Plenty of Fish Says Scaling for Free Doesn't Pay

Plenty of Fish CEO Markus Frind, famous nerd hero for making over $10 million a year from Google ads on a free dating site he made and ran all by himself, now sees a problem with the free model:

As one commenter succinctly put it: the “golden time” of AdSense is over. Time to look at costs. The POF architecture is to run scarily huge tables on single machines. They also buy and maintain their own SAN. So it seems scaling up is what is increasing costs and decreasing profits.  I wonder if the economics of cloud storage and cloud architectures might have a more linear cost curve?