Let's turn to the Chromebook. Is that mostly a consumer play at this point?
We launch most of our products for consumers first to get traction, and then, over time, add capabilities to make them relevant to enterprises. We're just scaling distribution of the Chromebook now, making them available in 6,600 outlets. One place where we're seeing traction is with students. Some 3,000 school districts now use Chromebooks, and almost all of them also use Google Apps. So once they live in the cloud, collaborating using a pure cloud environment, the Chromebook is a great next step. And then within enterprises we have seen adoption in retail, and some companies are using them to deliver a virtualized desktop.
Last question: Where do you stand today with cloud and where do you need to go?
We've been in the cloud since we were formed as a company. Externalizing all of the data centers and networks for other people's consumption is what we're working on now. And we feel like we're actually quite competitive. We're seeing Amazon customers move, which is usually a good sign. They typically move for speed, scale and consistency. If you are an Amazon customer and have Netflix in the cage with you, you're kind of out of luck. We don't have that. We provision services across a very wide network, so a lot of people mention the consistency benefit. Having said all of that, we are still working hard on all the components, and the last major bit came out of preview at our I/O conference where the Google Compute engine was announced. So we have all the layers of our computing infrastructure available for developers anywhere.
Are there any other pieces that have yet to come?
Just filling out more pieces of the manageability of it, so Phase 1 was getting into the space with App Engine, which is our platform-as-a-service offering. We now have about 250 to 300,000 developers on App Engine. And over time we create storage and SQL and high performance data store and then Compute Engine.
At Google I/O we also introduced fractional billing. So you pay only for the percentage you use. If you use 15 minutes of VM time you pay for 15 minutes. Whereas with AWS, even if you only need the VM for 15 minutes, you pay for an hour.
So through the last couple of years we've worked on all of those little things that go into creating an enterprise product, billing, support, etc. Those are all in the product now.
Are you dedicating infrastructure to this, or is it the same infrastructure that powers everything else that is Google?
The same infrastructure. That's how it's different also. The same stack that runs Gmail and Search is what you can use as a developer to run your app.
And are you guys still building all your own stuff?
We do everything from scratch. We build our data centers, our networks, the software, how to manage them, all of that is done by Google Engineering.
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