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Why cloud bandwidth is so obscenely expensive and what you can do about that

kerkour.com

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Re: Why cloud bandwidth is so obscenely expensive and what you can do about that

#5

Serious Q for big Cloud spenders - how much have you negiotiated egress down from the list price?

If you can sign a yearly bandwidth commit (not sure what the minimum bandwidth requirement is, but 1PB / year may be in the ballpark) - you will get prices that are extremely competitive (maybe like 90%+ off base list pricing?)

Re: Why cloud bandwidth is so obscenely expensive and what you can do about that

#6
TL;DR - author claims the hardest part of running a cloud PaaS is networking, thus the cloud providers charge you a ton for egress to outsource the optimization problem to you.

It's not clear to me this claim is true - they're in the business of solving exactly this optimization problem - and they have, they're just capturing maximum profit.

If it was really the hardest / most costly - then other providers wouldn't be able to offer it so much cheaper. It's clearly a solved problem.

This is just the knob the pricing departments found to be the one to dial to juice profits to the max.

The article seems like a puff piece to promote other providers.

But it could be useful to people shopping for cheap egress.

Re: Why cloud bandwidth is so obscenely expensive and what you can do about that

#7

Serious Q for big Cloud spenders - how much have you negiotiated egress down from the list price?

Not a extreme cloud spender but we have basically free egress on Azure. Well, "waived" for up to 15% of the total monthly bill so we can’t go too crazy.

It’s not secret information: https://azure.microsoft.com/en-us/blog/azure-egress-fee-waiv...

Re: Why cloud bandwidth is so obscenely expensive and what you can do about that

#8
Beware of cloud providers that don't "charge for egress" but do charge on a metric that is effectively a proxy for egress.

For example, a cloud streaming service that charges for video delivery by per minute streamed is just charging for egress with extra steps.

Re: Why cloud bandwidth is so obscenely expensive and what you can do about that

#9

TL;DR - author claims the hardest part of running a cloud PaaS is networking, thus the cloud providers charge you a ton for egress to outsource the optimization problem to you. It's not clear to me this claim is true - they're in the business of solving exactly this optimization problem - and they have, they're just capturing maximum profit. If it was really the hardest / most costly - then other providers wouldn't b…

??? This is obviously true. The bandwidth available in a geographic location is, practically speaking, limited. Roads are cheap to pave, but if there was congestion 24/7 and you paved all you could, then you would need to start rationing road usage. For a business the best way to ration is to charge more. Solving this problem requires a massive amount of engineering work, which would also justify the increased cost.
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