The capex connection: Why we pay for privacy on the Web

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There is a big connection between Facebook’s large and growing infrastructure budget and advertising, the latter of which is the primary culprit behind many privacy concerns. The gist is that ad-supported web platforms such as Facebook have to spend lots of money on infrastructure in order to maintain adequate performance levels and power new features. However, that means every dollar spent on infrastructure has to add up to even more money brought in by advertising. Simply put, the true costs of building new infrastructure take a huge bite from a company’s bottom line — in more ways than one.

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About the author

Derrick Harris

Infrastructure Curator , GigaOM Network

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