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Amazon’s Chips Threaten Intel

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281–290 of 359 posts

Re: Amazon’s Chips Threaten Intel

#281
As much as it is easy to license from ARM and use TSM as a foundry, it does not make much economic sense.

Look at Google's purchase of Motorola. They ended up selling Motorola to Lenova.

The hardware industry and specifically the chip industry is very specialized. If your code competency is not chip making, it really does not make sense to try to enter the industry.

Re: Amazon’s Chips Threaten Intel

#282
post #191

Earlier quoted context omitted.

AWS has a few pain points in the cost department; especially Traffic is insanely expensive compared to other providers. Hetzner costs about 1$ per TB of Traffic. EC2 costs 88$ for that amount of outgoing data, Cloudfront 80$, etc. That's not even accounting that Hetzner doesn't bill incoming and internal traffic, which AWS does. There is no way that the little work I need to put up a network on a Hetzner host is wort…

This is a very interesting dynamic to me. Amazon seems to compete on price with EVERYONE on everything else, yet when it comes to AWS they’re so much more expensive than competition? Is this because their infrastructure is so much more expensive to run at 0 margins?

Their competition is mostly "old" guys who can easily and "cheaply" create and manage their own infrastructure.

In other words, when they "educate" young people about "The Cloud" and how is "The Best Way, the Only Way", they win because after a few years people got used to AWS as a fact of life and young professionals don't know how to administer a Linux box anymore.

Re: Amazon’s Chips Threaten Intel

#283
post #191

Earlier quoted context omitted.

AWS has a few pain points in the cost department; especially Traffic is insanely expensive compared to other providers. Hetzner costs about 1$ per TB of Traffic. EC2 costs 88$ for that amount of outgoing data, Cloudfront 80$, etc. That's not even accounting that Hetzner doesn't bill incoming and internal traffic, which AWS does. There is no way that the little work I need to put up a network on a Hetzner host is wort…

This is a very interesting dynamic to me. Amazon seems to compete on price with EVERYONE on everything else, yet when it comes to AWS they’re so much more expensive than competition? Is this because their infrastructure is so much more expensive to run at 0 margins?

Compare Amazon's (at least network) pricing to Google Cloud or Azure and its roughly competitive.

The scale of the networks these companies are building is unlike any of the novice-level stuff companies like Hetzner deploy. As one example, in one region AWS has deployed 5 Pbps of inter-AZ fiber. They build all of their own SDN switches/routers, all the way down to the chips now, for maximum performance and configuration with the AWS API. And don't forget, they maintain a GLOBAL private network; companies like Hetzner or DigitalOcean just peer to the internet to connect their "regions".

I'll keep saying this on HN until people start listening: If you buy AWS then complain about price, you might as well go buy a Porsche then complain about the price as well. They're the best. Being the best is expensive.

Re: Amazon’s Chips Threaten Intel

#284

In the near future we will see more and more chips coming from Asia. Not just final silicon production, test, and packaging, but also complete hardware design. They will produce GPUs, FPGAs, and CPUs of all classes. Look how many students in Computer Design, Digital Design, Electrical Engineering graduate every single year. Multiply that by low costs with high productivity and you will find Silicon Valley will face a…

I think we will also see proportionally more and more chips coming out of US companies as well. When Google started their own chips (TPUs), they just kickstarted a vertical integration race amongst the tech giants. Apple, Intel, Nvidia were the old players, Google is dipping their toes in with TPU, now Amazon and probably soon Microsoft and FB. I think overall we will see more chips from both Asia and US

Microsoft has been doing custom silicon longer than either Google or Amazon, as a part of the Xbox security-related functionality I believe. And then other consumer products like Hololens, custom pen ASIC in Surface, etc. Now Azure Sphere (more so giving away silicon IP to others, but still have their fingers in it.)

Edit: All this in addition to their widespread and well documented usage of FPGAs for Azure network offload and Bing acceleration.

Re: Amazon’s Chips Threaten Intel

#285

Earlier quoted context omitted.

I started my professional career in AWS so I have zero experience in non-cloud businesses (i.e the vast majority of software jobs), but I always wonder about the cost argument people make against AWS (or any major cloud provider). It's very easy to overspend, sure. But say we're considering how well you execute in terms of picking the right tools for your case and utilizing the right cost saving measures. In the opti…

You can buy a 16-32 core machine with 64GB Ram for less than a hundred bucks on Hetzner. You can run SmartOS, proxmox, danubecloud or whatever other solution there, and for some of them you should be able to use terraform. There is a little extra upfront cost to set these things up, but once you have it, it's fine. You can do your zfs snapshots to hetzners backup infrastructure. A lot of people try to throw all their…

buy as in own? Or rent monthly?

Re: Amazon’s Chips Threaten Intel

#286

Earlier quoted context omitted.

I started my professional career in AWS so I have zero experience in non-cloud businesses (i.e the vast majority of software jobs), but I always wonder about the cost argument people make against AWS (or any major cloud provider). It's very easy to overspend, sure. But say we're considering how well you execute in terms of picking the right tools for your case and utilizing the right cost saving measures. In the opti…

You can buy a 16-32 core machine with 64GB Ram for less than a hundred bucks on Hetzner. You can run SmartOS, proxmox, danubecloud or whatever other solution there, and for some of them you should be able to use terraform. There is a little extra upfront cost to set these things up, but once you have it, it's fine. You can do your zfs snapshots to hetzners backup infrastructure. A lot of people try to throw all their…

I do most of my work in large enterprises and there is definitely a point when you hit a complexity cliff managing your own systems. No one system causes this (major systems can often support a dedicated staff), but it looks like death by a thousand cuts when the HR interview system goes down after 7 years and no one is certain how to deal with its VMs/hardware/networking.

Re: Amazon’s Chips Threaten Intel

#287
post #101

Earlier quoted context omitted.

FYI, t3 instances have and option to either be throttld when you exceed your burst credit or just pay more for burst.

T2 offers this as well.

Oh you’re right! I’d missed the launch of t2 unlimited.

Looks like with t3 they’ve swapped the defaults. T3 now defaults to unlimited, t2 it’s an option.

Re: Amazon’s Chips Threaten Intel

#288

Earlier quoted context omitted.

Dozens of small companies (ranging from a couple of people to a couple dozen) rely on me to decide and direct their tech stacks; I always suggest something other than Amazon even where Amazon is suggested first by them; the vast majority defer to my judgement. I think I'm not only doing them a service by avoiding lock-in to AWS specific "stuff", but also our industry and society at large by maintaining software diver…

>Dozens of small companies (ranging from a couple of people to a couple dozen) rely on me to decide and direct their tech stacks; I always suggest something other than Amazon even where Amazon is suggested first by them; the vast majority defer to my judgement. so what do you recommend instead of Amazon?

GCP, Azure... I personally really like GCP, it’s optimized for simplicity and thus developer happiness.

Re: Amazon’s Chips Threaten Intel

#289
post #283

Earlier quoted context omitted.

This is a very interesting dynamic to me. Amazon seems to compete on price with EVERYONE on everything else, yet when it comes to AWS they’re so much more expensive than competition? Is this because their infrastructure is so much more expensive to run at 0 margins?

Compare Amazon's (at least network) pricing to Google Cloud or Azure and its roughly competitive. The scale of the networks these companies are building is unlike any of the novice-level stuff companies like Hetzner deploy. As one example, in one region AWS has deployed 5 Pbps of inter-AZ fiber. They build all of their own SDN switches/routers, all the way down to the chips now, for maximum performance and configurat…

GCP is a real contender for potentially less money. It’s better than AWS in some if not many verticals. So I wouldn’t say AWS is “the best” (definitely not in the UI and user-friendliness department)

Re: Amazon’s Chips Threaten Intel

#290

Earlier quoted context omitted.

Dozens of small companies (ranging from a couple of people to a couple dozen) rely on me to decide and direct their tech stacks; I always suggest something other than Amazon even where Amazon is suggested first by them; the vast majority defer to my judgement. I think I'm not only doing them a service by avoiding lock-in to AWS specific "stuff", but also our industry and society at large by maintaining software diver…

What alternatives to AWS could save a non trivial amount of money? Especially for RDS? I think we're getting to the point where servers cost quite a bit

Consider if most data in RDS should be in a data warehouse instead.

Google’s BigQuery can help offset costs. Not to mention GCP is now a strong contender to AWS’s offerings.

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