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Ask HN: Is your company sticking to on-premise servers? Why?

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Re: Ask HN: Is your company sticking to on-premise servers? Why?

#401
We're in the process of moving a greenfield project from AWS to a more traditionally hosted solution.

AWS turned out to be 5-10 times more expensive; what's worse, our developers are spending more then half their time working around braindead AWS design decisions and bugs.

A disaster any way you look at it.

There are good reasons to chose AWS, but they're never technical. (Maybe you don't want to deal with cross-departmental communications, or you can't hire people into a sysadmin role for some reason, maybe you want to hide hosting in operational expenses instead of capital, etc.)

Re: Ask HN: Is your company sticking to on-premise servers? Why?

#402
- cost, as well evidenced in other comments here. The hyperscalers are orders of magnitude more expensive than dedicated hosting or using collocation providers.

- lock in, all the hyper scalers want to sell you value add services that make it hard or impossible to move away.

- concentration risk, hyper scale providers are a well understood target for malign actors. It’s true they are better protected than most.

- complexity, if you think about how little time the hyperscalers have been operating in comparison with corporate IT they have created huge technical debt in the race to match features.

Re: Ask HN: Is your company sticking to on-premise servers? Why?

#404

Earlier quoted context omitted.

What kind of setup did you have for 5 servers at $50/mo on AWS? Interested to know - our EC2 instances that are about 1/4 as powerful as a laptop cost $60+/mo

Certainly nothing powerful :-) I can get away with t3.nano and t3.micro for what I'm doing at the moment. But the beauty of cloud, is that I can scale up when I eventually need it. 5x t3.nano will be ~$25/mo 5x t3.micro will be ~$50/mo All of my AMIs are EBS optimized and require a minimum of 8GB for the root drive (Although they only use ~1.6GB. Not bothering to hack around this to save a buck.) So that'll be 40GB E…

That's exactly the reason I gave up on AWS, I need an accountant to do the math every month :D

Now I rent a 4GB Linux box for 5$/m with no Dockers or whatsoever and happy that it just works

Re: Ask HN: Is your company sticking to on-premise servers? Why?

#405
CEO of an AI startup & former AWS employee here.

The cloud sucks for training AI models. It's just insanely overpriced in a way that no "Total Cost of Ownership" analysis is going make look good.

Every decent AI startup––including OpenAI––has made significant investments in on-premise GPU clusters for training models. You can buy consumer-grade NVIDIA hardware for a fraction of the price that AWS pays for data center-grade GPUs.

For us in particular, the payback on a $36k on-prem GPU cluster is about 3-4 months. Everything after that point saves us ~$10k / month. It's not even close.

When I was AWS, I tried to point this fact out to the leadership––to no avail. It simply seemed like a problem they didn't care about.

My only question is why isn't there a p2p virtualization layer that lets people with this on-prem GPU hardware rent out their spare capacity?

Re: Ask HN: Is your company sticking to on-premise servers? Why?

#406
Sure, for tiny intel servers it makes sense to rent vms. It won't start to hurt until 1.5 years later at which point the project needs to become profitable anyways.

I run a couple of on-premise xeon gold machines with 96 gb ram and 40+ cores on each. Their total purchase cost was the monthly cost of renting them on the cloud. Also, you will never get the full benefit of the servers you use unless they are dedicated instances with no virtualization layer.

Re: Ask HN: Is your company sticking to on-premise servers? Why?

#407

Earlier quoted context omitted.

You pay for cross-AZ Traffic in AWS, and that adds up really fast.

Yep. Got bitten HARD by this recently, $1.5k inter-az transfer charges that we never saw coming. Our fault, I suppose -- but multi-az is prohibitively expensive if you need to run anything data heavy distributed.

I'm working on reducing a $50K per month bill for Inter-AZ traffic at the moment.

> but multi-az is prohibitively expensive if you need to run anything data heavy distributed.

If you communicate between your AZs via ALBs, multi-az is effectively free. Our bill is so high because within our Kubernetes cluster, our mesh isn't locality aware; it randomly routes to any available pod. 2/3rds of our traffic crosses AZs.

Re: Ask HN: Is your company sticking to on-premise servers? Why?

#408

Earlier quoted context omitted.

We're a small business and hosting costs are killing us. Spending $300+ on a small VM that I can only describe as measly really hurts.

I have recwntly put together a K8S clyster out of old and bargain basement hardware for hosting personal projects. Equivalent perf. from big cloud would cost me $ 400++

Similar situation here but on a bandwidth level. A 1Gbps leased line costs me ~400 bucks a month and is unmetered even if I keep it saturated for the entire month. I don’t even want to imagine the cost of that on a cloud provider.

Re: Ask HN: Is your company sticking to on-premise servers? Why?

#409

Like many others have pointed out: Cost. I'm the CTO of a moderately sized gaming community, Hypixel Minecraft, who operates about 700 rented dedicated machines to service 70k-100k concurrent players. We push about 4PB/mo in egress bandwidth, something along the lines of 32gbps 95th-percentile. The big cloud providers have repeatedly quoted us an order of magnitude more than our entire fleet's cost....JUST in bandwid…

I remember a post here a while back from a guy running Bitcoin mining in his dorm room. One day he realized he could offer his spare cycles to grad students with high computing workloads and undercut cloud computing prices while increasing what he made far over just mining. It's very weird that we haven't fully arbitraged $/instruction to a single (low) price yet (or storage/hosting, whichever). If only there were an…

> If only there were an Uber for unused cycles or storage... let everyone turn their unused capacity into mini AWSs with a common interface and safety and reliability guarantees.

Funny, this was our idea with first startup 18 years ago, federation of unused storage and redistribution. There were no takers as no one wanted to contribute their unused storage but wanted others. It was much easier to centrally locate our own storage and allocate to users who required it.

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