher than £1 per year.
-----------------

And think of the future when people _WILL_ be sending encrypted emails to each other which means email provider won't have access to email contents to actually analyse it and target any ads.
 
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  • Google G-mail, Dave Chaffey, 1 Apr 17:42
    Looks like there's another web-based mail service for e-mail marketers to test their creative / HTML coding against: I see from SearchDay: http://searchenginewatch.com/searc ...
    • Re: Google G-mail, Ashley , 1 Apr 18:40
      I also hear that Google are secretly developing a special 'adult' search engine? I've had difficulties finding it but apparently its called G-spot. Well, it is April 1st ...
    • Google G-mail, Alex Chudnovsky, 2 Apr 13:00
      On 17:42:15 1 April 2004 Dave Chaffey wrote: > I will certainly be signing up since it offers the facility to > search 1000Mb of e-mail for content using Google search > algo ...
      • Google G-mail, TallTroll, 2 Apr 17:10
        >and so will warez traders who will GMail being a very good >place to store big files that they trade online. Will it? If I were a "dodgy content" provider of whatever stripe, ...
      • Google G-mail, TallTroll, 2 Apr 17:11
        >and so will warez traders who will GMail being a very good >place to store big files that they trade online. Will it? If I were a "dodgy content" provider of whatever stripe, ...
        • Google G-mail, Alex Chudnovsky, 2 Apr 18:06
          I am highly sceptical that Google will be able to sustain this 1Gb offer unless they introduce some pretty draconian rules on daily traffic usage, thus limiting potential impact of ...
          • Google G-mail, mikegb , 3 Apr 09:10
            >Sorry but I am very sceptical about this feature being >anything but distraction from their core competency - >enabling highly relevant up-todate searching. Surely the point ...
            • Google G-mail, Dave Chaffey, 3 Apr 15:47
              I'm with you on this Mike. As within MSN and Yahoo!, Google will introduce a Gmail+ paid-for service and no doubt a raft of other fee-based services. It will also get more Adwor ...
            • Google G-mail, Alex Chudnovsky, 3 Apr 21:35
              On 09:10:15 3 April 2004 mikegb wrote: >Surely the point of it it all is to start owning the >audience it attracts? Well Google managed to make a lot of money without "ownin ...
              • Google G-mail, M. Johansson, 4 Apr 09:30
                Hmm. £26,590,000 per year distributed on 30m accounts. That's a cost of £0.88 per user. If we assume an average adwords worth of 0.1£ (it's probably higher) that means that each ...
              • Google G-mail, Dan Zambonini, 4 Apr 20:31
                > ( 30,000,000 x 1Gb ) / 300 Gb = 100,000 hard >drives required The calculation doesn't take into account that most email (plain text) can probably be compressed, for storage p ...
                • Google G-mail, Alex Chudnovsky, 5 Apr 07:14
                  On 20:31:33 4 April 2004 Dan Zambonini wrote: >The calculation doesn't take into account that most email >(plain text) can probably be compressed, for storage >purposes, to abo ...
                  • Google G-mail, Dan Zambonini, 5 Apr 10:03
                    >Indeed it does not take that into account. I however also >did not take into account other factors that there will be >300 mln accounts rather than 30 mln, which would negate ...
                    • Google G-mail, Alex Chudnovsky, 5 Apr 14:49
                      On 10:03:55 5 April 2004 Dan Zambonini wrote: >I guess there are far too many variables to accurately >estimate it! Yeah I agree - thats why I tried to keep it simple, eith ...
                      • Google G-mail, Dan Zambonini, 5 Apr 15:05
                        That's extremely interesting... Although there's been much 'April Fools/Not April Fools' speculation, and Google themselves denying an April Fools connection, I can't help not ...
                        • Google G-mail, Alex Chudnovsky, 5 Apr 16:10
                          Well, it looks legit to me - all what I'd expect from it is shown, very Google like too and it shows 1Gb box size :) Note AdWords panel no the right about tax software and how i ...
                        • Re: Google G-mail more screenshots, Alex Chudnovsky, 5 Apr 17:17
                          More screen shots here: http://fury.com/article/1990.php ...
                          • Re: Google G-mail more screenshots, Dan Zambonini, 5 Apr 17:21
                            >More screen shots here: > >http://fury.com/article/1990.php Looks like it's definitely real then! I wonder why the logo is so uninspiring; surely a million and one other pro ...
    • Google G-mail, Loz, 3 Apr 21:33
      I'm fairly happy with Yahoo! Mail for my personal account as it allows me to check my inbox via wap. But I'm always at 95% storage space used. For another email account I use www.f ...
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