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Technology Stocks : InfoSpace (INSP): Where GNET went!

INSP 84.85

-1.8%

Nov 17 3:59 PM EST

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To: Hawkmoon who wrote (17332)	3/6/2000 4:30:00 PM
From: Greg S.	Read Replies (4) of 28311

X-drive.com - I'd stay away from this one. Storage space is already a commodity, I don't think there's any more of a market in renting it over the internet than there is in selling it on disks. Let's compare space on X-drive to purchasing local media during a 1-year time frame (lending an advantage to X-drive which seems to be geared more towards short-term storage) - note I'm assuming interest rates of about 7%: X-drive: - not fully integrated with Explorer so less convenient to access - transfer rates only as fast as network bandwidth, probably around 100k/sec for a typical cable modem user - 1 GB of storage space - monthly payment of $19.95 - total opportunity cost 1 year from now of $248 - true cost to consumer = $248/gigabyte-year Local drive, any new ATA/66 drive such as the Maxtor DiamondMax Plus 40: - transfer rates up to 30MB/sec - 40GB of storage space - single initial payment of $250 - total opportunity cost 1 year from now of $268 - true cost to consumer = $6.7/gigabyte-year Even if X-drive lowers their prices, will they ever compete? Of course, within this very disparity lies their margin. But it's not as if consumers are unable to access the lower-cost solution! Existing market prices are an order of magnitude better than what this company offers - how they heck do they expect to preserve these margins?There are of course factors such as they can re-use disk space when customers leave, when drive prices drop they also realize lowered costs, etc. But there is very little reason to use their service as it is now. Aside from a few minor conveniences (password protection, sharing, availability for short-term) it is completely inferior to local storage in every respect. This is a couple of people with an interesting idea preying on consumer ignorance to get rich. Boo hiss. -G

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