51–60 of 218 posts
Not very surprising. Cloud infrastructure is flexible, but very expensive - certainly much more expensive than hosting your own servers.
But why run servers when you can just put your workloads in lambdas. That's a huge money saver, unless you're hosting video games.
So they saved next to nothing? Their yearly operating expenses are in the order of $1.3B, which doesn't even include cost of revenue. $75M savings versus $2600M operating expenses over those 2 years comes out to about 2.8% savings.
One thing that has always stuck with me after an AWS training session I attended at work is what the trainer said: "The cloud isn't necessarily cheaper, but it's usually better value for money". It's something to always remember.
The issue is that people use the cloud as just another random VM to run their software.
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…
I would say as someone who supports lots and lots of apps that cloud services are usually financial winners in a SaaS perspective and in a rapid growth scenario. Nobody can deliver Exchange cheaper than Microsoft. My team stood up apps for covid related activity for 20-40% of the cost and more importantly type than services under our organizations control.
That said, for what I would call "base load" scenarios, in many scenarios it's exactly the opposite.
So they saved next to nothing? Their yearly operating expenses are in the order of $1.3B, which doesn't even include cost of revenue. $75M savings versus $2600M operating expenses over those 2 years comes out to about 2.8% savings.
That's objectively still a lot of money that can pay for a lot of things.
In one case, you pay a premium so that somebody else worries about all details and maintenance, and in the other, you take on that burden but don't pay the premium. This has always been true for everything where a service is provided to you.
Great if your needs are small or not well known because there is no initial investment, but bad in the long run.
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…
colo'd datacenter or 'off brand' cloud provider can easily be much cheaper than the big 3, still get you out of 'dealing with hardware' and either way you are still 'setting up infrastructure' in terms of developing software management tools for your system
Earlier quoted context omitted.
If you see it from the perspective of being able to retain staff or hiring new employees, it definitely seem worth it.
Except now you have to hire a staff to maintain and manage hardware, batteries, generators, buildings, security?
So they saved next to nothing? Their yearly operating expenses are in the order of $1.3B, which doesn't even include cost of revenue. $75M savings versus $2600M operating expenses over those 2 years comes out to about 2.8% savings.
2.8% of a big number is still a bigger number than 2.8% of a small number. Not sure what point you're trying to make here...