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Microsoft's biggest nightmare by Nicholas Carr

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Google data center under construction in The Dalles, Ore.

The next sea change is upon us.New revolution in computing is under way, and it threatens Microsoft’s traditional business.

What is happening to computing today is a revolution, the biggest upheaval since the invention of the PC in the 1970s. But it is not without precedent. It bears a close resemblance to what happened to mechanical power 100 years ago.

Large, windowless warehouses, each the size of a football field and adorned with cooling towers, dominated the site. An article in the International Herald Tribune described the complex as “looming like an information-age nuclear plant”.

What Google is building is a vast computing centre, by all accounts the largest and most sophisticated on the planet. Designed to house tens of thousands of PCs, all wired together to work as a single supercomputer, it is, indeed, the information-processing equivalent of a nuclear power station, able to pump data and software into millions of homes and businesses.

The Oregon centre, now largely complete, is just one of dozens of “server farms” that the company has built around the world, holding an estimated 500,000 computers.

But Google is not just using its computing grid to process web searches. It is also supplying services such as word processing, spreadsheets, and e-mail – programs that have long been the mainstays of Microsoft’s profitability.


No corporate computing system, not even those operated by big companies, can match the efficiency, speed, and flexibility of plants such as Google’s. One analyst estimates that Google can carry out a computing task for one-tenth of what it costs a typical company.


That is why the big data centres make Bill Gates and other technology executives so nervous.

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Nicholas Carr is the author of ‘The Big Switch: Rewiring the World, from Edison to Google’, from which this article is adapted