Comments on: Google CapEx Falls, Temporarily http://gigaom.com/2008/10/17/google-capex-falls-temporarily/ Trusted Insights and Conversations on the Next Wave of Technology Thu, 26 Nov 2009 03:26:30 +0000 http://wordpress.com/ hourly 1 By: Did Google Issue a Bear Call? - GigaOM http://gigaom.com/2008/10/17/google-capex-falls-temporarily/#comment-916127 Did Google Issue a Bear Call? - GigaOM Wed, 03 Dec 2008 06:57:50 +0000 http://gigaom.com/?p=25272#comment-916127 <p>[...] one has to look at their other moves such as plans to slash 10,000 or so of their contractors, slowing cap-ex investments and killing off projects. These point to tough times for the company that has lived a lush life so [...]</p> [...] one has to look at their other moves such as plans to slash 10,000 or so of their contractors, slowing cap-ex investments and killing off projects. These point to tough times for the company that has lived a lush life so [...]

]]> By: Alex http://gigaom.com/2008/10/17/google-capex-falls-temporarily/#comment-906008 Alex Mon, 20 Oct 2008 04:23:09 +0000 http://gigaom.com/?p=25272#comment-906008 <p>Let's not also forget that there are some huge economies of scale that GOOG can leverage. These past big CAPEX investments should now allow GOOG to leverage it for X growth.</p> Let’s not also forget that there are some huge economies of scale that GOOG can leverage. These past big CAPEX investments should now allow GOOG to leverage it for X growth.

]]> By: Randy http://gigaom.com/2008/10/17/google-capex-falls-temporarily/#comment-905780 Randy Sun, 19 Oct 2008 03:28:44 +0000 http://gigaom.com/?p=25272#comment-905780 <p>I'm no expert, but I assume this little blip in capital expenditure must be some accounting tactic for the sake of PR. Same thing the whores did in Unforgiven when they pricked their fingers with a little needle to get a couple drops of blood to blush their cheeks with. The girls needed to look pretty but resources were scant.</p> I’m no expert, but I assume this little blip in capital expenditure must be some accounting tactic for the sake of PR. Same thing the whores did in Unforgiven when they pricked their fingers with a little needle to get a couple drops of blood to blush their cheeks with. The girls needed to look pretty but resources were scant.

]]> By: Ted Murphy http://gigaom.com/2008/10/17/google-capex-falls-temporarily/#comment-905744 Ted Murphy Sat, 18 Oct 2008 20:45:13 +0000 http://gigaom.com/?p=25272#comment-905744 <p>I think this is an interesting point. The drop in capex could be a precursor to slower growth. I note that Yahoo had a significant drop in capex as a % of revenues during Terry Semel's ill-fated cost cutting efforts back in 2004-2007.</p> <p>I'm not saying that Google will go the way of Yahoo, just that this might be indicative of management's outlook for growth.</p> <p>I am dubious of the idea that Google is simply spending more efficiently. Amazon showed higher capex as a % of revenues over the last three years, for example, as they built out their EC2 and S3 initiatives.</p> I think this is an interesting point. The drop in capex could be a precursor to slower growth. I note that Yahoo had a significant drop in capex as a % of revenues during Terry Semel’s ill-fated cost cutting efforts back in 2004-2007.

I’m not saying that Google will go the way of Yahoo, just that this might be indicative of management’s outlook for growth.

I am dubious of the idea that Google is simply spending more efficiently. Amazon showed higher capex as a % of revenues over the last three years, for example, as they built out their EC2 and S3 initiatives.

]]> By: dax2 http://gigaom.com/2008/10/17/google-capex-falls-temporarily/#comment-905588 dax2 Fri, 17 Oct 2008 21:56:17 +0000 http://gigaom.com/?p=25272#comment-905588 <p>I forgot to underline that I back the comment by Patrick Pichette. We could buy some very cost-effective servers today compared with earlier years. I doubt that Google infrastructure are lacking behind in hardware. (400-odd mio? Awesome!)</p> I forgot to underline that I back the comment by Patrick Pichette. We could buy some very cost-effective servers today compared with earlier years. I doubt that Google infrastructure are lacking behind in hardware. (400-odd mio? Awesome!)

]]> By: dax2 http://gigaom.com/2008/10/17/google-capex-falls-temporarily/#comment-905587 dax2 Fri, 17 Oct 2008 21:50:25 +0000 http://gigaom.com/?p=25272#comment-905587 <p>This is very interesting; I was looking for info about Wordpress and found out that your weblog has excellent info on WP and other subjects, too. Thank You!</p> This is very interesting; I was looking for info about WordPress and found out that your weblog has excellent info on WP and other subjects, too. Thank You!

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