Tuesday, November 10, 2009

Google Slashes CapEx Even Further

Google (GOOG) spent just $139 million on its data centers in the second quarter of 2009, as it further squeezed capital spending that was already at historic lows. On one level, the company’s ability to reduce infrastructure spending reflects well on Google’s capacity planning during its 2007 building boom, when it announced four new data centers. It’s also part of a broader effort by Google to reduce spending uring the current economic slowdown.

The second quarter capital expenditure (CapEx) total was dramatically lower than the company spent during the same period in 2006 ($690 million), 2007 ($597 million) and 2008 ($698 million).

No comments: