400k would last me 13 years for a rack, power and 10Gbit/s bandwidth at my colo place (Switzerland, traditionally high prices)
400k would last me 13 years for a rack, power and 10Gbit/s bandwidth at my colo place (Switzerland, traditionally high prices)
Yes, but that's not their only expense.
Yes, but that’s not the last or only donation they’re receiving either.
Don't bet on receiving money in the future.
It's a community donation-supported project. That's kind of the whole deal.
Regardless, the ongoing interest on $400K alone would be enough to pay colo fees.
Since you've already done the math, what's the interest on $400k pay for the colo costs?
at a (fairly modest) 3.3 its like 1100/month.
I don't know what kind of rates are available to non-profits, but with 400k in hand you can find nicer rates than 3.3 (as of today, at least).
that covers quite a few colo possibilities.
USD money market funds from Vanguard pay about 3.7% now. Personally, I would recommend a 50/50 split between a Bloomberg Agg bond ETF and a high-yield bond ETF. You can easily boost that yield by 100bps with a modest increase in risk.
Another thing overlooked in this debate: Data center costs normally increase at the rate of inflation. This is not included in most estimates. That said, I still agree with the broad sentiment here: 400K USD is plenty of money to run a colo server for 10+ years from the risk-free interest rate.
Stupid question from me: What are their other costs? I'm a total newbie about data center colo setups, but as I understand, it includes: power and internet access with ingress and egress. Are you thinking their egress will be very high, thus thus need to pay additional bandwidth charges?
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