Elon Musk is a shrewd businessman who knows the value of partnerships. SpaceX is known for its exploits in the space travel industry with NASA contracts and the launch of satellites for other companies.
However, SpaceX has another business that is growing by leaps and bounds when Musk realized he would need a lot of money to fund his effort to colonize Mars. came up with a way to make money by providing high-speed satellite Internet services and that's how StarLink was born.
StarLink has put satellites into space to transmit Internet connectivity to users on Earth, although it's not an entirely new business model. SpaceX has managed to disrupt the industry as you would expect any industry that musk decides to enter.
Style estimates could generate 50 billion dollars in revenue per year. is already one of the most valuable private companies in the world, with a total valuation of close to 100 billion dollars
Users are spread across 14 countries - the number of subscribers will increase when Stalin gets worldwide coverage musk said worldwide coverage should take place later this year. Musk said the beta would end in October, but SpaceX's chief financial officer, Brett johnson, said SpaceX is already producing 5,000 dishes a week, that's an annual capacity of 250,000, more than half a million people have pre-ordered or banked for Starlink services. Starlink won't have a hard time attracting customers with such interest when it finally exits the beta stage, even so, the service will only get better for customers.
After all, the next-gen styling kits will come at half the production cost, which means, while the cost to set up the antenna could be reduced from SpaceX's current 499 charges of $99 a month to Starlink is an absolute gold mine for the space company,
By @allwork.space |
others in the business like amazon should be careful because SpaceX doesn't t prisoners and would clean the floor with them, despite having a promising business.
Elon Musk isn't budging on partnering, he's teaming up with Google, whose cloud unit will provide computing and networking resources to help Starlink deliver internet services through its satellites.
synergy will provide ultra-fast internet services for business customers.
We can start to see the result of the partnership as early as this year, especially as musk has promised that StarLink will come out of beta mode, despite Google's size,
this deal is huge because it's giving it an edge over its competition, the software giant Microsoft and the amazon king of online retailing in the cloud computing market, Google needs to diversify as quickly as possible because its advertising business is no longer growing at the normal rate.
The cloud is a way for Google to increase its revenue to sustain its growth, so getting a customer like SpaceX is a big deal for Google because of its cloud component, the transfer service will be delivered to customers at high speed.
Google's first data center to host a Starling base station is in New Albany Ohio, followed by other data centers in the US, but ultimately most Google data centers worldwide would be connected to Google and SpaceX has a bit of history in 2015, the search giant invested $900 million in SpaceX, which was supposed to cover some technologies, including manufacturing the satellites themselves, so it's quite natural for the two companies to do business together, the deal. it is beneficial to all parties involved.
Google manages to bring its cloud services to more customers through a fast and secure internet network, it will compete with Amazon in particular, which has its own Kuipers satellite internet service project to bundle with its formidable cloud business, already that StarLink will be available even in remote locations or sports that ISPs do not serve means that Google can offer its cloud to anyone anywhere on earth.
SpaceX will have a secure foothold in the company market every business customer that google subscribes to its package automatically becomes a SpaceX customer much of the company's focus has been on home or residential access, but this deal with google will increase the reach of SpaceX by a wide margin.
The customer receives a simplified package they don't have to deal with two separate contracts and more importantly, they can access the Google cloud regardless of their location, which means that even search stations at the north pole, for example, or in the desert can store and access their data over a high-speed connection, they can also run their apps on the google cloud infrastructure instead of a local computer, including ai machine learning capabilities and analytics commenting on the senior vice president deal cloud infrastructure manager ers hosel said Google is very pleased to partner with SpaceX to ensure organizations with distributive footprints have secure and fast access to the critical applications and services they need to keep their teams running organizations with the healing and quick connection that modern organizations expect, according to people in the know, the deal between the google and SpaceX could last seven years before this google would have spent large sums of money setting up a private fiber-optic network to connect their data centers.
Profile clients like Goldman Sachs and snap google, however, aren't the only cloud company eager to work with Starlink Microsoft has courted SpaceX to bring Starlink internet connectivity to its modular blue cloud data centers that customers can deploy across anywhere, however, this model will still involve Google because data from a customer's blue modular data center would still pass through the styling satellite and end up in Google's data center before moving to other cloud services, while SpaceX seeks partnerships in the aviation sector too.
If you've ever wished for low-latency, half-gigabit Internet connectivity during a flight, Musk said on Twitter that he's talking to commercial airlines to make his wish come true,
Do you have any plans to make Starlink available on any airlines?
— Harrison 🚀 (@harrison_astro) October 14, 2021
he confirmed this directly when a fan asked him if he had plans to make Starlink available on airlines, however, even before musk's tweet, SpaceX vice president Jonathan Hoffler admitted that his company was in talks with several airlines to add wi-fi StarLink onboard, according to the executive that Spacex had already demonstrated the technology and could launch the products soon. explained how StarLink would provide fast internet to in-flight passengers, as Starlink provides a global mesh, any airline flying under the global mesh will have connectivity wherever it goes.Yes, we are talking to airlines about installing Starlink. Please let them know if you want it on your airliner.
— Elon Musk (@elonmusk) October 14, 2021
Low latency ~half gigabit connectivity in the air!
This style of business will grow quickly for SpaceX, which is currently making dishes between $1,300 and $1,500, meaning they are eating the loss of all dishes, however, with their recent advance that cuts the cost of production by half. , platter losses are reduced and SpaceX can recoup its investment faster through monthly subscriptions when SpaceX switches to the new platter design, which can help increase production volume, economies of scale will be set to helping SpaceX cut the production cost, along with potential advances, could get to a point where the production cost is below the $499 that SpaceX charged for the board at that point.
SpaceX may decide to reduce the cost even further to increase its customer base or consider the difference as pure profit if SpaceX can increase production to one million plates by 2022, which would represent $500 million in revenue just for plate sales and another $100 million a month in this scenario io SpaceX will take a maximum of two years to turn Starlink into a billion-dollar business and print money. This partnership with Google and the airlines will greatly help SpaceX as it will introduce corporate customers into the SpaceX mix.