I admittedly am no expert in computing hardware, enterprise server management, or solid state disk drives, but if Markus Frind is correct about coming advances in hardware it may make a lot of the newer web businesses profitable in the next few years, or at least move them from losing money into profitability.
Whether or not this particular situation is true, it was a good reminder to me that we can’t get too stuck in our current way of thinking about web businesses. An unprofitable business model today could be wildly profitable tomorrow. A company could start out making a game and end up making a wildly successful photo sharing service (Flickr). Advances in hardware, technology, APIs, and the way people use the web are all changing so rapidly the most successful people and companies will be the ones who continually adapt and stay one step ahead of the curve to have their business in place to strike when the iron is hot.