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Apple buys Data Center ($45M-$50M)

Does This Represent A Shift In Apple's Services?

nagromme said:
This does sound like iTunes and/or .Mac expansion...
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There can be little doubt that the iTMS would greatly benefit from upgraded and increased capacity available through a facility such as this, but my interest was piqued by the enormity of the new digs. I realize that the iTMS is going to continue to grow and include more options from different television networks, record labels and perhaps film studios, but how rapid would such growth have to be to necessitate the purchase of a Tier IV Data Center?

It could be that the situation and/or price was too good for Apple to pass up, but it seems like there is something more at work here. For all the talk of Apple partnering with various companies, Apple has not repeatedly shown that, in many instances, it can implement its own model and compete directly with an entity that was not previously considered a rival.

Call it a funny feeling, but I see a conflict with a group like Google on the horizon. Apple will always be a superior hardware manufacturer, but its success in providing services once thought beyond its capability cannot be denied. Though new projects are always subject to cost effective constraints, the iTMS cannot be, in my estimation, the ultimate embodiment of Apple's reach into the daily rituals of consumers' lives.
 
Apple is obviously enclosing this data center into a metallic case and selling it as the new PowerMac.

But seriously, what are the logical possibilites for this type of center? It doesnt seem logical to me that it would be for anything iWeb related, because they seem to have that under control.

Perhaps they will begin streaming media to iPods. Commercials, Trailers, Videos, Featured Bands, Etc.

But honestly we will probably never know what Apple did with this Data Center, as it will likely be a behind the curtains type of thing that we wont even notice.
 
Probie said:
I live in Newark. The building they bought is less than half a mile away from my school. Tomorrow after school, I will go to it, take pictures of the exterior and try to worm my way inside, if possible. Anyhting that I shoul look for in particular?
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wow. daring. good luck. :eek::rolleyes:

no, but seriously, goooood luck.
 
Wouldn't a consolidation of other data centres to one make more sense. Maybe they have run out of room on their existing facilities and are moving to a larger one?
 
While interesting, I'm not sure how this is front page rumor material.

Apple could very well just be buying this for internal data warehousing. For example to meet sarb-ox requirements.

Then again it could be for iTunes and movies... :D
 
This datacenter "may" be loosely related to tomorrows fun,new products but in a near future sort of way..

There is no way Apple could buy a mothballed datacenter and have it up and runniing in 2 days.
 
I skimmed the article, but don't recall it saying when the purchase was finalized. If it was 60 days ago or earlier, I'd say an iTunes Video Store is a distinct possibility. However, if it was finalized prior to then, I don't think we'll be seeing it tomorrow.

I'm basing the above on the assumption that, if they do announce a video store, it would go live directly after the event.
 
I agree....

macidiot said:
While interesting, I'm not sure how this is front page rumor material.

Apple could very well just be buying this for internal data warehousing. For example to meet sarb-ox requirements.

Then again it could be for iTunes and movies... :D
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Coming from the data-center business, $45 million for a Tier IV data center is pennies on the dollar. This is a great pickup for Apple and will probably be used for a combination of web services and internal applications/hosting. At 107,000 sq feet for $45 Million dollars means they paid approximately $467.00 per sq foot for an N+1 redundant data center in prime real estate area of Newark / NY. Compared to what MCI paid to build this thing, that is a steal. Nice move Steve....Whoever is hosting all of Apples stuff now should be crapping their pants on that lost customer. Don't read anymore into it than this. I doubt they will end up using all 107,000 sq feet any time soon, but there migration costs for the future sure are minimal now. One other trend in the data center business these days is to split your architecture across two coasts for redundancy and fault tolerant operations in case of a disaster. I'm sure this facility will mirror what happens out west and will provide that redundancy.

KaiMac
 
Probie said:
I live in Newark. The building they bought is less than half a mile away from my school. Tomorrow after school, I will go to it, take pictures of the exterior and try to worm my way inside, if possible. Anyhting that I shoul look for in particular?
Click to expand...

If you do manage to get any pictures (even if it is just the exterior, which I suspect will be all you will be able to get) be sure to post them on here!

As for the data center, as others have stated, I think perhaps it doesn't tie in directly with tomorrows annoucements, just that they couldn't pass up such a great deal and now they have a data center for when they do expand and offer more and more services.
 
Peace said:
This datacenter "may" be loosely related to tomorrows fun,new products but in a near future sort of way..

There is no way Apple could buy a mothballed datacenter and have it up and runniing in 2 days.
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While I have no doubt that you're correct, the braintrust at Apple has a penchant for announcing things that are still weeks away--and a lot of people still lap it up.

Your opinion on the possible impact of this purchase on a potential April 1st soiree?
 
boncellis said:
While I have no doubt that you're correct, the braintrust at Apple has a penchant for announcing things that are still weeks away--and a lot of people still lap it up.

Your opinion on the possible impact of this purchase on a potential April 1st soiree?
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I'd be a fool to speculate on April 1st. ;)
 
This is getting good

If Steve does not talk about this tomorrow then there are going to be some huge announcements in a few months time.
 
1) The purchase price appears to be very cheap, i'd guess it is without any servers etc so apple can outfit it with its x serves and what not.

2) Although onthe surface this could be over kill, i would guess that any company wanting to expand that needs this kind of place would buy more than it needs if the price is right. Why not buy double what you require if you are getting it for 1/2 the price?

3) Although the building was built for MCI the nature of the building does not suggest it is a facility for telecom functions, MCI would have been inclined to load the place up with routers & servers etc for routing of internet or telecom traffic, Apple can fill it up with the same equipment and use it to serve tunes, movies etc.

4) If Apple was to sell it's own cell phone and also act as a provider (unlikely) I would suggest that it would be reselling on an existing providers network.
 
Data centers generally house computing, data-storage and networking equipment assisting in Web-based services and transactions.
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Well as long as we are now all becoming masters of the obvious, I'd say this has something to do with a certain web service that is planning to extend (iDisk).
 
Touche

Peace said:
I'd be a fool to speculate on April 1st. ;)
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Again, I defer to your intellect.

However, I hope that sentiment is not echoed throughout these hallowed halls, MacRumors should prove to be a destination for high comedy.
 
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