In the latest consolidation in the IT industry at the top tier, HP announced a definitive agreement to purchase IT services company EDS for $13.9B. There are many views on why HP would make this move, but to me the obvious play is in the “cloud” computing model that is emerging. EDS’ principal business is in the outsourced operation of data centers and it’s only a small step from outsourcing to cloud sourcing.

What’s the cloud you ask? It’s pretty simple, it’s when a business makes the choice not to own and operate its own computing infrastructure and instead procure compute cycles and storage from networked based services. The best present examples are Amazon’s EC2 and S3 compute and storage services at an infrastructure level and Salesforce.com at the application level.

While there is an obvious revenue combination and cost synergy, the basis for this acquisition really is to allow HP to establish a leading position as businesses, particularly small businesses, they migrate toward consuming network-based computing services.

In fact, small farms are the most productive on earth. A four-acre farm in the United States nets, on average, $1,400 per acre; a 1,364-acre farm nets $39 an acre. Big farms have long compensated for the disequilibrium with sheer quantity. But their economies of scale come from mass distribution, and with diesel fuel costing more than $4 per gallon in many locations, it’s no longer efficient to transport food 1,500 miles from where it’s grown.

Read more…

The only thing that bothers me about the small farm/large farm comparison is the ability of the farmer to make a living. On the 1,300 acre example, the farmer is bringing in around $53,000 per year. On the 4 acre example, it’s about $5,600 per year. If farming is a part-time gig on the 4 acre plot, that’s a nice side income stream. But, it’s clear that the small farmer needs to be working at a 10x scale in order to be able to hit viability from an economic stand point. No doubt as energy prices increase, the local farmer will benefit. But how much?

Shifting subjects, the dolts in Washington still don’t get it – energy independence === national security. Do you really think the US is immune from food riots? Just wait, as more people drop below the poverty line and their ability to procure food is further crippled, people are going to expect solutions. Certainly this excellent article points out the benefits of smaller, local, fresh ingredients and that has to be part of the solution. But defining a safe, sane, and sustainable energy policy is another part of the solution.

Mr. McCain, Mr. Obama, what do you propose? We’re listening….

HT: Bob

The one place on the internet where you can see live, uncensored cat action (SFW)…In addition to the usual sorts of things you might expect from a cat pornography site, there are “Cats Gone Wild,” “Candid Peeps,” and “Toy Story” sections among, many, many others. And of course, no site like this would be complete without the opportunity to purchase crap with the Live Nude Cats brand pasted all over it…I nearly splut my drink through my nose when visiting yesterday.

One of my favorite net sites is Hacked Gadgets – I’m endlessly entertained by the devices posted there. Over the weekend they started running a contest to guess what the machine pictured above isn’t. Leave a comment on the entry and the most creative entry wins a mini-R/C helicopter. It’s less about the prize and more about the entertainment value. Enjoy!

For all you hard working Moms out there, have a great day! Remember folks, every Mother is a working Mother…