Alan Smithee

Dave Perry’s Gaikai – Servers on Demand

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Dave Perry, is smart, spelled SMRT. Seriously, he’s got this Gaikai project on fucking lockdown. He was talking with about scaling the business based on server capacity and isn’t worried in the slightest.

His plan is to not order and additional servers for Gaikai until they’ve hit their max, and if that happens, they’ll have a few waiting in the background while they order more from their contractor…he’s made it so the Gaikai guys never need to build the servers themselves, they just order them and and wait for them to roll in.

This is a smart buisiness model maily because he’ll never have to worry about having servers not being used and having to pay the interest and eating the depreciation that each one costs. I further dissect his statements after the jump.


“We only buy them based on demand. Why does that work? Because it keeps the cost down for everybody. We have no servers running, and I didn’t spend $150 million, with the interest on $150 million burning away as I hope people are going to show up. That’s basically the model – every time we hit maximum capacity, we order more servers.”

I think that this is a slight dig to the other cloud computing companies out there who are in the middle of getting things set up. They’ve most likely bought the entire room of servers and has them sitting there idling until their service launches (PlayOn anyone?).

“I’ve already been in discussions with companies that can build our hardware for us and scale almost immediately. They’ll have servers ready to go. We have two choices – either they build everything, or we build everything, and I kinda like that they build everything.”

Great idea to have someone else do all the grunt work, especially since the company that builds them will also probably be the ones to have to come out and do the repairs as well…at least I know first hand this is how the U.S. Government does things.

“But put it this way – it’s like a wet dream for investors. To come to them with a problem like that – we can’t scale fast enough – trust me, I can line them up. If I go to an investor with that problem, they’ll help me solve it.”

Sounds like Dave Perry is excited to begin work on the new SkyNet that will eventually kill off all humanity…I’m alright with it as long as the robots all look like Earthworm Jim. They’d have to yell out “GROOVY!” before killing anyone though, that would be awesome.

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