How Google will spend its money?


It is like putting the cart in front of the horse, but nevertheless interesting early morning mental m****rbation. The company plans to raise about $1.5 billion in its public offering and a lot of it will have to be spent on datacenter, networking gear and bandwidth. According to their filings with the SEC, nearly $250 million will be spent on”infrastructure” and IT makes up nearly 27% of their total expenses. How high those numbers will go post-IPO is anyone’s guess?

“We’ve done a couple of things in trying to figure out how much a company will spend on their infrastructure,” says Cindy Borovick, data center analyst with IDC told the NG Data Center Forum, which points out that “typically, network accounts for about 20 percent of the IT budget, and servers are 50 percent. That’s 70 percent of the IT budget, but as explained above in the S-1, Google’s spending on IT will certainly be higher than average.” Guess it will be a lot of money and primary beneficiaries could be current generation of equipment suppliers which include Force 10 Networks, Foundry Networks, NetScalar, Radware and F5 Networks. (Funny no Cisco, given that Cisco is also a Sequoia company!) Google’s job sites has a lot of openings in “data centers” all around the planet, so you know the dollars are going to spent on gear! [Link: Tracking Google’s IT Booty]

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