Dear Microsoft Executives,
Please find below a suggestion about how to generate from US$958 millions to US$1,224 millions in savings on the costs of operating MSN Hotmail over the next five years.
- Hotmail numbers in short
- Nature of the Hotmail traffic
- About us
- About ZipMail for Hotmail
- Hotmail numbers more in depth
- ZipMail value proposition
- About our proposal
- Why would you decide to deal with us?
- Where to go from here?
By offering 250 MB of Hotmail disk space to more or less 220
million users (most common estimate for the number of Hotmail users worldwide found on the web at the time we write this page), you commit to deliver
and maintain in time a maximum of 55,000 Terabytes of Hotmail disk space.
Including backup space this commitment is probably closer to 110,000 Terabytes (1 backup copy), 165,000 Terabytes (2 backup copies) or even more Terabytes of disk space to maintain.
Due to the fact that Hotmail users do not use (yet?) 100% of their available Hotmail disk space, the real numbers are certainly less than this.
Let's say that, on average, Hotmail users consume 60% of their available disk space. this makes a still impressive amount of 82,500 Terabytes of disk space full of Hotmail user messages (taking 2 backup copies as a realistic hypothesis).
Of course, a huge amount of network bandwidth is needed to absorb the corresponding Hotmail traffic.
As with any other messaging system, Most of this Hotmail disk space and network bandwidth is consumed by attached
Numerous attached files can be compressed into industry standard Zip files with excellent results in terms of compression ratio.
Our company, MK Net.Work, operates, with ZipMail and other optimization products, on the enterprise email compression market since 1995. We have today several millions of daily users of ZipMail at Lotus Notes and Microsoft Outlook-Exchange using corporations, all around the world.
The average impact of ZipMail on our customer corporate email traffic and storage is a 25 to 35 percent volume reduction.
The larger an organization is, the better the return on investment obtained with ZipMail is.
This is the reason why we created this new version of ZipMail for Hotmail. Hotmail, (with Yahoo! Mail and Google Gmail, for which we have also created new versions of ZipMail) is one of the largest email organizations in the world.
If we give a look at numbers, for each next million of Hotmail users
you will acquire in the future, you will need, at the current level of
disk space offered, a maximum of 0.250 terabytes of disk space + 2 backup copies, making a maximum of 0.750 terabytes.
If we imagine that, on average, Hotmail users consume 60% of the offered disk space, you will need 0.450 terabytes per million of Hotmail users.
Of course, you will also need the corresponding network bandwidth to absorb the corresponding Hotmail traffic.
This is where ZipMail can help.
Imagine that ZipMail is offered by Microsoft for free to each Hotmail user (and installed automatically at first or next login), most of the attached files sent by the Hotmail users are now compressed into standard industry Zip files (users are free to uncheck the Zip compression option when they attach a file, but next time they attach files, the Zip compression option is checked again by default).
Based on a very conservative 15% reduction of
the Hotmail email traffic (ZipMail cannot reduce the size of non-compressible files like JPG, MPG, AVI etc.), ZipMail can save 0.068 Terabytes on the 0.450
Terabytes of disk space needed to operate one million Hotmail users.
The exact same ratio applies to the network bandwidth consumed by Hotmail.
we consider that the cost of one single GB of Hotmail managed disk space (including
the related network bandwidth it has consumed and all related costs like servers, disk arrays, electric power, support, air cooling, fire protection, square meters etc.)
is around let’s say an incredibly low price of $10 per year (usual price for 1GB of fully managed disk space per year is generally from several hundreds dollars to over one thousand dollars per year in corporate environment), the yearly savings delivered
by ZipMail for each million of new Hotmail users are:
68,000 x $10 = $680,000
Yes, $680,000 saved for each million of Hotmail users per year, or $0.68 per Hotmail user per year.
Let’s do a couple of estimates on 5 years.
Let’s keep the $0.68 savings per user constant on five years. (You will probably offer more disk space per user, and, in time, the existing users may consume far more than the 60% of 250 MB we used in our above estimates, but we can also imagine that the price per managed GB could still decrease).
Number of Hotmail users growth: +10% per year