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Free data transfer out to internet when moving out of AWS

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Re: Free data transfer out to internet when moving out of AWS

#111

Post by amluto »

bklyn11201 wrote: post #96
ckdarby wrote: post #82

Earlier quoted context omitted.

I think AWS doesn't truly care. They've probably internally planned for the day when egress cost billing would be chipped away and have been planning. It is a total cash cow and huge boast on margins for them, but they've been taking that money over the years and diversifying into managed services. The managed services are expensive, but boy do they work well. Over the last couple years been running +100 each of mana…

Exactly correct. AWS has a giant suite of services, and if they are forced to reduce egress charges, they would raise prices on other services to keep their margins consistent. The market knows this and thus why the market doesn't react to non-news like this. An interesting question: why does AWS charge so much for egress knowing that it could dissuade some currently-on-prem use cases? It definitely forces optimizati…

> they would raise prices on other services to keep their margins consistent. The market knows this and thus why the market doesn't react to non-news like this.

I’m unconvinced. A lot of money is spent on third party services (think Snowflake, but there are a ton) where the third party service is offered in AWS, GCP, and Azure. There is no on-the-Internet option.

If egress fees go away, on-the-Internet becomes appealing, and there goes a lot of revenue. If fees for other services go up, on-the-Internet becomes even more appealing.

Re: Free data transfer out to internet when moving out of AWS

#112

Post by ensignavenger »

makeitdouble wrote: post #66
switch007 wrote: post #36

Earlier quoted context omitted.

It’s way too early to thank them. Wait 5-10 years, see what effect it has on prices, competition etc

GCP, Azure and AWS have been here for more than 10 years, free to do almost whatever they want. Did the prices decrease and competions pop up everywhere ?

There are quite a few competitors in the space, yes. Prices haven't gone down as much as I would like, but they have gone down some and the products have improved.

Re: Free data transfer out to internet when moving out of AWS

#113

Post by bombcar »

amluto wrote: post #110
bombcar wrote: post #100

Earlier quoted context omitted.

Part of the problem (and why laws have to be used) is that the companies want all the other companies to do the same change at the same time. If you do it early, you're at a disadvantage (unless you can market it heavily, which usually only is if you're the small player already).

Really? If AWS unilaterally cut egress fees 100x, then a few things might happen: GCP and Azure customers might migrate to AWS or have very serious phone calls with their account reps. (Hmm, GCP customers might be unable to reach an account rep.) Third party providers, who are currently stuck in AWS, GCP and Azure because their customers can’t afford egress if they move out, will consider alternative hosting. This is…

Because now all the customers who want to leave, can do so, and the customers you could get from other platforms can't cheaply leave, yet.

Re: Free data transfer out to internet when moving out of AWS

#114

Post by ensignavenger »

SteveNuts wrote: post #80
pquki4 wrote: post #74

Earlier quoted context omitted.

How can the ability to transfer data to another cloud provider or your own server increase price?? Doesn't that mean there is more & fairer competition?

I think they mean that AWS et al will make that margin up somewhere else by either charging for something they didn’t charge for before or increasing prices. Companies don’t like to have their bottom line affected.

But the real key to Amazon wanting to charge high egres fees was to keep you from moving your data out. If they raise prices elsewhere, there is one less barrier to moving to one of their many competitors.

Re: Free data transfer out to internet when moving out of AWS

#115

Post by amluto »

bombcar wrote: post #113
amluto wrote: post #110

Earlier quoted context omitted.

Really? If AWS unilaterally cut egress fees 100x, then a few things might happen: GCP and Azure customers might migrate to AWS or have very serious phone calls with their account reps. (Hmm, GCP customers might be unable to reach an account rep.) Third party providers, who are currently stuck in AWS, GCP and Azure because their customers can’t afford egress if they move out, will consider alternative hosting. This is…

Because now all the customers who want to leave, can do so, and the customers you could get from other platforms can't cheaply leave, yet.

Leaving isn’t particularly expensive regardless: compare egress prices to non-Glacier S3 prices. Leaving doesn’t cost more than a couple months of staying.

What is expensive is leaving in part. You can’t offload part of your data pipelines to, say, Digital Ocean or a colo cost-effectively.

Re: Free data transfer out to internet when moving out of AWS

#116

Post by uptownfunk »

bklyn11201 wrote: post #96
ckdarby wrote: post #82

Earlier quoted context omitted.

I think AWS doesn't truly care. They've probably internally planned for the day when egress cost billing would be chipped away and have been planning. It is a total cash cow and huge boast on margins for them, but they've been taking that money over the years and diversifying into managed services. The managed services are expensive, but boy do they work well. Over the last couple years been running +100 each of mana…

Exactly correct. AWS has a giant suite of services, and if they are forced to reduce egress charges, they would raise prices on other services to keep their margins consistent. The market knows this and thus why the market doesn't react to non-news like this. An interesting question: why does AWS charge so much for egress knowing that it could dissuade some currently-on-prem use cases? It definitely forces optimizati…

AWS internally has a very strong allergy to raising prices. If anything there is generally pressure to reduce prices.

Re: Free data transfer out to internet when moving out of AWS

#117

Post by londons_explore »

usr1106 wrote: post #23
bnprks wrote: post #14

I hope this is just the start of egress fee changes in response to the European Data Act. Taking a look at other parts of the law's text [1], I think this change related to Article 25, but Article 34 section 2 is what really stands out to me: > Where a data processing service is being used in parallel with another data processing service, the providers of data processing services may impose data egress charges, but o…

So do we know how much are the egress costs for AWS? In other words how much AWS is overcharging? I guess they make every effort / creative bookkeeping trick to exaggerate their egress costs and it will take years until EU completes their investigation and fines them and more years until courts have had their final word.

Indeed. I think Amazon could argue that since egress rates are higher than ingress rates, effectively all their network costs are egress.

And all their network costs includes all the routers, all the fibers, all the staff in the networking and infrastructure teams, and all the teams that support those teams.

Re: Free data transfer out to internet when moving out of AWS

#118

Post by SturgeonsLaw »

paxys wrote: post #98

Big tech firms – moving to another cloud provider will cost you $50M in egress fees. EU – actually, it must be free. Big tech firms – free and open competition is integral to society, and we value freedom of choice over anything else, so of course data transfer is free for our valued customers.

More and more it feels like the EU is the only thing keeping the bastards honest

Re: Free data transfer out to internet when moving out of AWS

#119

Post by afp14 »

nerdjon wrote: post #68
bnprks wrote: post #14

I hope this is just the start of egress fee changes in response to the European Data Act. Taking a look at other parts of the law's text [1], I think this change related to Article 25, but Article 34 section 2 is what really stands out to me: > Where a data processing service is being used in parallel with another data processing service, the providers of data processing services may impose data egress charges, but o…

My question (and maybe it is answered there but I don't want to read a full legal document to find it). What exactly do they consider "costs"? Is it just the cost they pay an IP for data out or can it include maintenance, hardware, people, etc? I am also curious if this will have any impact on the cost of services. Does AWS do any sort of thing where the higher egress costs offset the cost of services? Or ingress cos…

in cali the power company says "you can use this cost structure or that cost structure, your choice!" - so it's this vile little game where if you choose incorrectly they scalp you, and it takes a bit of arithmetic to compute expected values, power usage at various times of day, etc - something the average joe may not be able to estimate easily. in an ideal world, they would automatically pick the lower of the two.

to a degree I have seen AWS plans work this way, where you choose from options A/B/C and buyer beware if you end up getting scalped.

Re: Free data transfer out to internet when moving out of AWS

#120

Post by ukuina »

sgjohnson wrote: post #19
ukuina wrote: post #8

Note that this is not free egress to premises, only "out to internet".

on-prem is still “the internet”

I mean this is not fee-free unlimited egress back to prem, but a one-time export of your data with manual approval. This does not let you build big-data workflows around temporary use of EC2.
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