Earlier quoted context omitted.
I would rethink that if I were you. What if you started to provide virtual private servers on one of these boxes instead of offering colocation? I think this innovation makes VPS solutions even more efficient than they are today.
hm. the price data would show it's not more efficient in terms of capital. $140K, right? before disk? for 1024GiB ram and 512 CPUs. with my current setup, I end up paying about $1900 for 32GiB ram and 8 (/much/ more powerful) CPUs before disk. So, I'd need 32 of those puppies, at a much more reasonable $60,800 - it would give me half as many CPUs, but, uh, from my experience a atom core is less than half a opteron co…
If your power consumption figures are right, it would take 46 years to make up the difference at 10 cents/kW h. As I recall, you'd divide that by half for the cost of cooling, and then you'd have to figure in the lower capital costs of requiring 1/2 the cooling.
Also possibly subtract some network hardware. The box provides "Up to 64 1 Gbps or 16 10 Gbps uplinks". And it may be more "server grade" than your setup, it integrates load balancing and server management; at the very least, the hotswap granularity is smaller.
That still sounds off, except for companies that are running out of machine room space (the type of premium you pay for a laptop).
How sure are you of your alternative's power consumption? I.e. have you hooked one up to a Kill-A-Watt meter? They claim 1/4 of the power of "today's best in class volume server".
I think we're obsessing too much on the "$139,000" figure, if you look at http://www.seamicro.com/?q=node/38 you'll see there are so many options (1 or 2 GB per CPU, Ethernet and storage cards, possibly/likely some cost for the optional hot swap disk physical infrastructure, etc.).
To make a good comparison you'd need to figure out and price a system including load balancing and network hardware, measure it for real and contact SeaMicro to find out the real price for a comparable system from them. Plus until they work through their backlog they won't be too eager to discount....