DMR: So what you’re saying is that the Cloud becomes more of a hybrid Cloud?

Pete Grillo: Whatever my customer wants really. One interesting example is that we’re Cloud Computing to our customers, but we don’t use other Cloud services. People have said why don’t you use Cloud services for your own service? Well, for one, the price was very high when we looked at it – again this was in ’07, ’08, and maybe it’s come down a whole lot.

DMR: No. It didn’t. The price decrease did not go down as much as the volume increased actually.

Pete Grillo: Well I have the feeling you’re right. And things go up in our business about the same because – let me explain: The price of storage goes down, price of bandwidth goes down, web pages are getting bigger. So our unit of measure has gone up measurably in two years. I don’t have the numbers in front of me; my impression is probably 50 percent. Anyways, the average web page has gone up.

DMR: And in about four years 20 percent of all Internet ads are going to be video ads.

Pete Grillo: Remember when a web page used to be eight, 28, 15 kilobyte. Our average is considered in the hundreds of kilobytes, for an average web page. So that’s kind of interesting.

But when you talk about the hosting services – the big Cloud vendors that want to sell you the Cloud – they talk about storage and bandwidth. Their pricing models are very interesting, but for delivering lots of little pieces of data astronomically high compared to the price of us doing it ourselves.

DMR: With the machine-to-machine (M2M) business, things are going to change much more rapidly. Inventory is going to change. Data will also be re-purposed for just-in-time customization. Amazon pages are personalized for single individuals for a long time now.

Isn’t that an interesting problem for archiving because everyone’s page is going to look different and how do you later on argue that a certain element was there when in fact for the person that was viewing the page it wasn’t?

Pete Grillo: That is what our archive does. It basically says this is exactly the page we delivered to you.

DMR: The archive is going to be my personal view?

Pete Grillo: Right. You’re personal experience. Very important for law enforcement, where when you log in the right way you get to see the bad guy’s stuff. You can’t do that with a bookmark.