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Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

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Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#111
post #4

I don't know that 37Signals counts as a "major enterprise". Their Cloud exodus can't have been more than a few dozen servers, right? Meanwhile AWS is growing at 20%/year, Azure at 33% and GCP at 35%. That doesn't seem compatible with any kind of major cloud repatriation trend.

You can have multiple trends at once. Veteran cloud users leaving, international business onboarding.

But you have provided zero evidence for any of it.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#112
post #59
post #47

Earlier quoted context omitted.

Running a service takes more than a fat pipe. You need to handle power outages, need redundant internet connections, ect, ect.

Yes, but for example a 10Gbit/s pipe is about 3PB of transfer capacity per month which is about 150 000$/month in S3 traffic. A 40kW UPS which can handle about 2 racks (2x42U) of high density servers, with a generator cost about 50k$. A redundant link with your own AS so you can BGP should cost about 5k$ per month (at least here in switzerland). Of course it really depends on the application, but if you host somethin…

10Gbps is one "teen with a stolen credit card" DDoS event away from being unusable. If you're running a big service that someone may dislike, that's really not enough.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#113
post #99

Earlier quoted context omitted.

Amazing story, and now the flywheel is living rent free in a steampunk-inspired corner of my brain. What are these called so I can look them up on the net? Like this maybe? https://www.torus.co/torus-flywheel

They're chonky devices which were not really off-the-shelf until the last decade, as far as I know. There's very few images of them, but a smaller one looks like this: https://www.pv-magazine.com/2018/03/14/pilot-project-for-fly...

Very cool. Somehow I missed the idea of flywheels used to store energy. I assumed one that small would peter out in seconds.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#114
post #78

Earlier quoted context omitted.

"In parallel, GEICO, one of the largest automotive insurers in the United States, is actively repatriating many workloads from the cloud as part of a comprehensive architectural overhaul." Is GEICO a major enterprise

Per google, more than 30,000 employees, so I'd say enterprise-scale, sure. One of the biggest? No, but not tiny or even medium-sized.

Insurance companies tend to have far more capital than their employee numbers would suggest. Particularly Geico, who are famously cheap.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#116
post #115

Well, major companies aren't ditching the cloud and there is no evidence for a trend otherwise. And 37signals isn't a major organization for any of the big cloud providers. They are just a rounding error.

Major companies aren't paying the headline rates.

Even at 37 signals size you're paying negotiated rates.

And 37 signals may not be a "major" organization to you, but they're bigger than the vast majority of companies.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#117
post #59

Earlier quoted context omitted.

Yes, but for example a 10Gbit/s pipe is about 3PB of transfer capacity per month which is about 150 000$/month in S3 traffic. A 40kW UPS which can handle about 2 racks (2x42U) of high density servers, with a generator cost about 50k$. A redundant link with your own AS so you can BGP should cost about 5k$ per month (at least here in switzerland). Of course it really depends on the application, but if you host somethin…

10Gbps is one "teen with a stolen credit card" DDoS event away from being unusable. If you're running a big service that someone may dislike, that's really not enough.

That's why you put your services behind a CDN, even if it's not cacheable traffic. Then you can rate limit what's coming to you.

With the cloud, that DDoS can bankrupt you by causing you unconstrained bills instead.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#118

GEICO is moving away from the cloud because their IT is a joke. They had a horrible on-prem infrastructure, so they moved to the cloud not knowing how, and they made the same mistakes in the cloud as on-prem, plus the usual mistakes every cloud migration runs into. They are moving away from the cloud because their new VP's entire career is focused on running her own hardware. What we know about their new setup is abs…

It's very easy to estimate the real-world cost of on-prem or dedicated hosting - there is a wide range of providers that will quote you fixed monthly prices to manage it for you (including me) because we know what it costs us to manage various things for you.

AI is the only place I don't currently see much on-prem advantage, because buying SOTA equipment is hard, and it gets outdated too quickly.

For pretty much everything else, if you can't save 70%+ TCO, maintenance/devops included, over an optimized cloud setup, you're usually doing something very wrong, usually because the system is designed by someone who defaults to "cloud assumptions" (slow cores, too little RAM, too little fast storage, resulting in systems that are far more distributed than they need be is the typical issue).

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#119
post #116
post #115

Well, major companies aren't ditching the cloud and there is no evidence for a trend otherwise. And 37signals isn't a major organization for any of the big cloud providers. They are just a rounding error.

Major companies aren't paying the headline rates. Even at 37 signals size you're paying negotiated rates. And 37 signals may not be a "major" organization to you, but they're bigger than the vast majority of companies.

They are certainly a household name in the startup community but they are not a major organization for the big three cloud providers. Why is this important? Because the headline claims falsely that major companies are ditching the cloud providers. I have insights into the decision process for a major organization moving to the cloud and the motivation why 37 would leave cloud are in no way comparable to that of a major org.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#120
post #117

Earlier quoted context omitted.

10Gbps is one "teen with a stolen credit card" DDoS event away from being unusable. If you're running a big service that someone may dislike, that's really not enough.

That's why you put your services behind a CDN, even if it's not cacheable traffic. Then you can rate limit what's coming to you. With the cloud, that DDoS can bankrupt you by causing you unconstrained bills instead.

Oh definitely. I would've been more clear - I meant: you still can't stop there and you'll need a third-party to take the traffic with either solution.
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