Earlier quoted context omitted.
>"Snap simply does not have the resources to pour into custom data centers, even if they can raise $2 billion for infra over 5 years." They have 1800+ employees as disclosed in their filing. So clearly people resources are not a problem for SNAP. Do you believe its not possible to build 4 datacenter - 2 US, 1 EU and 1 APAC datacenter for 2 billion dollars? These are tangible assets that you can depreciate as well. Th…
Disclosure: I work for Google, but nowhere near Cloud, and I have no knowledge of this deal. Quite apart from the dollar costs and human capital required to build and maintain a DC, there's the lead time required to build the thing, and I'd speculate that that's potentially a significant factor in Snap's decision. Perhaps Snap are looking at e.g. how quickly Pokemon GO scaled their operation, and they're thinking for…
Snap commits $2B over 5 years for Google Cloud infrastructure
281–290 of 311 posts
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#282Earlier quoted context omitted.
> And when EC2 falls over, like it tends to do a few times a year? Multi-AZ, multi-region complete failures are very, very rare. How often do you get a failure in your data center per year (that you notice)? > You're going to be writing a lot of the same fallover code if you're running on someone else's hardware, so why rent? The answer is in the question -- when rented things fall down and go boom™, your code runs a…
>Multi-AZ, multi-region complete failures are very, very rare. How often do you get a failure in your data center per year (that you notice)? First, if you don't notice some random/unexpected EC2 instance failures, you don't have a big EC2 deployment. Even though there is a lot of pomp and circumstance around the cloud, when it comes down to it, your instances are still on a physical server in a datacenter somewhere…
Because when something fails, you don't have to care about the "why" as long as you can replace it. I see about 4 instances needing a maintenance per month per 1000. That's reasonable enough to not demand someone be full-time focused on making sure that only the good lights blink on the hardware.
> The point is that even when you're using EC2, you still have to set all of that up. Contrary to popular belief, EC2 is not a panacea that can magically make your software reliable and redundant.
You're making a strawman by suggesting people think it's a panacea. The advantage is that a lot of the work, maintenance, and feature improvements for 'infrastructure as code' is handled for you. Cloud hosting means writing the software layer and being done, no managing the infrastructure services, facilities, hardware, business relationships involved with rack/stack.
> It's just a nice interface that makes it easy to rent servers from Amazon.
To be fair, it's a _very_ nice interface.
> I know EC2 et al are popular because people like buzzwords, but that doesn't make it good business (or does it? Investors love cloud because it keep capex low, and because investors are buzzword-driven like everyone else; saying "cloud" will make them like you more and want to give you more money).
If you think cloud hosting is popular because of op-ex or buzzwords, I think you're out of touch. EC2 and Google Cloud are popular because they let you focus on getting shit done, even when you have variadic workloads that are uptime dependent.
> For companies that are still in the garage (literally in the garage), shelling out $20/mo for a couple of cheap VPSes from something like DigitalOcean is going to be just fine. But once you get bigger than that, there's no way to avoid paying attention to this stuff, even if paying Amazon tons of money creates a false psychological connection that makes you think they're doing the work for you.
They _are_ doing a lot of work for you. You say $20 is the point that it makes more sense to self-host. I'll be charitable and round that up to $100, but even at that price, there is _no way_ you'll be able to get something as fault tolerant or low-cost as a cloud hosted solution. Do you really think that for $100 a month you can self-host geo-close servers with redundancy to the point that you don't have to think about it? Keep in mind that "two is one and one is none" when planning your hardware purchase.
> Vastly overallocating here.
No, that's conservative for a major US city (e.g. where Snap would be doing the hiring). Have you tried to pull a handful of really good system hackers out of thin air recently? Even if you can get them, they're not cheap, and you'd need a sizable team to pull off the highly-redundant world-wide install that Snap needs for its growth projections. It starts off expensive to hire good tech and gets more spendy the longer you're fishing.
And that's even ignoring the costs on productivity (for that and other employees) when an employee isn't happy or decides it's time to leave -- staffing also takes money and attention to maintain.
> And the added benefit of being a trendy tech company is that after your company creates some extremely specialized solution, you can open-source it and watch with an uncomfortable mix of amusement and horror as 90%+ of other companies's tech departments contort themselves into pathetic, desperate architecture pretzels so that they can become cool by abandoning a stable, proven, mature stack for your company's experimental, sputtering, duct-taped abomination that requires a PhD to even get to compile.
You seem like you're speaking from personal experience. Having a working infrastructure that isn't a barrier to growth isn't trendy or sexy, it's a base competency for any internet-reliant business model.
> Sure, but they don't have to set massive gobs of money on fire for no reason along the way. But then, I guess they wouldn't be part of the Silicon Valley family if they didn't.
This isn't setting "massive gobs of money on fire for no reason", this is going with a high-performance datacenter that someone else maintains. They clearly have something very big in mind and I doubt they made a multi-$bb commitment without asking themselves "are we lighting this money on fire?"
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#283Needing this amount of resources implies that Snap is expecting huge growth. This sounds like a really bad move on their part and they should have committed to building out their own infrastructure on 'bare metal' over the next 5 years instead. If you read their S-1, they list a dependence on Google cloud as one of their big risk factors. Yet they then go ahead and make this commitment instead of working towards elim…
Similarly, services like AWS provide companies with that type of infrastructure (data or internet in this case) so they can focus on building out features.
But to your point, it gets expensive at some point and I am surprised that Snap is still outsourcing this instead of having their own data centers. I guess it's because the CEO is not strong Technology-wise so the company is focused on Product?
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#284Needing this amount of resources implies that Snap is expecting huge growth. This sounds like a really bad move on their part and they should have committed to building out their own infrastructure on 'bare metal' over the next 5 years instead. If you read their S-1, they list a dependence on Google cloud as one of their big risk factors. Yet they then go ahead and make this commitment instead of working towards elim…
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#285Earlier quoted context omitted.
Bear Stearns didn't fail due to fraud, it failed due to not adequately tracking and assessing the risk of its assets. It is worth noting that there have been serious allegations made a few weeks ago against Snap that they are lying on the S-1.
Link?
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#286Many talking of software here, but at this scale I think we should be looking at the cost of energy. Suppose Google has a true edge on the rest of the market in terms of what the cost of a Watt is to them. Take that outlook over the horizon of 5 years; all software arguments are thereby moot. If Google can generate a Watt in 5 years at 10% the cost that AWS can, then this drastically changes the equation.
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#287Earlier quoted context omitted.
> Of course, maybe they got some killer promotional deal with Google For sure. How much is this free marketing that Google cloud service is getting worth? I'm pretty sure whatever discounted deal Google gave Snap is more than made up by this free marketing blitz they're getting.
Snap’s been a happy and public customer for some time, so any “free marketing blitz” would a) have essentially been used up before, and b) would truly have to be remarkable to work against some form of discount where the non-discounted remainder /still/ represents $2,000,000,000 over four years.
Also, there's a difference between something being public (like press releases) and actively generating buzz where lots of (relevant) people are actively talking about this.
I think if you were in a GCE sales meeting yesterday you'd have noticed a lot of people jumping up and down in joy. They've been playing second fiddle to AWS and in desperate catchup mode. Their next cold call got so much easier. Their next close got so much easier. Screw all that, their inbounds suddenly went through the roof. Lots of smaller startups etc. who would have never thought of Google cloud as an option are now seriously considering it. A lot of people who are already on AWS just signed up for GCE out of curiosity "just to see what the big deal is about". I don't think there's any way to overstate the impact of this news on Google Cloud's future.
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#288Earlier quoted context omitted.
It doesn't take "top talent" to run the physical side of the DC. It takes processes and detail-oriented people who care. At this point, with datacenters having been in wide production for the last 20 years, there should be plenty of 7+ year veterans. (though yes, I have known in-house service providers that couldn't set up a new VM to save their life)
Yeah, some of the stuff in this thread is crazy. Are all these people new or what? Not too long ago, running on bare metal was the only serious option (shared hosting is non-serious). Cloud might offer some conveniences (just because AMZ and friends have made it so easy to give them more money), but the alternative is not that hard!
I've seen innards of very large DCs for more than a decade. At one of my first jobs at a fortune 500, I was responsible for everything from rack and stack to the command prompt. The expected turnaround time for a single physical server was 4-6 weeks until the application could be installed on it! One of the reasons was that they did not have automated DHCP/PXE provisioning. I started the process to enable it.. going through all the political, security mess, it was 9 months until it was enabled. I was gone by then.
An extreme example for sure, but if AWS revenues are growing like they are, then surely such issues are everywhere to some extent.
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#289Earlier quoted context omitted.
>"Snap simply does not have the resources to pour into custom data centers, even if they can raise $2 billion for infra over 5 years." They have 1800+ employees as disclosed in their filing. So clearly people resources are not a problem for SNAP. Do you believe its not possible to build 4 datacenter - 2 US, 1 EU and 1 APAC datacenter for 2 billion dollars? These are tangible assets that you can depreciate as well. Th…
Disclosure: I work for Google, but nowhere near Cloud, and I have no knowledge of this deal. Quite apart from the dollar costs and human capital required to build and maintain a DC, there's the lead time required to build the thing, and I'd speculate that that's potentially a significant factor in Snap's decision. Perhaps Snap are looking at e.g. how quickly Pokemon GO scaled their operation, and they're thinking for…
By the time you build your infra (5 years was mentioned), Google would have iterated on their offering and their own network and data centers for 5 years.
(Work on Google cloud)