A number of recent reports have suggested that Microsoft plans to build a large number of datacenters. According to the reports the company will build between 20-24 datacenters, each with 500,000 square feet available. Last year Microsoft bought two data centers totaling 250,000 square feet in Santa Clara, California, USA, at a cost of $200 million. The company also opened a data center in Washington and is working on a 470,000 square foot center in San Antonio.
A number of suggestions point to Microsoft strengthening its position as far as ‘cloud’ computing is concerned, with many considering an expansion of the company’s ‘Live’ network probable – especially its Microsoft Office Live Small Business service. Other speculation revolves around the possibility of Microsoft and Yahoo! merging its hosting operations once the (seemingly inevitable) purchase of Yahoo! goes through.
Yahoo! currently offers web hosting with no resource restrictions. The prospect of Microsoft and Yahoo! teaming up to offer web hosting under the same conditions could produce the industry’s first mega-provider. It would also further consolidate its progressive commoditization. As seems probable, should the ultimate objective of Microsoft’s purchases be web hosting rather than cloud computing, there is a very strong likelihood of Microsoft/Yahoo! absorbing smaller players as its hosting business develops and its need for capacity grows.
