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

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21–30 of 164 posts

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

#21
post #10

Earlier quoted context omitted.

Hetzner comes to mind…

Hetzner's peerings aren't the best, especially outside EU/US. Plus they recently intercepted traffic to one of their servers, an attack likely perpetrated by the German state.

They have regions outside of Germany too. And IIRC, the people being wire tapped were doing some illegal stuff.

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

#22
post #13

Based on the pricing you see at VPS providers, bare metal providers, and colocation, I have long called BS on large cloud provider bandwidth pricing. It's completely insane, like more than 10X higher than VPSes and more than 100-1000X higher than wholesale (bare metal and colo). Take this for example: https://www.fdcservers.com/ That company is profitable, which means they have to be paying less than this for bandwid…

> Take this for example: https://www.fdcservers.com/ You took "as example" literally the cheapest provider that exists in this space. (and lowest network quality/connections)

Okay, then here's more:

Hetzner, Datapacket, Hivelocity, Reliablesite, and OVH.

I did pick them as an extreme example, but even the more expensive bare metal and colo providers are like 100X cheaper than cloud. VPS providers like Digital Ocean and Vultr are ~10X cheaper.

Cloud sells egress bandwidth at an enormous markup. Meanwhile ingress is free. If this were a technical limitation ingress would be billed too because there's nothing asymmetric about the Internet. The asymmetry you usually see on home connections is mostly a DOCSIS (cable modem) limitation or a way of segmenting personal vs. business accounts.

BTW we run a few things at FDCServers (among others) and monitor them and they seem fine. We do use multiple providers in case one of them has a huge issue.

Edit: these providers can't be overselling too much because the fact that they have such cheap bandwidth makes them a magnet for bandwidth-heavy work loads: game servers, seed boxes, DIY CDNs, TURN servers, etc.

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

#23

I think egress would benefit from some regulation. This would enable other companies to compete with specific AWS services, without competing with AWS as a whole. Though I probably wouldn't price cap egress itself, but rather force amazon to offer cheap peering.

Amazon & Co. will always rule for the exact same reason Microsoft Office has/will. It's the combination of services effect creating a natural moat. There's nothing you can do about that other than to break up the large entities, it forms by default unless you do that. It requires a comically enormous burden placed on the entity to break it because of how fantastically strong the combination effect is for customers, cheap peering won't touch it.

So long as they don't put too many barriers up (raising the cost through unnecessary regulation to cut out the competition, which would benefit AWS), we'll always have competitive alternatives, including running your own infrastructure inexpensively with companies like Hetzner or Cloudflare (depending on what you need).

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

#24
Cloud bandwidth is cheap if you commit to spending a certain amount per month.

Our bandwidth is less than .001/GB with like a $1500 monthly commitment in AWS. Fastly was even cheaper (which is why we're using fastly).

Call you AM and talk. It's not hard, and it'll save you a ton of money.

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

#26

Earlier quoted context omitted.

Hetzner's peerings aren't the best, especially outside EU/US. Plus they recently intercepted traffic to one of their servers, an attack likely perpetrated by the German state.

They have regions outside of Germany too. And IIRC, the people being wire tapped were doing some illegal stuff.

Also it was a court order. All legit providers have to comply with pen register / trap and trace warrants.

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

#27
post #16

I'm kind of amazed that AWS is the cheapest on this list, as they're typically the first example people give when they talk about overcharging for bandwidth. When I worked at Malwarebytes between 2008 and 2014 we measured our bandwidth in petabytes, but it was still only about $25k/month. This was obviously a custom contract, but it really is interesting how bandwidth pricing has remained relatively static over the l…

Yeah I think the list is only highlighting the worst offenders. It would be more useful to also include the cheap VPS providers mentioned later, that would be:

- Scaleway: $0

- Hetzner: ~$490 _(article says bandwidth is free but I think above 20TB it's charged at 1 Euro/TB)_

- DigitalOcean/Vultr: ~$5k depending on compute usage _(you get a free bandwidth allowance based on compute)_

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

#28

Earlier quoted context omitted.

??? 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.

How does Cloudflare offer it for free?

Um. It’s not. They have a free plan, but it’s subsidized by their paying customers.

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

#29
post #16

I'm kind of amazed that AWS is the cheapest on this list, as they're typically the first example people give when they talk about overcharging for bandwidth. When I worked at Malwarebytes between 2008 and 2014 we measured our bandwidth in petabytes, but it was still only about $25k/month. This was obviously a custom contract, but it really is interesting how bandwidth pricing has remained relatively static over the l…

Just to be clear, was Malwarebytes using AWS?

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

#30

Earlier quoted context omitted.

Hetzner's peerings aren't the best, especially outside EU/US. Plus they recently intercepted traffic to one of their servers, an attack likely perpetrated by the German state.

They have regions outside of Germany too. And IIRC, the people being wire tapped were doing some illegal stuff.

Exactly, they were communicating in the russian language.
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