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Bank of America's CEO says it's saved $2B per year by building its own cloud

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101–110 of 321 posts

Re: Bank of America's CEO says it's saved $2B per year by building its own cloud

#101

I think a strong argument can be made either way. There's definitely financial savings to be had by doing it in-house (either literally or utilizing existing data centers as here). But what I've experienced is that companies are often attracted to Big Cloud™ not just for financial reasons but to flatten/simplify their corporate reporting structure. It is the ultimate delegation. This isn't simply about having fewer s…

IMO there's just a lot of factors that will vary from business to business.

Re: Bank of America's CEO says it's saved $2B per year by building its own cloud

#102

Many large companies save money by having their own cloud, but those clouds sometimes really suck compared to AWS. I know of one very large company where any request for a change in their cloud infrastructure always required a minimum two week advanced notice. In AWS such a change is just a mouse click away, and could be done in seconds. AWS also has a really amazing integration of a large variety of services which i…

our internal cloud requires months in advance to get changes done :(

It should be named 'server in a remote place' instead of cloud.

Re: Bank of America's CEO says it's saved $2B per year by building its own cloud

#103

I continue to be amazed that any business of more than a few hundred employees would ever consider using off-prem hosting. Cloud services are there to bootstrap a business, not maintain it.

Well the issue is that you bootstrap on AWS and then have a hard time going on premise without a major rewrite or initiative. That and you want to keep adding features and driving the product forward... it is easy to see how this happens. Plus you can have 200 people focused on things other than running ESX boxes or docker or whatever you need.

Re: Bank of America's CEO says it's saved $2B per year by building its own cloud

#104
post #45

I think a strong argument can be made either way. There's definitely financial savings to be had by doing it in-house (either literally or utilizing existing data centers as here). But what I've experienced is that companies are often attracted to Big Cloud™ not just for financial reasons but to flatten/simplify their corporate reporting structure. It is the ultimate delegation. This isn't simply about having fewer s…

> This isn't simply about having fewer staff I've always wondered about this. In IT now instead of having 5 system operators one has 10 "cloud consultants" and nobody knows what they are doing. I've been through a couple of "migrations to the cloud" now and I've never seen a reduction in IT staff or the cost of running IT operations. About the wrong decisioning part, if you chose the wrong "cloud" for your business t…

And nobody got fired for purchasing IBM.

You start wondering if 90% of corporate world are there to do nothing if not erecting roadblocks for people who are actually doing something. But then you start wondering maybe it's a good thing that all of these people get paid and could spend their money so that majority of the country has purchasing power and not live in piss poor poverty.

Re: Bank of America's CEO says it's saved $2B per year by building its own cloud

#105

> The bank, which has a $10 billion annual tech budget Am I the only one completely befuddled by this number? What the fuck are they doing with these money and 200k servers? These are facebook numbers. For a bank. What?

any software the bank is licensing can run into the 10's of millions per year, for anything they use: loan orignation, underwriting, etc. they have a lot of users also so just think about their basic workspace cost per user for all the software necessary.

Re: Bank of America's CEO says it's saved $2B per year by building its own cloud

#106

If you know your traffic well, private cloud saves a lot of money. Few years back i bet hybrid clouds will take over and for some reason it did not happen. I still believe hybrid cloud is the solution for mid size and up companies. You definitely need cloud provides for handling traffic spikes.

AWS and Azure is moving into hybrid space, checkout AWS Outpost - your own cloud, AWS software (or something similar)

Re: Bank of America's CEO says it's saved $2B per year by building its own cloud

#107
"Building its own cloud" = leasing data centers from Equinix or other large data center providers. Financial services have challenges using public cloud due to regulatory and compliance requirements. Most of these challenges are self made - artifacts of moving their teams from "This is how we currently do it" to a shared services model.

Curious if they are all in on providers like Redhat Openshift or Pivotal Cloud Foundry as their PaaS layer.

Re: Bank of America's CEO says it's saved $2B per year by building its own cloud

#108
post #17

Earlier quoted context omitted.

2 Billion per year buys a lot of R&D. So, while Amazon is great for small to mid sized companies, BoA is huge and would need massive discounts to consider using Amazon.

Amazon can invest heavily in new tech because it has millions of customers who get the benefit. BofA can only invest in new tech to the degree that it benefits one (admittedly large) customer. This makes the decision seem more suspect in the long-run.

Counterpoint: BoFA can invest in tech that makes sense for its specialized use case that Amazon never would.

Re: Bank of America's CEO says it's saved $2B per year by building its own cloud

#110
post #24

I'm not really sure why this should be a surprise. Just as big companies use a mixture of owned and rented real estate for various reasons, the same is true of other large expenses. If you have a large, predictable, core workload it makes sense to bring it in house, and use the elastic (rented) resources for unpredictable stuff (e.g. new efforts). It's not like Amazon doesn't know this too (e.g. they try to make the…

I don’t think proprietary is offered to make transition harder. In a lot of cases they simply offer a better option.
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