BillyS - 2:41 am on May 4, 2006 (gmt 0)

We could also assume that the folks at Google are, in fact, smart. I personally believe this... Something else that might be going on here is that we are taking what was said literally:

As Google grows, so does its need to store and handle more Web site information, video and e-mail content on its servers. "Those machines are full," Mr. Schmidt, the chief executive, said in an interview last month. "We have a huge machine crisis."

This statement could have been meant figuratively. Perhaps what he is stating is that all of the capacity they currently have is accounted for. Meaning it's already earmarked for a product / project. He may simply be pointing out the future need for even more infrastructure.