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Dropbox saved $75M over two years by building its own infrastructure (2018)

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Re: Dropbox saved $75M over two years by building its own infrastructure (2018)

#21

I remember Gitlab blogged that they are going to use baremetal instead of Azure with some numbers showing benefit of doing so. AFAIK they quickly reversed decision and didn't even try to implement that plan, moved to GCP instead.

I'm not privy to any particulars specific to GitLab's situation, but it's possible that a little sabre-rattling caused a better deal to appear which changed the calculus on migration.

Re: Dropbox saved $75M over two years by building its own infrastructure (2018)

#22
This can be generalised to “having a deep understanding about your tech stack is good and profitable”. Spotify did the opposite and went from a complex peer to peer design to a “throw everything in an s3 bucket” design because the underlying business assumptions changed (among other things, p2p didn’t work on mobile). So yeah. I think the lesson here is stop making excuses and go compile a Linux kernel or something.

Re: Dropbox saved $75M over two years by building its own infrastructure (2018)

#23
post #6

Just as a reminder: You are not Dropbox. You personally need to run the numbers with both scenarios. Depending on your use case, it may be cheaper to be in AWS, and it may be cheaper to be co-located. If you are as big as Dropbox, it may be cheaper to build your own data center. It reminds me of the arguments for and against K8s. Most of the discussion is based on use case, and not considering the solution space for…

>You are not Dropbox

That may actually work the opposite way. The big guys can negotiate pricing with the cloud providers to the point where they may be running at close to cost. It's the small and mid tiers that get hosed with cloud pricing.

>You personally need to run the numbers with both scenarios. Depending on your use case, it may be cheaper to be in AWS

I'm not sure about that. Certainly cloud infrastructure provides a level of flexibility which may be advantageous if you're going through high rate of growth. Outside of that, I'm not sure you'd see any cost savings.

Re: Dropbox saved $75M over two years by building its own infrastructure (2018)

#25

Dropbox is a unique case where majority cost is storage/bandwidth by one product/team. If you have a large organization where cost is divided in 100s of teams and products, cloud (vendor/managed) will be beneficial in removing lot of bureaucracy.

Not sure how you reached that conclusion. At an org where every sub-org has their own junk in AWS a new and uniquely hideous type of bureaucracy springs into existence in order to manage/dictate which VPC is allowed to talk to which other VPC and how.

Re: Dropbox saved $75M over two years by building its own infrastructure (2018)

#27
post #2

Does anyone know what the break-even point is for building/managing your own infrastructure, vs. using cloud services? I'm also curious - what's the rough time/cost of moving to your own infrastructure? I'm sure it depends on lots of things, but looking for a ballpark. 1 year + 10 engineers? 5 years + 100 engineers?

I mean, the more important question for me is, is running your own infrastructure something that should be a core competency. For Dropbox, the answer seems like an obvious yes. I mean, virtually their entire product is around data storage. I would be shocked if they COULDN'T save money to build a storage system tailored to their needs.

It’s also a lot of cold storage, low iops, moderate throughput. Not high performance compute with random high iops.

Of course it’s cheaper. Compare the cost of an enterprise NAS vs external hdd from bestbuy. It’s a similar comparison here

Re: Dropbox saved $75M over two years by building its own infrastructure (2018)

#29
"Cloud" handles the problem of people who buy based on who takes them out to lunch, buy based on wanting to have bragging rights, buy based on the idea that "nobody ever got fired for buying Dell / HP / whatever".

Sure, you can buy and colocate a dual processor Xeon Platinum bought from Dell, but when you can get significantly more than twice the performance per dollar buying an Epyc system, it's stupid to do it.

Stop comparing "cloud" to bad business decisions, and start comparing it to business decisions which would be made by people who want to get things done without ego.

Re: Dropbox saved $75M over two years by building its own infrastructure (2018)

#30
post #19

I think this quote really hits the nail on the head and confirms what a lot of people may have intuitively known about the value of cloud providers: But once certain startups turn into big companies with hundreds of millions of users, with computing needs that they’ve come to intimately understand, it can be far more efficient to set up computing infrastructure designed exactly with those needs in mind. I think the m…

There are not a lot of those companies which are that big. You also might not want to manage that many it experts for your infrastructure or you are not able to get them. Also if your companies product is very technical, i would argue that those companies are much better equiped doing it by themselfs then others. Nonetheless, it also doesn't need to be all or nothing. You can easily combine a MultiCloud approach. Bui…

> Nonetheless, it also doesn't need to be all or nothing. You can easily combine a MultiCloud approach.

There may be reasons to go multicloud but ease isn’t one of them. You double your infra support overhead (or more likely, half its quality) and have a “least common denominator” experience.

The natural tendencies of large organizations is a diffusion of investment but the cheapest costs frequently come from a concentration of investment.

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