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ComputeNext: tackling capacity issues for hosting companies

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Uploaded on Feb 20, 2011

In any capital intensive business, a key to success is to get the most efficient use out of the infrastructure you have purchased, and this is certainly true for web hosting and data centers. ComputeNext hopes to make this easier by providing a unique way for hosting companies to share resources with each other.

"What we are building today are solutions that can help hosters and data centers connect in a way that they can create new business models, make better margins and compete with the big guys," explains Sundar Kannan, Founder and CEO of ComputeNext. "I think there's a real opportunity here...where [data centers] can now share resources with other data centers and other hosters depending on workloads, depending on excess capacity, depending on time shift, depending on margins" to create a win-win situation for everyone involved.

The idea is for hosting companies to join together in a federation. Members of the federation can buy and sell hosting capacity with one another so that a data center would not need to purchase its own additional equipment for periods of peak demand. It would simply contract with another member of the federation to purchase excess capacity for a limited time. ComputeNext would extract a percentage of the amount paid to the provider of capacity in each transaction.

Kannan sees significant opportunity in this space and expects it will only get larger. "I think eventually, when computing becomes a commodity, there will be so much automation, there will be so much need in terms of all the consumer demand that is coming down the pipeline...that data center demand is going to be extraordinary."

More info:

ComputeNext web site: http://computenext.com/

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