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The cost of cloud, a trillion dollar paradox (2021)

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Re: The cost of cloud, a trillion dollar paradox (2021)

#71

Interesting to see this article again since it was the trigger of starting a homelab for me. After realizing cloud services are putting a major dent in my pocket to get a lousy startup idea off the ground, I started to wonder if there's "The Cheapest" way? (I'm not cheap but I'm very frugal) Nowadays internet speed is great to do self hosting. I have a business line internet at home with ~1gb up&down! Bought couple o…

After this talk [0] I had several most interesting conversations with media folks about the real cost and advantages of "cloud". One thing that came up is development. Modern devops culture is quite a good thing, and what's lovely about "cloud" - as in the ability to quickly buy compute and storage capability - is that ideas you would have tinkered with in on-prem labs (or across private sites) for months can be imag…

What do you mean by asymmetry?

Re: The cost of cloud, a trillion dollar paradox (2021)

#72

Interesting to see this article again since it was the trigger of starting a homelab for me. After realizing cloud services are putting a major dent in my pocket to get a lousy startup idea off the ground, I started to wonder if there's "The Cheapest" way? (I'm not cheap but I'm very frugal) Nowadays internet speed is great to do self hosting. I have a business line internet at home with ~1gb up&down! Bought couple o…

I'm always curious about the power cost here. Everyone I've talked to who runs servers at home either lives in a low COL area where electricity is cheap (and electricity is dirty, but I don't really want to get into that) or just pays the power as a sort of "cost of playing around" which is completely fair (it's not like I need to use my table saw at home.) Most folks I know who run servers use a lot more power than…

My rack draws around 750W at mid-idle (not totally idle but not doing anything big either). I have about $0.14/kWh delivered electricity cost in southwest Ohio. This means the rack costs me approximately $77 per month or approximately $920 per year. That's not a particular small cost, but it is far less than I would pay to host the same things at a professional data center, or shivers the cloud.

If I really wanted to optimize for power efficiency, I could do much better. I've seen decent homelab setups (with NAS, router, switch, and some slow compute nodes) that run under 100W, which would cost me only $10 per month in power, and would be far more powerful than a small DigitalOcean droplet.

Re: The cost of cloud, a trillion dollar paradox (2021)

#73
post #69

Earlier quoted context omitted.

> keep us locked into using Cloud APIs to do our jobs I love that we can use Cloud APIs to do our jobs. That's piles better than negotiating with (and waiting for) an Ops team to provision you hardware or networking that you don't have much visibility into and then relying on them to troubleshoot. I don't mind paying more for that (which you absolutely do on a per-unit of compute, network, or storage).

Don't get me wrong, I love using them too. They are great for getting something setup quickly when you are getting started. I use some cloud services that support my single datacenter rack I have today. For my expensive workloads, I run them off three beefy bare metal servers in my rack. I'd argue you have less visibility on what is going on at a cloud provider than you did in the past with your Ops team. Support tic…

From the developer angle? I'm not so sure. It's an N of 1, but I ran the Ops team for an e-commerce company that you're 50/50 likely to have heard of. I'm proud of how skilled and hard-working my e-comm systems/storage/network/DBA/DC-ops team of around 20 was, and the overall very good operational results we delivered.

Even with that, AWS's out of the box offering utterly dominates what we could offer as a medium-sized operation. You might have 5 arbitrary points' worth less visibility behind the scenes, but you need 15 fewer points of visibility behind the scenes. (We're also on enterprise support and have an excellent support & solution architecture team attached to our account, but even for my side projects where I have no support plan whatsoever, I have enough visibility into how to make things work.)

Re: The cost of cloud, a trillion dollar paradox (2021)

#74
post #13

Look - if you can optimise your workload over a capital cycle cloud is not for you. Especially if you are a technology company and have the bandwidth to deal with servers and ISV's properly. If you are a changing, growing, non-technology company then cloud is the place you should be. You will get screwed by Oracle, you will get screwed by Accenture. You will not be able to optimise your workload and you may as well g…

Good luck getting the time of day from Oracle or Accenture if you are not already quite a large established company. Not that you want it anyway though.

Time of day? Sign this $10M contract.

Re: The cost of cloud, a trillion dollar paradox (2021)

#75

> A billion dollar private software company told us that their public cloud spend amounted to 81% of COR, and that “cloud spend ranging from 75 to 80% of cost of revenue was common among software companies” I find that quite hard to believe. I mean, I can see that if you were selling cloud backup services and stored customer data on S3, I can understand S3 costs being a big part of your budget. But for the vast major…

This is high, unless you are a platform as a service, effectively selling the compute on to customers. Add on the free tiers subsidy (for growth!) and it make sense then.

If you are selling just software and 80% of that is on the cloud you are undercharging or wasting crazy resources.

Re: The cost of cloud, a trillion dollar paradox (2021)

#76
post #72

Earlier quoted context omitted.

I'm always curious about the power cost here. Everyone I've talked to who runs servers at home either lives in a low COL area where electricity is cheap (and electricity is dirty, but I don't really want to get into that) or just pays the power as a sort of "cost of playing around" which is completely fair (it's not like I need to use my table saw at home.) Most folks I know who run servers use a lot more power than…

My rack draws around 750W at mid-idle (not totally idle but not doing anything big either). I have about $0.14/kWh delivered electricity cost in southwest Ohio. This means the rack costs me approximately $77 per month or approximately $920 per year. That's not a particular small cost, but it is far less than I would pay to host the same things at a professional data center, or shivers the cloud. If I really wanted to…

I looked into cloud, but it's just not really feasible. It really is possible to do a lot with a little at home.

I'm using about 60-100W for my home-prod, and a lot of it is "older". I'm running about 15 small VMs at any given time these days, and probably 20 containers.

I think my biggest single draw is the Mikrotik CCR1036 in the garage, but it saved me from buying new gear. Sure there's a break even point with hydro, but that's years in the future when the device is free. It's also pretty fun to watch VPN connections testing at 700Mbps from home.

I don't really care about uptime, and I've got gigabit fibre to the house, so bandwidth isn't a huge problem. It worked fine on 300/60Mb cable too.

Ryzen 3 2200G, 32GB RAM, 1T NVMe, 10TB HDD. This one runs services.

Orange Pi 5 16GB with another 500GB NVMe. This runs redundant services and monitoring.

Re: The cost of cloud, a trillion dollar paradox (2021)

#77
post #62
post #41

Earlier quoted context omitted.

Depends on what "taking off" means for the start up too. Taking off at a mass consumer scale might need that flexibility, taking off and even getting to market saturation in a specific B2B might be achievable on a raspberry pi level hardware. There are many more of the later.

Any business that you can run from a home server with a residential business line is not the kind of business we are talking about here. Yes, you can potentially serve a lot of customers with that setup, but your reliability story is terrible so you better have very forgiving customers. What if your internet goes out? Even with a business line, I've had to wait five days for them to replace a fiber line that a squirr…

    Any business that you can run from a home server 
    with a residential business line is not the kind 
    of business we are talking about here.
What kind of business are we talking about here? What does the "taking off" in your previous post mean, exactly?

Depends on what you're trying to do.

You are not going to be able to run a Netflix competitor out of your garage.

You're not going to get high availability without some significant investment and even then you'll be at the mercy of whatever your ISP is doing upstream in the event of a power outage. I live in an area where we average something like 99.99% power uptime, but not everybody is so lucky.

You could, potentially, host something that serves up something non bandwidth-intensive to tens of thousands of users, give or take an order of magnitude. (SaaS, APIs, etc) You can do a lot of interesting things with a homelab and some of them are potentially profitable.

Perhaps more crucially: you're not exactly locked in to a homelab. You can start with that and once you reach a certain point, migrate to colo or cloud.

Re: The cost of cloud, a trillion dollar paradox (2021)

#78
post #71

Earlier quoted context omitted.

After this talk [0] I had several most interesting conversations with media folks about the real cost and advantages of "cloud". One thing that came up is development. Modern devops culture is quite a good thing, and what's lovely about "cloud" - as in the ability to quickly buy compute and storage capability - is that ideas you would have tinkered with in on-prem labs (or across private sites) for months can be imag…

What do you mean by asymmetry?

Maybe the most demonstrable is egress/ingress bandwidth. But since there's a power asymmetry when dealing with mega-corporations I had other asymmetries in mind too.

Re: The cost of cloud, a trillion dollar paradox (2021)

#79

Interesting to see this article again since it was the trigger of starting a homelab for me. After realizing cloud services are putting a major dent in my pocket to get a lousy startup idea off the ground, I started to wonder if there's "The Cheapest" way? (I'm not cheap but I'm very frugal) Nowadays internet speed is great to do self hosting. I have a business line internet at home with ~1gb up&down! Bought couple o…

I'm always curious about the power cost here. Everyone I've talked to who runs servers at home either lives in a low COL area where electricity is cheap (and electricity is dirty, but I don't really want to get into that) or just pays the power as a sort of "cost of playing around" which is completely fair (it's not like I need to use my table saw at home.) Most folks I know who run servers use a lot more power than…

My quarter rack Home lab in my basement is pulling 133 Watts right now with a low power 1U Supermicro SOC, an older Supermicro mini tower used as a NAS, and my networking gear and Internet modems. I don't have any intense workloads running at home. I was really power conscious when buying my two home servers as I know it is very easy to buy a beefy server off of Ebay that sounds like a jet engine 24/7 and pay out the nose on my home power bill.

Re: The cost of cloud, a trillion dollar paradox (2021)

#80

Martin Casado is one of the smartest people I've met in my career in IT (AWS, VMware, etc). This phrase is key: "You’re crazy if you don’t start in the cloud; you’re crazy if you stay on it" Perhaps I'd say that "you're crazy if you keep all your IT on it, as you scale". There's still a case to be made for a small % of your workloads in the cloud. The flexibility is priceless. But for everything else, there's a well…

> "You’re crazy if you don’t start in the cloud; you’re crazy if you stay on it"

This doesn't help much.

It doesn't talk about hybrid.

What about AI. Do I go buy a bunch of H100s at peak price when something better/cheaper might be out in 3 years. What if my load is spikey.

It should be perhaps "You're crazy if you are not strategic with cloud vs. on premise spending"

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