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

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131–140 of 164 posts

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

#131
post #5

Earlier quoted context omitted.

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?)

You can get it down to ~1c/g at best then if you want cheaper you gotta build your own

In my experience pricing can go far lower than that. The sibling commenter saying $0.001/GB on an 18PB /year commit seems reasonable to me.

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

#132
post #86

Earlier quoted context omitted.

Did you see the sibling comment posted 45 minutes before you saying they pay 0.1c/g at aws when committing to spending 1500$/month?

Did you see my comment in a sibling thread? If this was common then you could earn $$$ via egress arbitrage…

What would your hypothetical egress arbitrage look like? Keep in mind we are specifically talking about cloudfront bandwidth - so being able to route to an upstream without that upstream also paying for bandwidth likely is not possible.

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

#133
post #130

Earlier quoted context omitted.

We had a commit that was like three orders of magnitude more and our price was 1-2c for cdn and 2c for tier1 cloud (but only “partner” networks, the rest was list). That was after us threatening to leave (and having capability to do so). So either you are mistaken or your am really really likes you.

No, it's your people suck at negotiating. Again, we got quotes from Fastly, Akamai, and AWS. Our commit is/was $1500/month (we're on fastly now). Fastly gave us like 6 month free to switch, both bandwidth and requests.

So you mean to tell me you negotiated roughly -99% their list with a 1.5k commit?

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

#134
post #132

Earlier quoted context omitted.

Did you see my comment in a sibling thread? If this was common then you could earn $$$ via egress arbitrage…

What would your hypothetical egress arbitrage look like? Keep in mind we are specifically talking about cloudfront bandwidth - so being able to route to an upstream without that upstream also paying for bandwidth likely is not possible.

1. Run a proxy in your VPC and redirect all CF requests to someone elses VPC 2. ???? 3. Profit! (assuming you charged them >2.1c/g)

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

#135
post #131

Earlier quoted context omitted.

You can get it down to ~1c/g at best then if you want cheaper you gotta build your own

In my experience pricing can go far lower than that. The sibling commenter saying $0.001/GB on an 18PB /year commit seems reasonable to me.

You said 90% off which i’ve seen personally and amount to roughly 1c (most of the list starts at like 8-10c in the US). The sibling says they somehow got 90% off that original 90% which seems silly and def not something i would count on

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

#136
post #65

I’ve just never seen bandwidth be a significant part of the bill for any sass I’ve built/worked for. I’m super curious about this. What kind of sass businesses use huge amounts of bandwdith but don’t provide enough commercial value to the customers to make it viable? Can folks with first-hand experience please share here?

Bandwidth is rarely an issue if you're transferring mostly text, often an issue if you're transferring images (except for highly cacheable static images), and always an issue if you're transferring video or game assets. That's just how it works because the orders of magnitude differ so much. An image resource can easily be 100x some text (or HTML or API response), and a video can easily be 1000x an image. Another fac…

Thank you, the e-commerce example is definitely something I hadn’t thought about. Having high quality imagery helps make sales but comes at a cost. Looking around at some sites I buy from, I think I can squint and see this “out in plain sight”.

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

#137
post #65

I’ve just never seen bandwidth be a significant part of the bill for any sass I’ve built/worked for. I’m super curious about this. What kind of sass businesses use huge amounts of bandwdith but don’t provide enough commercial value to the customers to make it viable? Can folks with first-hand experience please share here?

Why does it need to be sass? My problem was hosting too many photos on the landing pages. Like literally like 60 photos on 4 different landing pages. The page looked fantastic and people would email me that I have the best site on the internet. But if I ever went viral, I'd always go down. I have since changed so the pages only have like 20 pictures now. I only now became profitable, and it has little to do with anyt…

100% - referencing SaaS is just me being narrow minded. Your example hits close to home for me. I feel that the more creative people (like but not limited to technical folks) can try new things without economic penalties, the more we all benefit from the inevitable innovations. Compared to how things worked when I started I love how inexpensive experiments are today, even the ones that don’t “blow up”. I totally see your point, too — there is still some weighty risks and egress costs can be one of them.

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

#138

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…

The author is just spitballing in their role as a Cloudflare shill. They don’t actually know jack shit about public cloud netops or pricing strategy.

The so-called “bandwidth alliance” they spruik so hard is a negotiating vehicle for Cloudflare, intended to improve their position when haggling over peering, to support profitability of their DDoS protection service.

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

#139
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?

We used a combination of CDNs and balanced according to region (some were better in Australia than others, for instance).

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

#140

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…

The author is just spitballing in their role as a Cloudflare shill. They don’t actually know jack shit about public cloud netops or pricing strategy. The so-called “bandwidth alliance” they spruik so hard is a negotiating vehicle for Cloudflare, intended to improve their position when haggling over peering, to support profitability of their DDoS protection service.

Where’s the profitability in the DDoS service? Even free accounts have had massive DDoS attacks mitigated - for free. There is no pricing anywhere in their portfolio for DDoS mitigation or bandwidth. Cloudflare sells a lot of products but DDoS protection isn’t one of them.

It’s a hook to get users on the platform to potentially upsell later but if all you need is DDoS protection they provide it for free.

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