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Businesses Hardware

How Do I Put Unused Servers To Work? 302

olyar writes "I worked for an internet start-up last year and during the 'we have plenty of money' phase, a lot of server hardware was purchased. Eight months later, there is very little money, but we're still plugging along — using only a fraction of the hardware. We just cleared out a co-lo and I now have a stack of 17, 1U servers in my garage. Each of those has 2 servers, each of which is a 2-processor, dual-core box with 8 GB of RAM. Add that up and I have 136 processors and 272 GB of RAM with nothing to do. The IT guy in me thinks that's a waste of FLOPS. The wanna-be businessman in me thinks its probably a waste of money as well. So I've been brainstorming ways to put all of that power to good use. Any ideas?"
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How Do I Put Unused Servers To Work?

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  • by Splab ( 574204 ) on Tuesday February 17, 2009 @11:05AM (#26886515)

    Yeah was thinking the same, smartest thing to do is sell it, way too much hassle to try and compete with existing services.

  • Self-employment (Score:5, Insightful)

    by David E. Smith ( 4570 ) on Tuesday February 17, 2009 @11:06AM (#26886539)

    Start competing with your employer. If they can afford to do whatever it is they do, and still just give away thousands of dollars in gear, there's obviously room for improvement.

  • by David E. Smith ( 4570 ) on Tuesday February 17, 2009 @11:08AM (#26886569)

    It takes a decent amount of electricity to run that much hardware. That may not be the kind of "donation" the OP had in mind - donating to the local power utility.

  • Donate them. (Score:5, Insightful)

    by cbiltcliffe ( 186293 ) on Tuesday February 17, 2009 @11:08AM (#26886571) Homepage Journal

    Donate them to Pirate Bay. If nothing else, it will help them with the streaming video for their trial. :)
    Or, you could run Crysis in software rendering mode.
    Or rent it out to spammers, crackers, etc.

    Seriously, though....you could probably rent out time on it to researchers for less than most supercomputer time costs. Especially since the hardware costs you nothing. All you have to pay for is power. Figure out how much it uses running full tilt, double or triple that cost, install Linux on the thing, and rent out CPU time.

    Maybe you could even be part of the next big breakthrough in security research.

  • Sell them. (Score:5, Insightful)

    by Eevee ( 535658 ) on Tuesday February 17, 2009 @11:09AM (#26886585)
    Somebody gets cheap hardware, your company gets more cash, the servers get used for something worthwhile...everyone wins.
  • by KibibyteBrain ( 1455987 ) on Tuesday February 17, 2009 @11:16AM (#26886693)
    Even if he tried to do something profitable using them, between paying for power and bandwidth to operate them, it would have to be a real business model to even expect to break even in the modern economy of cheap professional server hosts. If there is a local university by you, I'd advertise trying to donate it to a local college or University with engineering/computer science programs. Often students just need academic clusters for the experience of parallel programming problems, and of course it could even help in minor actually useful research. And I'm sure they could help you work out a way to get some sort of tax recognition for the donation.
  • by subreality ( 157447 ) on Tuesday February 17, 2009 @11:19AM (#26886745)

    The IT guy in me thinks that's a waste of FLOPS

    It's not a waste of FLOPS. There are plenty of spare MIPS and FLOPS in the world - witness the amount that get donated to folding@home, seti@home, various cipher cracking contests, etc. While you too could donate to those causes, I'd suggest against it - it's one thing to donate niced cycles of a machine that otherwise has to be running, but it's a tremendous waste of power to spin up that many boxes just to hand out cycles.

    Recognize those servers for what they are - a waste of *money*. You sunk too much cash into a resource (and that's fine, no business has perfect foresight, and you had to anticipate potential needs). Now liquidate them and get your money out so you can spend it on something better than depreciation. If it turns out you need them in a year, I assure you you can buy servers for less $/FLOP from the liquidators at that time.

  • One question... (Score:3, Insightful)

    by Aphrika ( 756248 ) on Tuesday February 17, 2009 @11:24AM (#26886807)

    I now have a stack of 17, 1U servers in my garage

    Sorry, where do you live again? Seriously though, think of the power and cooling you're saving. In all honesty, sell them off to someone who can use the horsepower, and in return you get some hard to come by money. Simple.

  • Sell them ASAP (Score:2, Insightful)

    by Evro ( 18923 ) * <evandhoffman AT gmail DOT com> on Tuesday February 17, 2009 @11:37AM (#26887049) Homepage Journal

    They don't appreciate in value. Virtualize the rest of your servers and sell the ones you free up from doing that too.

  • Re:Beowult (Score:5, Insightful)

    by TheRaven64 ( 641858 ) on Tuesday February 17, 2009 @11:42AM (#26887153) Journal
    I'd like to take this opportunity to thank whoever coined the word 'Beowulf' as a very convenient shorthand form of 'I don't know anything about cluster computing, please disregard my opinion.' I can't begin to imagine how much time this has saved people over the years.
  • by tibman ( 623933 ) on Tuesday February 17, 2009 @11:54AM (#26887413) Homepage

    It's the perfect time to adopt a mad scientist. Seriously, how cool would this be to a Neural Net researcher? I honestly think you should put an advert out saying "looking for researcher to utilize private cluster with 272gb ram and 136 procs".

  • Sell ASAP (Score:5, Insightful)

    by swordgeek ( 112599 ) on Tuesday February 17, 2009 @12:22PM (#26888041) Journal

    Buying computers is a cost sink. You buy computers and amortize the cost of them over a few years. You ONLY buy computers because you need to do computing work.

    If you don't need the computing power, sell off 90% of them at a great price (maybe 20% below market value), RIGHT NOW. Holding onto depreciating assets with no return on them is no better than tossing money into a furnace.

    Keep a couple of 'em around for growth, spares, and new projects. Sell the rest, and when you need the computing power, buy something 'x' times faster for the same amount of money.

  • by hedwards ( 940851 ) on Tuesday February 17, 2009 @12:46PM (#26888527)

    That's not true. Well, it would be if the inflation rate were really that low. The problem is that what you're referring to as inflation is really an increase in the price of a section of commodities.

    The real inflation rate is based entirely upon the rate at which the local country prints money. Right now that rate is way, way over 3%, nobody really knows what it is because the US stopped keeping track of the money supply, but it's going to be quite high.

  • by nfsilkey ( 652484 ) on Tuesday February 17, 2009 @01:16PM (#26889051) Homepage

    If you dont have a pressing need, why bother powering them up? Theres a reason $job pulled them from the colo. Im sure they are hungry heat-factories. Keep that green in your wallet when its time to pay the monthly power utility bill and just dont power them up.

    And if youre not going to spin them up, punt them to someone who needs/wants them while they still have some value before Moore renders them useless ...

  • by JonTurner ( 178845 ) on Tuesday February 17, 2009 @01:30PM (#26889331) Journal

    Regardless of what you do as far as utilizing the servers, call your insurance agent straightaway and make sure that equipment is insured! Business property is very unlikely to be covered by your homeowner's policy so theft/fire/whatever could leave you financially exposed (or even liable, should the investors choose to come after you for reparations).

  • by Anonymous Coward on Tuesday February 17, 2009 @04:15PM (#26892531)

    it's probably a bad idea to script the publication of porn of unknown origins. While the folks hosting the news group may get some legal protection, it's pretty conceivable that you could end up distributing porn that isn't legal where you live.

    Getting busted for distributing kiddy porn, even if it was automated, isn't something I'd feel comfortable risking in the current climate.

  • by cowdung ( 702933 ) on Tuesday February 17, 2009 @04:27PM (#26892779)

    It never ceases to amaze me when startups begin by spending a LOT of money. The key to starting a business w/o a lot of financial backing is to spend the LEAST you possibly can until you have a solid income.

    Why on earth would you burn cash on servers? In our startup we're just using Amazon's EC2 until we need something else. Its basically a fancy hosting service. And we only pay for what we use.

    If/when the product is up and running, and the business grows, and Amazon ceases to be useful, then we'll think about investing in expensive hardware!

    I think all this free VC cash mentality is very harmful for businesses. What ever happened to making money the old fashion way... and then selling the business once it has proven itself? The VC route is basically the lottery route.

    I believe a business should require a small investment and then pay for itself.. and as it proves its potential it gets funded more.
    (that's basically how my other business works.. though it basically funds itself because its PROFITABLE!)

  • by harry666t ( 1062422 ) <harry666t@nospAM.gmail.com> on Tuesday February 17, 2009 @05:01PM (#26893361)
    You mean ::1
  • by Limecron ( 206141 ) on Tuesday February 17, 2009 @06:41PM (#26895019)

    Not to burst your bubble on this, but the chances that you'll even come close to breaking even are highly unlikely.

    First off, even if you're only running 500watts in servers, which is not more than 2 decent ones under moderate load, you are paying about $450/yr to keep them on 24/7. Assuming you're lucky enough to get power as cheap as $0.10/kWhr.

    Unless you have some source of customers, i.e. you are a web-developer, or have lot of friends who want a sub-par web host, you'll need to advertise. The hosting market is incredibly saturated and Adwords on hosting keywords is very expensive. Expect to spend a few thousand per month for a few months to recruit your initial 100 users.

    Once you've got 100, you can probably turn it down to a few hundred per month to keep to user count flat to make up for those you lose in turn over.

    This also assumes that with that advertising you are actually able to sucker some users to pay $10/mo for static hosting on your cable modem, while they can get it for free from a number of providers like Google, or pay what amounts to a few bucks a month for hosting with an SLA, a real support staff and some level of redundancy and backup. There are a lot of suckers in the world, so we'll assume this is possible.

    Now, after you factor in the time you spend answering inane support e-mails from your customers, you'll see it's probably more profitable to get a second job at McDonald's. If only flipping burgers was as much fun as playing with servers. ;)

  • by SausageOfDoom ( 930370 ) on Wednesday February 18, 2009 @03:42AM (#26899501)

    Only then you have to find the time to set up management and billing systems etc, and then offer on-going decent end-user support. It sounds like that's not related to the original business plan in any way, and so the staff skillset is likely to have a few gaps.

    For a business that's low on money, it seems absurd to spend even more money to get into a market that's already saturated with well-established competitors who are better at what they do than you will be.

    Frankly the only thing that makes sense is to sell the servers, and put the money in a bank account to help cover staff wages in the future.

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