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Technology Stocks : All About Sun Microsystems

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To: QwikSand who wrote (63569)12/23/2005 3:40:45 PM
From: Sam Citron  Read Replies (2) of 64865
 
Are you questioning the comparison to payroll?

Absolutely. I sincerely doubt that the electricity consumption costs of Google's "power-hungry servers" amount to 1% of their payroll costs (including options expenses).

Let's do the math:

assuming 100 watts continuous power consumption per server and electricity costs at $0.15 per kwh

.1 kwh * 10,000 servers * (365 * 24 hours) * 0.15 per kwh = $1,314,000 per year

That amount is immaterial, which is why electricity expenses are not addressed in Google's financial statements.

Sam
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