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Is the Cloud Recession-Proof?

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11–20 of 116 posts

Re: Is the Cloud Recession-Proof?

#11
post #2

Definitely not. My company has been drastically scaling back our AWS spend and I mean about a $10m+ a month reduction. I guarantee we're not alone. All the gee-whiz resume-driven-development type project infrastructure was the first to go lol.

having a hard time to see how you scale down 120 mil a year. How much you spend yearly now

Re: Is the Cloud Recession-Proof?

#13
post #2

Definitely not. My company has been drastically scaling back our AWS spend and I mean about a $10m+ a month reduction. I guarantee we're not alone. All the gee-whiz resume-driven-development type project infrastructure was the first to go lol.

For those wondering as well, at 10b quarterly revenue, 10m monthly is ~.3% of all AWS revenue.

Re: Is the Cloud Recession-Proof?

#15
post #2

Definitely not. My company has been drastically scaling back our AWS spend and I mean about a $10m+ a month reduction. I guarantee we're not alone. All the gee-whiz resume-driven-development type project infrastructure was the first to go lol.

For those wondering as well, at 10b quarterly revenue, 10m monthly is ~.3% of all AWS revenue.

It seems likely to me that a recession or pandemic affects more than just the OP's business, so while that one customer is probably meaningless to AWS, the thought process that led to scaling back spending could be meaningful.

Re: Is the Cloud Recession-Proof?

#16
The "cloud" has always held a fluid definition. If you ask someone "what's the cloud?" you'll get different answers depending on who they are. So, just being a generic term makes it to give this a clear "yes" or "no" answer.

What should be clear is that anything denoted by "cloud" quite literally comes down to leveraging computing power provided by someone else in one arrangement or another.

Anyone providing or relying on a "cloud-based" service is directly part of a marketplace and it's innate dynamics which includes recessions and the complex fashion in which those play out.

While it's highly unlikely to see Amazon shutter AWS overnight because demand implodes entirely, I wouldn't be surprised to see changes in their pricing or offering to offset macro-economic effects in the long term.

The other side of the spectrum would be specific niches disappearing. For instance, small companies that leverage cloud infrastructure and resell hosting as an offering to small businesses. Many of them might find themselves out of business if their customer portfolio consisted of recession sensitive businesses as well.

Re: Is the Cloud Recession-Proof?

#17
post #11
post #2

Definitely not. My company has been drastically scaling back our AWS spend and I mean about a $10m+ a month reduction. I guarantee we're not alone. All the gee-whiz resume-driven-development type project infrastructure was the first to go lol.

having a hard time to see how you scale down 120 mil a year. How much you spend yearly now

It’s probably not for the entire year, a lot of it is just various clusters being scaled back. That said some of the stuff has been moved to colo hardware, and some of it is probably just gone forever.

Re: Is the Cloud Recession-Proof?

#18
post #2

Definitely not. My company has been drastically scaling back our AWS spend and I mean about a $10m+ a month reduction. I guarantee we're not alone. All the gee-whiz resume-driven-development type project infrastructure was the first to go lol.

And here I was pretty proud of myself for reducing our monthly bill from $5K a month to $2K… we have some basic sports data APIs that are hardly being used since there's no live sport being played, so I've removed most of our redundancy for the time being.

Re: Is the Cloud Recession-Proof?

#20
post #19
post #14

Yup. The way cloud sales works makes it seem almost impossible to justify restructuring your infrastructure to your management. It's a genius sales strategy.

Can you explain how that works please?

The short version is lockin. Unless you get very careful ops engineers making it truly cloud-agnostic, you can't even move from AWS to GCP without a huge amount of overhead.

I'm a contractor and several of the companies I've worked with recently have almost hard-coded their services to expect certain things available to them on GCP or AWS that aren't as easily available on the other.

You can argue that they should use 12facter and real DevOps and portability and so on but that's just not what people are actually doing so they've locked themselves in and for companies that are struggling to pay their hosting bill already, saying "We need 3 months of 6 developers' time to move" isn't going to go down well.

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